Tax administration has evolved over time. It has shifted from a local operation, where taxes were administered by peers, to a centralised –and increasingly digitalised, distant, and non-human –function. This change brings efficiencies to the tax authority but can create frictions for more marginalised taxpayers. These frictions, or sludge, can make it more difficult for taxpayers to comply with their tax obligations, even if they want to. This paper calls for a greater understanding of the sludge created by frictions in tax administration. To do so, policymakers and the tax administrators would benefit from undertaking a comprehensive sludge audit of existing and future practice to understand a) whether this sludge can be removed, and b) what additional support may be needed for marginalised taxpayers
