Electronic Business and Application of Electronic Business in Tax Administration

Accelerated economic development and development of new technologies along with globalization have created conditions of dynamic environment in which a company must quickly adjust to market conditions in order to maintain competitive advantage or to be at the very top of the ladder of competitive economic operators. Networking of companies and public administration and development of the Internet have resulted in great changes in the way and efficiency of business system operation. Fast and simple communication has been made possible as well as immediate large distance data transfer, digital delivery of goods and services, creation of virtual organizations, etc. The goal of every business entity is identical at its core, and it refers to increased earnings of a company, that is, profit. The ways of accomplishing the goal are different for different business entities. It can be done through improved quality of products and services, cost reduction, increased productivity, innovation in business processes. Modern information and communication technology and electronic business are opportunities that should be seized to achieve the desired goals more easily. “IT, as well as electronic business, should not be used merely for automation of existing processes. ‘Glueing’ IT to the existing inefficient organization structure is a wrong approach, because the level of investment in IT is not followed by an appropriate increase in efficiency and effectiveness of the overall organisation structure.” Electronic business (e-Business) is a term that is very often used and widespread in nowadays society. It can be defined as a modern organisation form of business operations involving intensive application of information and communication technology in carrying out core business activities. The use of electronic business in relation to traditional business requires lower costs and reduces the time needed to carry out a business activity, and it also provides to a company an access to new markets that still have not been won. Application of electronic business ensures more competitive business and increases the chances for survival on the market.