The menace of digital tax fraud for governments around the world is now bigger than ever. Capgemini’s report has modelled the evolution of tax fraud, taking into account new incidences of fraud enabled by digital technologies, and concluded that continuing to fight new tax fraud with conventional tools will result in a significant risk (eg in US $32 billion to $49 billion by 2020). The paper argues that tax authorities must move away from an incremental, piecemeal approach to fraud and must adopt a much more comprehensive transformative line of attack with a long-term vision, roadmap and multi-faceted solutions.