Impact of artificial intelligence on tax collection

Abstract

Background: Tax authorities can rely on digital technologies such as artificial intelligence to better manage taxes. Digital technologies offer an opportunity to reduce fraud and increase revenue. Digital technologies can improve tax compliance by facilitating the collection of authentic, accurate and complete information about traded goods and services, and enhancing the ability of border agents to collect the appropriate level of trade taxes.

Main purpose of study: The main purpose of this study is to understand and determine how the implementation of artificial intelligence can impact the collection of taxes.

Method: The study will make use of a mixed method in terms of reviewing literature and the use of a quantitative research methodology. A mixed studies review includes the combination of both a systematic review and the use of other methods, such as questionnaires and surveys.

Results: After analysing the various publications, it is noted that artificial intelligence and its impact on tax systems is a broad and complex issue. Authors have concluded that automation and the use of artificial intelligence may help to improve tax compliance which will have an impact on tax collection.

Conclusions: Artificial intelligence may assist tax administrators by reducing the costs involved in the traditional tax process. This may be done by reducing the lengthy process and use of complicated paperwork used in tax collection. Tax authorities may rely on the aid of AI to assist in analysing the volumes of data provided by taxpayers when filing tax returns. The success of AI adoption within the tax system is reliant on how taxpayers accept and perceive its usage.