Big Data and Artificial Intelligence in the control processes of the Undersecretary of State for Taxation (SET) by 2021

Abstract

The use of macro data or Big Data by the Tax Administrations, together with the use of Artificial Intelligence tools, has enormous relevance in the current application of taxes. Tax Administrations use Big Data and Artificial Intelligence, in the selection of taxpayers to initiate a tax inspection procedure, in predictive models of the risk of non-compliance of the taxpayer, in virtual assistants, in the preparation of draft tax returns, in automated administrative action and in automated resolution acts. The use of these technological tools must be characterized by strict compliance with the legal principles that govern the application of taxes and must be respectful of the rights and guarantees of the taxpayer. After analyzing the elements, the author concludes, among other things, that: Big Data and AI are used for the purpose of assessing tax risks, which allows taxpayers to be segmented based on the probability of non-compliance, starting controls in the assumptions of greater probability of fraud. In the future, it is estimated that it will reach all areas and tax procedures, all the functions and powers of the tax administrations, and improve the efficiency of tax management. In short, the benefits that can be achieved through the use of AI are many and in our field it should favor better tax compliance, which is easier to use for taxpayers and, in turn, fairer, with fewer errors due to part of the SET, as well as there are risks that it could be misused, and that requires an adequate assessment from an ethical perspective and the adoption of a series of principles that should govern administrative action.