The role of AI in enhancing tax transparency and reducing evasion

Artificial Intelligence (AI) is revolutionizing tax administration by enhancing transparency and reducing tax evasion. This paper investigates the integration of AI technologies within tax systems, evaluating their effectiveness in improving compliance and the proactive detection of non-compliance. Through a detailed analysis of case studies and existing literature, the research underscores AI’s capability to identify irregular patterns and predict potential evasion, thereby enabling tax authorities to take timely and effective actions. The paper also considers the ethical and privacy implications associated with deploying AI in tax systems, highlighting the need for robust safeguards. Overall, the findings demonstrate that AI not only supports more efficient tax collection but also promotes a fairer compliance environment.