AI and Taxation: Is it a friend or a foe?

• In Event: ACCOUNTING: Current Topics in Accounting

Abstract

This paper examines the opportunities, challenges, and implications associated with the use of AI in Taxation. AI plays an important role in shaping the tax system in the ever-changing tax regulations and laws, where compliance is the main component of success and a critical driver of trust. The research highlights the importance of human involvement, understanding and responding to regulatory changes, and oversight to enhance accuracy, productivity, and compliance in AI-driven tax processes. Furthermore, it emphasizes the need for a well-balanced strategy to capture AI's benefits while mitigating undesirable effects related to fairness, accountability, privacy, and transparency.

Authors

• Salma Boumediene, Naval Postgraduate School

• Cyrine Boumediene, Amazon Inc.