ROLE OF ARTIFICIAL INTELLIGENCE IN IMPROVING TAX FILLING ACCURACY

Abstract

Artificial Intelligence (AI) has emerged as one of the most important technologies transforming modern business and government activities. The taxation sector is also experiencing significant changes through the adoption of AI, machine learning, data analytics, automation and intelligent digital systems. Traditional taxation systems involve large amounts of data collection, tax calculation, verification, assessment and compliance monitoring. These activities can be time-consuming and may involve human errors. AI provides opportunities to automate many of these processes and improve the efficiency of tax administration.

          AI can analyse huge volumes of taxpayer information and identify unusual financial transactions, suspicious activities and possible cases of tax evasion. It can support tax authorities in selecting high-risk cases for detailed investigation. AI can also assist in tax calculation, return processing, document verification and taxpayer communication. Chatbots and virtual assistants can provide immediate responses to common tax-related questions and improve taxpayer services.

          The implementation of AI in taxation provides several benefits, including improved accuracy, faster processing, reduction of administrative costs, better fraud detection and increased tax compliance. At the same time, the use of AI creates challenges related to data privacy, cybersecurity, algorithmic bias, transparency, accountability and the need for skilled employees.