ARTIFICIAL INTELLIGENCE IN TAXATION

Abstract

Artificial Intelligence is becoming an important technology in modern tax administration, enhancing compliance monitoring, fraud detection, risk assessment, taxpayer services and revenue management. Traditional tax administration involves large volumes of financial information, repetitive verification and complex decision-making. It can be improved through machine learning, predictive analytics, natural language processing and intelligent automation. The paper discusses the role of Artificial Intelligence in taxation focusing on tax compliance, detection of tax evasion, taxpayer services and administrative efficiency. The study has used a descriptive research design and structured questionnaire to study the perception of the Taxpayers and Commerce professionals toward AI based taxation. The responses of 150 respondents were considered and analysed using percentage analysis, weighted mean and Chi-square test for the model analysis. The results suggest that respondents generally view AI as useful in reducing manual errors, improving fraud detection, speeding up tax-related services and encouraging compliance. However, data privacy, algorithmic bias, transparency, cybersecurity and lack of technical knowledge remain major barriers. The study concludes that artificial intelligence can make taxation better if used with appropriate oversight by humans, data protection and transparency and ethical governance.