The Independent Authority for Public Revenue (AADE) is moving rapidly towards the complete digitalization of tax audits, integrating Artificial Intelligence into its core operations. Through the new "Tax Administration 3.0" project, the tax authority aims to enhance the speed and objectivity of its assessments.
From Suppression to Prevention
The primary goal of the new system is not just to identify tax evasion but to detect trends in income concealment among individuals, businesses, and entire sectors. AADE's computers will now have the capability to monitor money trails and cross-reference billions of data points within seconds.
With the implementation of this program, the tax office aspires to operate proactively. Until now, the imposition of exorbitant fines often led to an increase in overdue debts to the state, as very few were actually collected. The new approach aims to prevent such situations before they become unmanageable for both taxpayers and the state.
The Human Factor and AI Ethics
Despite technological progress, the use of AI highlights the necessity for human oversight. While AI can apply legislation with precision, it lacks the "logic" and "ethics" required in policy-making and implementation.
A notable example illustrating the limitations of algorithms is the recent case of a student fined for receiving pocket money from her grandfather. An algorithm would impose a fine based strictly on the law; however, human judgment dictates focusing on substantial financial flows rather than small amounts, such as a 700-euro transfer.
