The Impact of Artificial Intelligence on Tax Compliance and Planning: Benefits, Challenges, and Future Perspectives

Abstract

The objective of this study is to explore the role of Artificial Intelligence (AI) in enhancing tax compliance and planning. Using a quantitative survey with 109 responses from professionals and students, the study examines the perceived benefits, challenges, and future outlook of AI in tax processes. Key findings indicate AI’s significant advantages, such as time savings, improved accuracy, and tax-saving opportunities. However, challenges like high costs, data security concerns, and tool complexity persist. A one-sample t-test showed AI’s impact on ten out of eleven identified variables, with time reduction (M = 4.22) being the highest-ranked effect. While simplicity and compliance with regulations also scored high, difficulty of use showed neutral significance. A Pearson correlation analysis revealed no link between age and future AI implementation. The study suggests policymakers adopt AI in tax systems but address security concerns, while future research should improve AI algorithms and integration with financial systems.