Artifcial Intelligence and Tax Administration in Asia and the Pacifc

Abstract

This study investigates the significance of artificial intelligence for tax administrations in Asia and the Pacific. Tax evasion is a critical issue in lower- and middle-income countries, where tax administrations follow traditional processes. Individuals and corporations can evade tax through loopholes in the traditional tax collection process. This study identifies issues and challenges in tax administration and provides recommendations to take advantage of artificial intelligence in tax administration in Asia and the Pacific. The findings of this study can benefit tax authorities and corporations. Tax authorities can effectively monitor the tax administration process by using machine learning tools and control costs associated with the traditional taxation process. The findings can also help corporations monitor activities in real time and instantly adjust to changes with machine learning tools and blockchain. Artificial intelligence in taxation can help corporations maintain transparency and comply with regulations, reducing the risk of fines and penalties from the tax authority.