Author(s) :

Philips Adekemi.

Volume/Issue :

Abstract :

The transformative potential of artificial intelligence (AI) in international tax compliance has been mentioned in much literature. AI has been described as the ultimate solution to the effective analysis of data and tax patterns, with immense potential to improve the efficiency and effectiveness of international tax compliance processes. The trickle-down effects on tax authorities to prioritize high-risk areas and taxpayers are also mentioned in the literature. These benefits further accumulate with the early detection and mitigation of tax-related risks. Some studies have also mentioned the potential benefits of AI in tax compliance for taxpayers. According to these studies, AI can provide tailored recommendations that enhance their understanding of their tax obligations. Thus, reducing incidents of non-compliance. This paper, similar to other studies, highlights the benefits of AI in tax compliance. However, it also underscores the need to address ethical and regulatory considerations, such as transparency, fairness, and privacy. The paper also advocates for the development of international guidelines, the adoption of a risk-based approach, consistent monitoring, effective collaboration among tax agencies, and data standardization to maximize the benefits of AI in international tax compliance. This paper concludes that the responsible and transparent use of AI can revolutionize international tax administration. It also suggests that the responsible and transparent use of AI can promote trust in international tax processes and lead to more efficient and effective international compliance efforts.

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