The impact on governments of the sharp rise in tax fraud utilizing artificial intelligence

Abstract

This report explores the significant impact that the sharp rise in tax fraud utilizing artificial intelligence (AI) is having on governments worldwide. As AI technology continues to advance, so do the capabilities of tax fraudsters who exploit its potential to manipulate and evade tax systems. This study examines the various ways in which AI is being employed for tax fraud, the consequences for government revenue, and the challenges faced by tax authorities. It also discusses the measures governments can take to combat AI-driven tax fraud effectively, emphasizing the need for proactive strategies, collaboration, and the use of advanced AI tools by tax authorities.