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Italy’s Revenue Agency introduced an AI-powered chatbot to analyze tax returns, focusing on discrepancies among self-employed individuals and irregular accounting to enhance the detection of potential tax evasion.
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Developed with Sogei and the Department of Finance, the chatbot analyzes expenses, income, and VAT data in real-time, enabling auditors to better target potential evasion and increase audit efficiency.
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The AI system cross-references data and identifies evasion patterns beyond simple miscalculations, examining the ratio of reported expenses to income and discrepancies in VAT filings.
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By aggregating tax data demographically and geographically, the AI system creates a comprehensive financial snapshot of Italy, offering insights previously only possible through manual methods by Istat.
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Although AI automates and enhances audits, human auditors will still conduct deeper investigations into anomalies identified by the chatbot, ensuring thorough review and interpretation of complex cases.
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The expanded use of AI is expected to increase the number of tax audits significantly, improving compliance and detecting tax evasion risks more effectively than previous traditional audit methods.
Source: www.fiscal-requirements.com