- AI is increasingly used in tax, offering potential benefits and risks.
- AI aids in bookkeeping, categorizing transactions, and predicting cashflows and tax liabilities.
- HMRC uses AI in its Connect system to analyze data and identify tax discrepancies.
- HMRC has confirmed using AI to monitor social media in criminal investigations, raising privacy concerns.
- AI has been used to review R&D claims, leading to inappropriate rejections and disputes.
- The First Tier Tribunal ruled HMRC must disclose AI use in R&D cases where decisions were overturned.
- Concerns exist about AI’s role in decision-making without sufficient human oversight, affecting trust in HMRC.
Source: menzies.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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