State of use of AI tax systems

In March 2021 the EU Commission has approved the financing of an AI tool to be used by the Italian tax administration to combat fraud and tax evasion. The specificities of the tool have not yet been divulged.

What functions are performed with AI?

According to surveys of the OECD Forum on Tax Administration (FAT) of June 2022 and self-reported data of Member States, the Italian tax administrations also leverages machine-learning for:

  1. Virtual Assistance (VCA)
  2. Risk-detection
  3. Assistance of tax officials in making administrative decisions
  4. Risk-scoring and risks assessment processes

Yet, the specification of all these tools are not disclosed to the public. The use of these tools is also not regulated by specific legal norms.