Editorial: European Law Restrictions on Tax Authorities’ Use of Artificial Intelligence Systems: Reflections on Some Recent Developments

Abstract

The article discusses the increasing use of artificial intelligence (AI) by tax authorities in the European Union, the resulting benefits and risks, and the necessity for an appropriate legal framework. Tax administrations employ AI systems for various tasks, from risk detection to legal analysis. While automation offers efficiency, there are also risks, such as violations of fundamental rights and discrimination, illustrated by examples like the Dutch childcare benefits scandal. It deals with two relevant EU regulations, namely the General Data Protection Regulation (GDPR) and the proposed European AI regulation (AI Act), emphasizing the need for more clarity and protection for taxpayers. The GDPR imposes a principled ban on fully automated decisions but allows exceptions if appropriate measures are in place. The AI Act introduces a right to human intervention for high-risk AI systems, but the author argues that the regulations are not clear enough, especially in view of the upcoming ‘tax administration 3.0ʹ model of the OECD further reducing human intervention. In short, specific guidelines and regulations are needed to ensure the fundamental rights of taxpayers in an increasingly automated tax environment. Artificial Intelligence (AI), Tax authorities, General Data Protection Regulation (GDPR), European Union Artificial Intelligence Regulation (AI Act), Fundamental rights, Tax collection process, Human intervention, Risk detection, Taxpayer assistance, Tax administration 3.0 model (OECD)