Tax Authorities Increasingly Use AI in Audits, OECD Report Finds

Tax authorities have been spending big on digitalization efforts, with many using AI to crack down on tax evasion and developing digital identity and information-sharing tools, an OECD report said.

The report, based on 2024 data and released Tuesday, found that 70% of the 54 nations in the OECD’s Forum on Tax Administration were making use of artificial intelligence tools and and 80% had developed a digital transformation strategy.

• Tax authorities’ most common use of AI involved detecting of tax evasion and fraud, the report said, followed by risk assessment processes and parts of virtual assistants.
• The report ...