Advanced Tax Detection
As a continuation of our tour of Europe, we will be taking a closer look at Austria, the country that has been using AI to it’s full potential. Recently it was reported that additional tax revenue was generated with the assistance of analytics and machine learning.
Tax Technology
Various outlets including “Orbitax” an international tax platform, presented a detailed report on how the Minister of Finance generated around EUR 185 million in tax income in 2023.
A special unit within the Ministry of Finance known as “The Predictive Analytics Competence Centre” (PACC) use predictive analytics along with artificial intelligence to detect tax evasion and identify non-compliant individuals and businesses.
In 2023, the PACC examined around 6.5 million cases from a variety of tax administration sectors, such actions lead to the discovery of false information and fraud attempts linked to income tax, corporation tax, and value-added tax (VAT). In the end, a combination of 185 million euros in tax income was taken in.
Christian Weinzinger, head of the PACC special unit spoke zealously on how they benefited in using machine learning and predictive analytics to “help increase additional tax revenue through audit measures and identify individuals and legal entities that were not compliant”
Future Plans
The PACC claims to want to expand its analytical capabilities, with the help of of machine learning systems such as Generative AI, as a means “to enhance the efficiency and effectiveness of tax administration in Austria.” To do so they aim to combine the PCC’s analytical and fraud prevention skills.