Experts caution on use of artificial intelligence for tax collection

Experts in the tax system have cautioned practitioners and revenue collectors across the country on the adoption of Artificial Intelligence (AI) in tax system. They stressed the need to review tax practitioners’ weaknesses and strengthen it before deploying AI in revenue collection. They spoke during a Webinar on ICT & Taxation – Leveraging the AI […]

Experts in the tax system have cautioned practitioners and revenue collectors across the country on the adoption of Artificial Intelligence (AI) in tax system.

They stressed the need to review tax practitioners’ weaknesses and strengthen it before deploying AI in revenue collection.

They spoke during a Webinar on ICT & Taxation – Leveraging the AI Adoption Model for an Intelligent Tax System organised by the Chartered Institute of Taxation of Nigeria (CITN).

One of the presenters, Akeem Adebayo Ogunseni, Associate Partner EY said while AI adoption is essential to deepening revenue collection, such deployment should start from senior Tax Managers.

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According to him, AI aids automated repetitive and time-consuming tasks such as data entry, document processing, and compliance checks, allowing tax professionals to focus on more strategic activities.

AI algorithms analyse large volumes of data with high precision, reducing the risk of human error in tax calculations and filings.

He added that AI can aid tax practitioners, taxpayers and their consultants in pulling a strong defence through proper documentation, AI transaction trails, and other related evidence that can be hardly altered.

He however cautioned that while deploying AI, there should be alternatives, saying, “Don’t deploy AI and put just one individual to manage the operation so that your investment would not go down the drain.

“You should look at infrastructural availability. Consider hardware outsourcing.

Competency is very key as earlier discussed. Technology knowledge, AI knowledge and tax practitioners knowledge, emotional intelligence are all important.”

James Kwesi Addison, another speaker, called on tax authorities to adopt a balanced approach by integrating AI and EI (Emotional Intelligence) thoughtfully for a more humane and efficient system.

Dr. Caroline Ndubuisi, Chairman, ICT Committee, CITN, explained that strategic adoption of ICT and AI can improve tax practices.

She said, “As we embark on this journey together, let us be reminded that the tax profession holds a pivotal role in national development.

“Through strategic adoption of ICT and AI, we can elevate our practices, improve compliance, and drive our nation’s economic growth.”