AI-Powered Decision Support Systems for Enhancing Tax Compliance and Public Revenue Management

Vamsee Pamisetty

Abstract: Tax compliance is crucial for all governments to collect taxes that support the provision of services to their people. With AE-related schemes increasing in scale and complexity, it is now more essential than ever to provide and maintain effective mechanisms to ensure tax compliance. This paper presents an overview of the 4AI-QDSS system architecture that can: (1) account for this growing need by demonstrating how modern AI technology can be harnessed in tax compliance systems and (2) present Eunomia, a prototype of the proposed system. The presentation mainly rests on the TA-8847 report and documentation, which describes a comprehensive decision support system for tax compliance and public revenue administration. Tax compliance is crucial for quickly collecting taxes that allow governments to provide services to their people. Tax compliance is the government?s effort decision to ensure taxpayers? adherence to statutes, regulations, and penalties concerning technology assessments and proper licensing for monitoring compliance. In an increasingly globalized economy, different jurisdictions are facing pressures from sophisticated tax avoidance and evasion strategies. With the recent signing by more than 140 countries and jurisdictions of the OECD- and G20-accompanied Multilateral Convention on Mutual Administrative Assistance in Tax Matters, along with a broad consensus on the Common Reporting Standard for Automatic Exchange of Financial Account Information, it is more essential than ever for governments to provide and maintain effective mechanisms to ensure tax compliance [1]. Taiwan?s authority decision in this matter is thus of both urgent and significant concern at this juncture. This past decade has witnessed intensified scrutiny of offshore tax avoidance. On July 1st, 2006, the first meeting of a new government initiative was held to discuss ways to abolish the International Banking Unit?s Tax Exemption Act. The Act had allowed foreign banks to operate in Taiwan, and for any local tax-free deposits held in US dollar accounts. In February 2014, findings that estimates of the annual tax-exempt losses of a large domestic insurance company, current member of the Taiwan Financial Supervisory Commission with a 101% administrative abbreviation, furnished the intellectual basis and initial charge for timely and ethically sound reform. In late July of 2014, the Director of General Administration of Taxation, Ministry of Finance, held a public meeting asking for opinions on regulations to be promulgated. It was the last call for the proponents to argue to remove any loopholes before the issue was sent to Taiwan?s Executive Yuans [2].

Keywords: AI, Decision Support Systems, Tax Compliance, Public Revenue Management, Machine Learning, Predictive Analytics, Government Technology, Fiscal Policy, Risk Assessment, Automation, Data Analytics, Tax Administration, Revenue Forecasting, Digital Transformation, Compliance Monitoring

How to Cite?: Vamsee Pamisetty, "AI-Powered Decision Support Systems for Enhancing Tax Compliance and Public Revenue Management", Volume 11 Issue 12, December 2022, International Journal of Science and Research (IJSR), Pages: 1490-1504, https://www.ijsr.net/getabstract.php?paperid=MS2212143253, DOI: https://dx.doi.org/10.21275/MS2212143253