Taxes: Tax authorities continue to increase targeted checks for artificial intelligence, 50% of targeted checks in 2022 will be assisted by AI

AI to track fraudsters

Tax declaration omission or error tracking has been intensified with these new tools. This software now uses technologies found in companies that have to process large amounts of information: machine learning. Thus tax services strengthen the use of artificial intelligence to fight fraud every year and improve the efficiency of its services. In 2021, the share of checks noticed by AI was 45%, up from 32.5% a year earlier. Over the past few weeks, teams from the Directorate General of Public Finance (DGFIP) have been introducing themselves to a new tool. Its name: Galaxy. Approved by the National Commission for Computing and Liberty (Cnil) on March 11, the new computer software will allow tax officials to better track fraudsters using automated processing of taxpayer data.

The amount of tax audit received is as follows

Years The amount received is billions of euros N-1 variation in%
2021 € 10.7 billion + 37.35%
2020 7 7.79 billion -29.18%
2019 € 11.0 billion n / a

Galaxy: In the eyes of tax auditors

Its deployment on the premises of DGFIP is part of the PILAT project launched in 2018 to modernize the tax control system. The March 11 decree describes this new weapon in the fight against fraud. “A visualization tool, at the national level, on the one hand, of existing links between professional organizations (participation links), and between professional entities and natural persons (links to directors, partners or shareholders) and on the other hand, the contextual context of these individualsThis makes it possible to collect data such as Galaxy Reference Tax income, spouse’s identity or even tax liability for individuals.

45% of checks targeted by artificial intelligence

In 2021, 13.4 billion euros were reported to individuals and businesses and 10.7 billion euros were collected. A level close to the 2019 record (11 billion) that the tax administration largely blames on “using data mining to better target tax audits”, where the share of audits targeted by artificial intelligence and data mining was about 45% last year, 2020- Compared to 32.5% and 21.95% in 2019. For 2022, it expects 50% targeted checks for AI

The tax authorities do not hide their intention to “increase the use of artificial intelligence”. And not just to fight fraud. Since March 2021, the deployment of digital assistants has made it possible to process the accounting posting of bank transfers obtained automatically in the collection of fines, and thanks to agents for improving the results of forced collections to increase the severity of the case. DGFIP.

Also in 2021, the tax administration began using artificial intelligence “to help contact center agents respond to user emails about payment issues”. It has also implemented the “Weak Signals” project, which is based on an algorithm “targeting companies’ vulnerabilities to set up support actions as soon as possible”. The system has made it possible for 23,227 companies to identify problems. Of these, 11,952 were selected for communication and assistance was offered.

Swimming pool detection takes water

On social networks, the identification of swimming pools or undeclared garden sheds is more worrying than fraudulent declarations of inter-interests between single ownership and collection of housing allowances. That is to say if such fraud would be important. But while fraudsters may be temporarily reassured, AI does not automatically detect large-scale detection of swimming pools or garden sheds in a sufficiently relevant way. Fraudsters have speculated, and using the same color tarpaulin as the environment around the camouflage property still works well.

Thus, in the experimental phase, DGFIP’s “Innovative Land” project aims to automatically detect buildings and swimming pools using artificial intelligence that have not been announced from the aerial view. The problem is, at this stage the device tested in nine sections with a 30% error rate will not really be created. The tool will identify, for example, taxable swimming pools when they are above ground swimming pools are not taxable. Unions are also reporting situations where artificial intelligence is seen. “Buildings will be taxed instead of tarpaulins, roads, sidewalks, parking lots, slabs.“Directed by Parisian Frederick Scalbert, representative of the CGT.

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