Congratulations to Preetika Joshi, Assistant Professor in Accounting, who has been awarded the 2021 FRQSC New Academics Grant (Soutien à la recherche pour la relève professorale) for her project titled “Does Artificial Intelligence and Machine Learning Improve the Tax Enforcement Function?” (L’intelligence artificielle et l’apprentissage automatique améliorent-ils la fonction de mise en recouvrement de l’impôt ?”)
The emergence of new technologies, increased digitalization and the unprecedented flow of information is reshaping the economy by creating new products, services, and business models. This is causing governments around the world to closely examine the deployment of new technologies and delivery approaches to improve the effectiveness and efficiency of the tax enforcement function. Consistent with this view, the use of artificial intelligence applications by tax authorities has significantly increased in recent years, with 53 percent of tax agencies reporting that they used some form of artificial intelligence in their detection and enforcement work. Despite the growth in popularity of these tools, little is known about their effect on the tax enforcement function. This project will assess this question using a cross-country data set that exploits over-time and cross-country heterogeneity in the implementation of artificial intelligence applications by tax administrations.