Artificial Intelligence to Expand Tax Net

Finance Minister Asad Umar recently enunciated the amendments to the Finance Bill on in the National Assembly. He also hinted on the use of Big Data techniques as well as Artificial intelligence to find and spot tax evaders. The new govt has been very keen on expanding the tax net for revenue generation.

“Algorithms are now very advanced. Global tax collection agencies don’t rely solely on traditional methods for collection; they use modern technology,” he said. “We want to use anonymized data to run algorithms which will help us identify tax evaders.”

So what is this big data that Asad Umar is referring to? It actually consists of extensive data sets which are analyzed with computational techniques to reveal patterns, behavior and trends especially relating to human practices.

Banks and other financial institutions are already using such techniques to keep track of their progress and to analyze and strengthen the security of the organization again cyber crimes.

Artificial Intelligence will also be incorporated into the sphere to financial institutions solely to identify and to find tax evaders. AI will help predict the odds of tax evasion against any individual based on his behavioral pattern.

Though Mr. Umar did not use the words “AI” and “Big Data” on the assembly floor, the way he explained the algorithms could only be concluded as the use of AI and Big Data techniques. This will drastically change the tax net situation in Pakistan and will expand it by miles. If done right.

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