Tax Compliance: Development of Artificial Intelligence on Tax Issues

The development of robotic technology, especially AI, is able to forecast and present statistical analysis for almost all purposes, including taxes. This study aims to explore the various breakthroughs presented that helped managers and policymakers determine alternatives to improve corporate tax compliance by the qualitative method. The results of this study showed that the implementation of AI has been adapted quite a lot, but it is still not enough, especially in measuring the right tax compliance model for the manufacturing industry, which is the largest tax contributor in Indonesia. AI is said to help managers make more complex judgments with simulated risks. Early detection of tax fraud, leakage of year-end tax shocks, and misuse of tax costs can be minimized by AI optimization. However, there is a discussion about this AI threat on the security aspect that needs to be understood, so that the AI optimization strategy in taxes can mitigate the level of tax audit risk. The recommendation for next study is the exploration of ultimate expectations of corporate tax compliance are apparent. Keywords: artificial intelligence, development, tax issues, digitalization, manufactur

Will Robots Agree to Pay Taxes? Further Tax Implications of Advanced AI

Will Robots Agree to Pay Taxes? Tax Ideology meets Advanced AI Brett N. Bogenschneider, PhD, JD, LLM Assistant Prof. Accounting & Taxation* Introduction a. Should robots pay taxes? Or, Will robots agree to pay taxes? b. Positing advanced AIs will engage in tax structuring (manipulation of the tax base) *Explanation of preference for income tax systems due to automatic efficiency gains therefrom c. Positing “tax actualing” by advanced AIs will supplant current methods of economic modelin

A Macroeconomic Taxation Model for an Islamic Economy

Present day Islamic states are called for performing many functions like the ones stated by Siddiqi (1986). He has given a long list of functions, which are to be performed by the present day Islamic states. He has classified them into the following three-broad categories: 1. Functions permanently assigned by Shariah. 2. Functions derived on the basis of ljtihadi for the present situation. 3. FUllctions assigned to the state by the people through the process of Shura (i.e. consultation). Performance of these functions is only possible if enough resources are available to the present day Islamic states. Under the circumstances the present writer is of the view that for satisfying the revenue needs of the present day Islamic states, there is no way out except to resort to new taxes in addition to the traditional taxes. Some Muslim jurists of the medieval period of Islamic history especially AIGhazali (1937) and AI-Shatibi (1914) have, permitted that additional taxation can be resorted to if the needs, particularly the defence needs, of the state require so. Some Fuqaha [AI-Qardawi (1980)J have also laid down certain conditions for levying of additional taxes. These conditions are briefly stated below

Tax Theory & Feral AI

This essay is a sci-fi thought experiment about the significance of personhood in income taxation, meant to explore the validity of currently prevailing justifications for the tax

Will Robots Agree to Pay Taxes? Further Tax Implications of Advanced AI

An initial policy concern from rapid automation was that if robots continue to substitute for human workers, then a fiscal policy crisis may result as tax revenues decline during a period of rapid automation. That first problem arises because the tax system has been intentionally designed not to tax capital assets, such as robots, or at least not to tax them to the same degree as human labor. A second problem also exists: advanced artificial intelligence (“AI”) may soon have the ability to engage in factual structuring as a means of direct tax avoidance. This direct tax avoidance planning by advanced AIs could further erode tax receipts because an advanced AI also has the potential to formulate its own version of “social norms” in respect of tax compliance. Furthermore, an alternative method to tax ideology to formulate tax policy may also arise from AI referred to here as “tax actualing,” where an advanced AI with a sufficient set of data in respect of cash flows through the economy uses data to make accurate predictions and to thereby supersede current methods of economic modeling. Various critiques of proposals for robot taxation are also addressed here including supposed: (1) productivity losses on taxing robots, (2) additional complexity inherent to all of the robot tax proposals, (3) difficulty in identification of “robots” as capital, and (4) inability to capture benefits from capital assets. Finally, an advanced AI is likely to prefer a tax system which maintains its ability to obtain tax deductions for incremental capital investment. Since higher income tax rates are strongly associated with rapid economic growth in nearly all human societies—past, present, and by all indications, future—it is likely that artificial intelligences will voluntarily choose to assess income taxes upon themselves at high rates as a means to encourage capital re-investment

Sorting into Outsourcing: Are Profits Taxed at a Gorilla's Arm's Length?

This article analyzes profit taxation according to the arm's length principle in a new model where heterogeneous firms sort into foreign outsourcing. We show that multinational firms are able to shift profits abroad even if they fully comply with the tax code. This is because, in equilibrium, intra-firm transactions occur in firms that are better than the market at input production. Transfer prices set at market values following the arm's length principle thus systematically exceed multinationals' marginal costs. This allows for a reduction of tax payments with each unit sold. The optimal organization of firms hence provides a new rationale for the empirically observed lower tax burden of multinational corporations

A System for Distributed Mechanisms: Design, Implementation and Applications

We describe here a structured system for distributed mechanism design appropriate for both Intranet and Internet applications. In our approach the players dynamically form a network in which they know neither their neighbours nor the size of the network and interact to jointly take decisions. The only assumption concerning the underlying communication layer is that for each pair of processes there is a path of neighbours connecting them. This allows us to deal with arbitrary network topologies. We also discuss the implementation of this system which consists of a sequence of layers. The lower layers deal with the operations that implement the basic primitives of distributed computing, namely low level communication and distributed termination, while the upper layers use these primitives to implement high level communication among players, including broadcasting and multicasting, and distributed decision making. This yields a highly flexible distributed system whose specific applications are realized as instances of its top layer. This design is implemented in Java. The system supports at various levels fault-tolerance and includes a provision for distributed policing the purpose of which is to exclude `dishonest' players. Also, it can be used for repeated creation of dynamically formed networks of players interested in a joint decision making implemented by means of a tax-based mechanism. We illustrate its flexibility by discussing a number of implemented examples.Comment: 36 pages; revised and expanded versio