Predictive AI and machine learning technologies are revolutionizing the way tax authorities in Europe, including Italy, combat tax evasion and fraud. The Italian Revenue Administrations (Agenzia delle Entrate – AdE) are spearheading the use of these advanced technologies to detect suspicious patterns and tackle tax non-compliance more effectively.
The introduction of state-of-the-art technological solutions such as Artificial Intelligence and Machine Learning is enabling AdE to enhance its risk analysis capabilities, strengthen voluntary compliance, and crack down on tax fraud. These tools allow tax authorities to sift through vast amounts of data to identify potential instances of tax evasion or fraud, such as carousel fraud attempts or misuse of VAT numbers across multiple countries.
One of the key focuses for AdE is the digital transformation of its operations to keep pace with the evolving landscape of tax evasion, which is increasingly sophisticated and challenging to combat using traditional methods alone. By leveraging data-driven approaches, AdE aims to not only improve its risk analysis process but also to enhance the accuracy and effectiveness of detecting non-compliance.
The support provided by the Commission in implementing new data-driven risk analysis approaches is crucial in ensuring the success of this digital transformation initiative. Through a multidisciplinary team of experts and tailored training sessions, AdE is equipped with the necessary skills and tools to leverage advanced technologies in their fight against tax evasion.
The expected results of this project are promising. By streamlining tax evasion risk analysis processes and implementing innovative data-driven approaches, AdE will be able to monitor taxpayer behavior more effectively, increase tax compliance, and reduce the prevalence of the grey economy. Ultimately, this project not only strengthens the resilience of Italy's public finances but also aligns with the broader European Union priorities in digital transformation and improving public administration.
In conclusion, the integration of predictive AI and machine learning technologies into tax enforcement processes represents a significant step forward in the ongoing battle against tax evasion and fraud. With the right tools, skills, and strategies in place, tax authorities like AdE are better equipped to tackle the complex challenges posed by non-compliance in today's digital age.