Ruled by Algorithms: The Use of ‘Black Box’ Models in Tax Law

'Black Box': Tax Notes International Article

A full investigation on the acceptability and legality of this model in tax law

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In this Tax Notes International article, Aleksandra Bal, Vertex Senior Product Manager and VAT expert, evaluates the use of “black box” models as part of EU data protection and human rights legislation, focusing on a new Polish algorithm-supported system to detect fraud.

As the use of automated decision-making systems rises, Aleksandra provides insight in how artificial intelligence (AI) provides opportunities to do things better, cheaper and quicker for tax administrations and taxpayers.

In the article, Aleksandra answers the following questions and more:

  • What are the basic concepts of AI?

  • How do algorithms detect value added tax (VAT) fraud?

  • How is algorithmic decision-making impacted by the General Data Protection Regulation (GDPR)?

Detailed information on the use of “black box” models in tax law is also provided.