The Revenue Agency in Italy has integrated advanced digital tools, including big data analysis and artificial intelligence (AI) algorithms, into its tax evasion risk assessment processes. This initiative aims to enhance the reliability of taxpayer evaluations while strictly adhering to privacy and confidentiality standards.
Tax audits using artificial intelligence in Italy
Public
Italy
Author: Nikolina Basic
Category:
Fiscal subject related
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123
Content accuracy validation date:
16.08.2024
Content accuracy validation time:
08:24h
Tax authorities clarified that the outputs from risk analysis activities are not directly used to create tax measures. Instead, they are forwarded to control structures for further evaluation. These structures then decide on potential investigation activities, conducted in full compliance with the adversarial principle, recently reinforced by Article 6bis of the Taxpayer's Rights Statute. The AI algorithms employed by the Revenue Agency are designed to be explainable, non-discriminatory, and transparent. Only one organizational structure within the agency is authorized to implement predictive algorithms, staffed by professionals with expertise in engineering, econometrics, statistics, and physics.
To ensure the correct use of data, the Tax Office adheres to international standards such as ISO/IEC 27000 and the GDPR (General Data Protection Regulation). Agency staff are restricted to using only the IT applications and databases necessary for their tasks, following principles of necessity, relevance, non-excess, and minimization of personal data processing.
All system accesses are meticulously tracked, with the Mistral computer application identifying and reporting potentially unusual accesses to facility managers. For all risk analysis activities, a Data Protection Impact Assessment (DPIA) is conducted. Financial report archives are particularly safeguarded through pseudonymization techniques, organizational segregation, and other protective measures. This comprehensive approach underscores the Revenue Agency's commitment to leveraging digital tools for enhanced tax compliance while maintaining stringent data privacy and security standards. The tax databases are interoperable with those of other administrations and public bodies, including the Guardia di Finanza.
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