Examining the Role of Artificial Intelligence in Auditing for Tax Gap Reduction

Abstract

Effective tax collection is one of the most important problems facing governments and the cornerstone of a fair tax system. It is essential to prevent the loss of uncollected tax revenues due to non-compliance resulting from tax avoidance and evasion practices. The research aims to highlight the use of artificial intelligence in auditing to address the challenges facing tax administrations and to demonstrate how to deal with and reduce the problem of the tax gap, given its clear impact on lost tax revenues for the benefit of the state's public treasury. This is achieved by relying on the descriptive analytical approach based on describing the use of artificial intelligence techniques in auditing and analyzing its benefits, as it has become an integral part of the routine procedures required by tax administrations in order to decrease the tax gap, protect lost revenues through tax evasion, and achieve justice. In addition, the statistical analysis method is adopted to demonstrate the nature of the relationship between the independent and dependent research variables according to a questionnaire designed from two axes and distributed to a purposive sample of (80) estimators and auditors working in tax administrations. The results of the hypotheses were tested according to the statistical program (SPSS). The value of the research was represented in the results reached, the most prominent of which is the existence of a significant correlation between the use of artificial intelligence in auditing and reducing the tax gap. This confirms the significant role of using artificial intelligence techniques in auditing as an effective means of raising the efficiency of tax administration By simplifying procedures, improving the work environment, increasing employee satisfaction, and enhancing the effectiveness of tax collection, the study concluded that tax administrations must invest resources in developing and adopting modern artificial intelligence technologies, including data analysis programs, machine learning systems, and expert systems. There is also the need to establish clear regulatory policies to ensure the ethical and safe use of AI technologies while protecting taxpayer data.