Tax Compliance: Development of Artificial Intelligence on Tax Issues
Agustine Dwianika1, a) Irma Paramita Sofia2, and Ika Retnaningtyas3

1-2Universitas Pembangunan Jaya, Jalan Cendrawasih Raya Blok B7/P, Sawah Baru, Kec. Ciputat, Kota Tangerang Selatan, Banten 15413
3Directorate General of Taxes, Ministry of Finance, Jl. Gatot Subroto No.7, RT.7/RW.1, Senayan, Kec. Kby. Baru, Kota Jakarta Selatan, Daerah Khusus Ibukota Jakarta 12190

Abstract

The development of robotic technology, especially AI, is able to forecast and present statistical analysis for almost all purposes, including taxes. The various breakthroughs presented help managers and policymakers determine alternatives to efforts to improve corporate tax compliance. Recently, 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 is possible to mitigate the level of tax audit risk. Ultimately expectations of corporate tax compliance are apparent.

Keywords: Artificial Intelligence, Development, Tax Issues, Digitalization, and Manufacture

Topic: Business, Corporate Governance, and Accounting