Current AI applications by Estonian tax authorities and use case scenarios

Artificial intelligence (AI) is revolutionizing tax compliance and fraud detection, offering tax authorities unprecedented opportunities to enhance their efficiency and accuracy. This article explores the AI-based tax technology tools designed and implemented by the Estonian Tax and Customs Board in...

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Main Authors: Künnapas Kaido, Maslionkina Palina, Hinno Risto, Liberts Raivis
Format: Article
Language:English
Published: Sciendo 2025-03-01
Series:TalTech Journal of European Studies
Subjects:
Online Access:https://doi.org/10.2478/bjes-2025-0010
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author Künnapas Kaido
Maslionkina Palina
Hinno Risto
Liberts Raivis
author_facet Künnapas Kaido
Maslionkina Palina
Hinno Risto
Liberts Raivis
author_sort Künnapas Kaido
collection DOAJ
description Artificial intelligence (AI) is revolutionizing tax compliance and fraud detection, offering tax authorities unprecedented opportunities to enhance their efficiency and accuracy. This article explores the AI-based tax technology tools designed and implemented by the Estonian Tax and Customs Board in its daily operations. It analyses three main applications of AI: language models to assist taxpayers in their searches, network models to uncover connections between entities and individuals, and X-ray imaging systems to identify the nature of goods in packages for customs purposes. These technologies aim to assist taxpayers in understanding their rights, while simultaneously preventing and detecting tax fraud. Beyond the technological aspects, this discussion addresses the contributions of these tools to the legal sphere and their compatibility with the proactive law approach.
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publishDate 2025-03-01
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series TalTech Journal of European Studies
spelling doaj-art-9f278fbd2dd04fe5915a08c6b97e16b12025-08-20T03:09:52ZengSciendoTalTech Journal of European Studies2674-46192025-03-0115117920810.2478/bjes-2025-0010Current AI applications by Estonian tax authorities and use case scenariosKünnapas Kaido0Maslionkina Palina1Hinno Risto2Liberts Raivis31TalTech Law School, Akadeemia tee 3, Tallinn 12626, Estonia, Sorainen Law Firm, Rotermanni 6 Tallinn 10111, Estonia2Sorainen Law Firm, Gedimino pr. 44a, Vilnius 01400, Lithuania3Feelingstream, Mäealuse 2–3, Tallinn 12618, Estonia4Sorainen Law Firm, Krišjaņa Valdemara iela 21, Riga LV-1010, LatviaArtificial intelligence (AI) is revolutionizing tax compliance and fraud detection, offering tax authorities unprecedented opportunities to enhance their efficiency and accuracy. This article explores the AI-based tax technology tools designed and implemented by the Estonian Tax and Customs Board in its daily operations. It analyses three main applications of AI: language models to assist taxpayers in their searches, network models to uncover connections between entities and individuals, and X-ray imaging systems to identify the nature of goods in packages for customs purposes. These technologies aim to assist taxpayers in understanding their rights, while simultaneously preventing and detecting tax fraud. Beyond the technological aspects, this discussion addresses the contributions of these tools to the legal sphere and their compatibility with the proactive law approach.https://doi.org/10.2478/bjes-2025-0010aianti-abusedata protectioninnovationmachine learningproactive lawregulatory compliancerisk assessmenttax advisory
spellingShingle Künnapas Kaido
Maslionkina Palina
Hinno Risto
Liberts Raivis
Current AI applications by Estonian tax authorities and use case scenarios
TalTech Journal of European Studies
ai
anti-abuse
data protection
innovation
machine learning
proactive law
regulatory compliance
risk assessment
tax advisory
title Current AI applications by Estonian tax authorities and use case scenarios
title_full Current AI applications by Estonian tax authorities and use case scenarios
title_fullStr Current AI applications by Estonian tax authorities and use case scenarios
title_full_unstemmed Current AI applications by Estonian tax authorities and use case scenarios
title_short Current AI applications by Estonian tax authorities and use case scenarios
title_sort current ai applications by estonian tax authorities and use case scenarios
topic ai
anti-abuse
data protection
innovation
machine learning
proactive law
regulatory compliance
risk assessment
tax advisory
url https://doi.org/10.2478/bjes-2025-0010
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AT hinnoristo currentaiapplicationsbyestoniantaxauthoritiesandusecasescenarios
AT libertsraivis currentaiapplicationsbyestoniantaxauthoritiesandusecasescenarios