Artificial Intelligence Reveals a Shortage of 354 Million in Finance Sector
In the heart of Austria, the Predictive Analytics Competence Center (PACC) within the Ministry of Finance is making strides in the fight against tax evasion. Equipped with modern AI techniques, PACC is leveraging machine learning and text mining to analyze millions of tax and compliance cases [1][2].
Last year, this AI-assisted approach generated an additional EUR 354 million in tax revenue for the Ministry of Finance [1][2]. The comprehensive scanning of tax data has made it harder for tax evaders to conceal their activities, improving Austria's tax compliance enforcement.
PACC has reviewed 6.6 million tax cases and 23.4 million compliance cases using AI techniques [1][2]. The AI methods uncover a wide range of tax fraud, from false statements and concealed transactions to fraudulent business structures like shell companies [1][2][3].
One notable example involved an agricultural business that was hiding vehicle sales. Through AI-assisted auditing, these hidden activities were discovered, leading to EUR 300,000 in additional tax claims [1][2].
Finance Minister Markus Marterbauer (SPO) has promised more AI use in the future, with plans to expand AI use further, including generative AI, and to increase cooperation with national and international partners for improved tax fraud detection [1][2].
The success of PACC is attributed to the predictive analytics and machine learning methods of AI, as stated by PACC Director Christian Weinzinger [1][2]. The centre is responsible for uncovering tax evasion cases in employee taxation, income tax, corporate tax, and VAT tax evasion.
Given the budget deficit, tax evasion is particularly painful. By using AI, PACC can uncover significantly more cases than in the past, leading to increased tax revenue and a more secure financial future for Austria. This innovative approach to tax compliance is setting a new standard in the fight against tax evasion.
[1] [Kurier, 2024] [2] [Der Standard, 2024]
The finance ministry's utilization of artificial-intelligence (AI) technology within the Predictive Analytics Competence Center (PACC) has been crucial in boosting Austria's tax revenue, as last year alone, an additional EUR 354 million was generated through this AI-assisted approach [1][2]. The implementation of AI methods in analyzing millions of tax and compliance cases has made it more difficult for tax evaders to conceal their activities, improving tax compliance enforcement [1][2].
