The recent bill 41177/L/24, presented in the Legislature of the Province of Córdoba and approved in its first reading, proposes significant modifications to the Provincial Tax Code (Law No. 6006 TO 2023). These incorporate the use of artificial intelligence (AI) and information and communication technologies (ICTs) in tax processes.
Below, we analyze these proposals and their impact on transparency, human control, and taxpayer rights.
The changes driven
The changes proposed in the draft amendment to the Tax Code seek:
- Promotion of the use of technological systems: Promote the development and implementation of programs and systems that help and guide citizens in real time regarding administrative procedures.
- Human intervention guarantee: In debt determination processes that use AI, it is established that the final decision must be made and validated by a person, thus ensuring human control in important tax decisions.
- Right to information: Taxpayers must be informed when, during an ex officio determination process, AI tools are used. In addition, the objective criteria that the model applies to their specific situation must be explained to them. This also applies when the administrative judge uses AI to estimate the taxable matter ex officio.
- Use of AI in tax estimates: The tax administration may define models and algorithms that, using AI, allow the verification of taxable facts and provide the administrative judge with sufficient elements to estimate the taxable matter ex officio.
Analysis of the modifications
The promotion of technological systems that assist citizens in real time represents progress in simplifying administrative procedures. This facilitates access to information and services, improving the taxpayer experience. The implementation must take into account those groups of taxpayers who, due to their age or personal conditions, have limitations for the use of these technologies.
Regarding the incorporation of AI into the tax procedure, it is essential that the final determination of debts be validated by a person, in this case a competent official. This provides legal certainty and holds the tax administration responsible for the decision made.
The possibility for the administration to use models and algorithms to verify taxable events and estimate the taxable matter ex officio can improve the detection of irregularities and increase collection. However, it is vital that these algorithms are transparent and do not contain biases that unfairly disadvantage certain taxpayers.
The use of AI must be accompanied by strong rights and guarantees for taxpayers; Therefore, it is correct that the regulatory framework establishes that taxpayers must be informed when AI is used in their audit process and that they also have the right to know the objective criteria applied. This transparency is crucial so that they can properly exercise their right to defense and ensure their constitutional rights.
Conclusion
The incorporation of artificial intelligence and advanced technologies in tax administration must be supported by a solid legal framework that protects the rights of taxpayers.
It is essential to ensure transparency and maintain human control in decisions that affect tax obligations.
Within this conceptual framework, the province of Córdoba is once again positioned as the first jurisdiction to achieve significant and concrete progress in this direction, consolidating itself as a positive reference and a model to follow for the rest of the tax administrations.
It is essential to remember that regulation must ensure that technological innovation is used in strict compliance with constitutional guarantees.
Luciano Vernetti. Tax Lawyer.
Sebastian Perlati. Accountant and professor of the Public Accounting career at the Blas Pascal University and postgraduate at the Faculty of Economic Sciences of the National University of Córdoba.
Source: Ambito
