On 3 May 2023, Alix Perrignon de Troyes, the Executive Secretary of IOTA, represented IOTA at the international professional and academic hybrid conference “Innovations in Public Administration - Big Data and Artificial Intelligence in Tax and Customs” organised by one of the founding members of IOTA, the Hungarian National Tax and Customs Administration, along with the National University of Public Service, in Budapest, Hungary. The conference welcomed a large number of delegates from tax administrations, international organisations, and academia to discuss and assess the latest developments in the digital transformation of taxation and tax administrations.
As one of the opening speakers, Alix Perrignon de Troyes expressed her appreciation and gratitude to the National Tax and Customs Administration of Hungary for their strong and fruitful collaboration with IOTA and stressed the importance of using big data, as well as talking about the implementation of Artificial Intelligence (AI) together with its potential benefits and challenges for tax administrations.
Alix Perrignon de Troyes said “One of the greatest assets Tax Administrations have today is big data and the potential to analyse this data to streamline tax processes and improve tax compliance. Tax administrations, like all large organisations, accumulate enormous amounts of data. The ability to process and analyse this data generated through various sources such as taxpayers, intermediaries, platforms, third parties, digital transactions, social networks, and many other sources is crucial to tax administration operations. However, despite the fact that the importance of the use of big data in predictive analytics and modelling as a tool to increase revenue, detect fraud, and better manage detected tax risks is accepted, the implementation of data-driven intelligent solutions and the process of digitally transforming Tax Administrations can still be challenging”.
She also talked about implementation of AI together with its potential benefits, saying “With the help of AI-powered algorithms, authorities can analyse data to improve their tax policies and identify anomalies that could indicate tax fraud, as they can also automate their taxpayer services. In recent years, many IOTA member tax authorities have successfully implemented AI-powered chatbots or virtual assistants that can answer basic tax-related questions from taxpayers. This system reduces the workload on tax authorities' staff and improves the efficiency of the tax administration process.”
She pointed out that there are issues to address too, adding that “One of the biggest challenges is data privacy. Governments must ensure that the data collected from European taxpayers is protected and used only for legitimate purposes in compliance with the General Data Protection Regulation (GDPR).”
At the end of her remarks, Mrs. Perrignon de Troyes briefly mentioned the IOTA Work Programme, which offers collaborative activities that build on recent experiences and research to enhance the resilience of IOTA members against future crises and strengthen their digitalisation efforts. Large-scale digital transformations unquestionably require comprehensive multilateral cooperation, and with more than 25 years of experience IOTA provides an excellent platform for its members to share good practice along with the lessons they have learned along the way.
She also took the opportunity to draw the audience’s attention to the IOTA’s flagship event, the 27th General Assembly in Tbilisi, Georgia, from 27-29 June 2023. The main theme this year is “Transformation of International Tax System and Tax Administrations.” During the Technical Session of the event, IOTA will focus on the changes in international law, technology, and business models that are causing unprecedented challenges to Tax Administrations as they adapt to the digital world.
Registration for the 27th General Assembly is still open, and we warmly invite you to join this important event. More information about the event and how to register can be found via this link.