The Impact of Artificial Intelligence on Tax Law

Artificial intelligence (AI) is redefining tax policy and administration – offering new tools, while requiring legislation and governance that responsibly manage its risks and constrain the power AI puts in the hands of government authorities. The impact of AI in taxation extends to substantive and procedural tax issues as well as the limits imposed on the tax administration’s use of AI by constitutional principles and fundamental and taxpayers’ rights. While AI is already being deployed for tax purposes in many jurisdictions, specific legislation and comprehensive governance frameworks are often lacking. As a result, the manner in which these new challenges are addressed varies widely from country to country and may affect both tax administrations and taxpayers in significantly different ways. The aim of this book is to provide tax authorities, policymakers, courts, taxpayers and tax practitioners with an overview of the impact of AI on taxation across different jurisdictions. The book comprises 39 national reports from countries across the globe as well as three special reports focusing on developed versus developing countries and their approaches to the use of AI in taxation, as well as a special report explaining the technological background that helps understand the functioning of AI-driven tools in this field. These reports are complemented by a general report that synthesizes all national and topical contributions, providing a comprehensive overview of the current state of AI use in taxation and the issues arising from it. The content of the book is the outcome of a conference on “The Impact of Artificial Intelligence on Tax Law” that took place from 3 July 2025 to 5 July 2025 in Rust (Austria). More than 100 experts, including the authors of the national reports, were brought together to discuss recent developments and challenges in the field of AI and tax law.