In a recent panel discussion on the sidelines of the World Economic Forum in Davos, Federal Finance Minister Christian Lindner revealed his plans to revolutionize the German tax system through the use of artificial intelligence (AI). According to Lindner, AI could help understand the tax system better than human intelligence.
AI as a source for legislation
Similar to the process of writing computer code, Lindner suggests using AI to propose new legislation. Although the final decision remains the responsibility of Parliament and policymakers, AI could provide the draft of these regulations.
Artificial intelligence should make tax returns easier
The Federal Minister of Finance goes even further and plans to make personal tax returns easier using AI. The prerequisites for this should be created in the software for electronic tax returns (Elster). Lindner imagines that the AI software will automatically summarize all expenses and receipts in order to present the tax return at the push of a button.
Opportunities of automation
The integration of artificial intelligence (AI) into tax returns promises significant advantages. Automating processes can achieve cost efficiencies and provide significant time savings for taxpayers. AI-based plausibility checks and warnings have the potential to minimize tax evasion by identifying discrepancies and suspicious patterns early on. In addition, the precision of AI helps to minimize human errors in complex calculations and assignments.
AI in customs: Lindner’s vision for the future
Christian Lindner announced that he would also use AI in customs administration. A newly founded AI competence center in the Ministry of Finance is looking for applications to, for example, simplify the declaration of goods at customs. Lindner humorously referred to a recent incident with Arnold Schwarzenegger to illustrate how AI can effectively help in such situations.
