Issues about Artificial Intelligence in the Tax Agency
According to Spanish regulations (RD 817/2023), an AI system is a system designed to function with a certain autonomy and that, based on data provided by machines or people, infers how to achieve objectives based on machine learning, logic and knowledge, finally generating content, predictions, recommendations or decisions that can influence the environment where these AI systems operate.
In contrast, systems that use rules defined solely by people to execute operations automatically are not AI. Therefore, massive data processing, network or graph analysis, risk analysis systems and the robotization or automation of certain actions are not AI, as long as these systems function deterministically, based on rules set by humans, and without using the predictive or generative capabilities of AI
The National Artificial Intelligence Strategy (ENIA) includes among its strategic objectives the incorporation of AI as a factor for improving productivity and effectiveness in the Administration and the operation of public services, as well as in the relationship interfaces with the companies and citizens. This is also reflected in the Digital Plan drawn up by the Ministry for Digital Transformation and the Public Service, also in the context of the promotion of AI in the public sector included in Lever 5 of the ENIA.
The use of AI in the Tax Agency seeks to increase the effectiveness and efficiency of tax and customs actions, prioritizing its use in terms of information and assistance to the taxpayer and in the field of prevention.
The use of AI will help promote and simplify compliance with tax obligations and will promote the quality of the data declared by taxpayers. In this way, many verification procedures that originate from errors made when declaring, can be avoided, and thus also avoid possible regularizations. The use of AI will help tackle these problems at their source, trying to prevent failures to submit returns in the voluntary period, and promoting the solution of deficiencies in the returns when they are submitted.
The Tax Agency has provided itself with a strategy for the use of AI, as well as a methodology for its practical application.
It is about being able to guarantee that the development of AI in the Tax Agency occurs within a framework of security and protection of taxpayers' rights, with rigorous respect for the current legal system and the principles and values that govern all the actions of the Tax Agency.
First of all, it is an AI always supervised by people (it is the 'human in the loop' principle). They are people who will review, question and validate or not the recommendations, suggestions or predictions proposed by the AI system.
People will be present at all stages of the development and use of AI, from the first moment of data collection and verification of its quality; then in the information processing phase, choosing the AI techniques to use in each project, the training process and the quality of the system after training; and, finally, in the monitoring and evaluation of the operation of each project. Ultimately, people will control and be responsible for the operation of the AI system as a whole and in each of its phases.
The AI system in the Tax Agency has a second objective, that of being respectful of people ('human centric' approach), applying ethical principles and transparency in the use of AI. Thus, for example, if the Agency uses AI to interact directly with citizens, it will expressly report this.
The methodology for the practical application of AI in specific Agency projects has the essential function of ensuring the quality and governance of these projects. Because it is a methodology that covers the entire life cycle of the project.
At its origin, the methodology will mark the specification of requirements, the risk analysis and the cybersecurity and data protection measures to be considered, a feasibility analysis, design decisions, validation of results and putting into production.
From that moment on, the same methodology will serve as a guide for the monitoring, evaluation and maintenance of the project that already works in the productive environment.
In each phase of the life cycle of each project, the actors who must participate, the roles they must play and the functions they must perform at each moment are identified. Likewise, the result to be obtained in each of the stages and depending on each project is determined.
And throughout this process, the participation of the competent units of the Tax Agency in matters of security and control is ensured, as well as possible external audits to be carried out by the Spanish Agency for the Supervision of Artificial Intelligence (AESIA).
Any AI system must comply with EU and national data protection regulations in relation to the collection and processing of information.
The Tax Agency will verify that the sources of the data are reliable and contain current, updated and unbiased information.
Next, extreme care will be taken in the cleaning and processing of the data after its collection, before finally being always validated by people.
It will also be verified during the development of each project that the data is complete and represents, in the appropriate proportion, the entire universe on which the AI system will act, that it is accurate and does not contain errors, and that it has the required temporal validity. .
Likewise, work will be done on the prevention, detection and correction of possible biases that may be contained in the data, also guaranteeing the privacy and security of the data used, especially when they may involve personal information.
The Tax Agency has already been taking advantage of the opportunities provided by technological advances in AI to apply them to better develop its mission, which consists of promoting voluntary compliance with tax obligations. Current examples of use in this sense are chatboxes (virtual assistants), some of the personal income tax warning messages for possible errors when modifying the information on work income offered by Renta Web, or the notices offered to potential non-filers of personal income tax. during the period of voluntary submission of the declaration.
The automated administrative actions dictated by the Tax Agency will in no case rest exclusively on the result obtained from an AI system. Under the 'human in the loop' principle, human intervention is always guaranteed, which supervises and validates or not the decisions proposed by the system.
The limitations on the use of AI will be determined by the legal-regulatory framework applicable at all times, under the supervision of the AESIA, as well as by the principles of good use of AI and the Tax Agency's own values.
Currently there is no decisive use of AI in control procedures. There are cases of use in specific management procedures initiated at the request of the taxpayer himself and in which AI-based predictive analyzes are only allowed to have any effective relevance if their proposal is favorable to the taxpayer.
Therefore, there are no AI techniques that are being used for the processing or instruction of inspection or limited verification procedures (managers).
Regarding the taxpayer selection phase, there are massive analysis tools, which are not AI, and that help officials in risk analysis tasks prior to control procedures, their use being limited to automated data processing. which, in any case, must be evaluated by officials together with the rest of the information obtained, before making a decision regarding an inspection verification action.