Indirect Tax Forum 2024: AI to have ‘very important’ compliance impact
International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX
Copyright © Legal Benchmarking Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Indirect Tax Forum 2024: AI to have ‘very important’ compliance impact

53755072149_549e43f58e_6k.jpg
Isabella Barreto was speaking at ITR’s Indirect Tax Forum in London

AI will be influential in compliance work but shouldn’t be blindly trusted, an in-house tax expert argued at ITR’s flagship indirect tax event

AI will have a very important impact on compliance but it will likely face teething issues, an in-house tax manager predicted at an ITR conference in London.

Isabella Barreto, group tax manager at payment infrastructure provider Paddle.com, made the prediction while speaking at ITR’s Indirect Tax Forum 2024 in London.

She was a panellist on the ‘Harmonising indirect tax across Europe’ panel at the event, which took place on May 21.

Also on the panel were Taxback International chief tax and compliance officer Lisa Dowling, Rackspace International senior tax manager Elena Gonzalez and FTI Consulting indirect tax managing director Nurena Tarafder.

Tarafder asked whether new emerging technologies like AI and blockchain will address difficulties concerning compliance across the EU within the next decade.

In response, Barreto said she sees that happening but emphasised that the future of such technology is uncertain.

“Even the best ideas take forever to implement and are going to find a lot of policy challenges and GDPR issues and what not,” she added.

Barreto said she imagines AI taking over repetitive taxes in the future, and gave compliance as another example of work likely to be simplified by AI.

However, she warned against placing too much stock in AI solutions.

Barreto said: “AI hallucinates, and we should not trust it with everything.”

She added: “But it does a pretty satisfactory job identifying patterns and repeating processes.

“It’s definitely going to have a very important impact in everyone’s compliance regimes and processes.”

Also during the discussion, Barreto explained why she finds tax to be an interesting field to work in.

She said: “[In] our job…we have to constantly translate new information and keep it up to date. We have to keep tracking all of the VAT registration thresholds, all of the VAT rates.

“Like any little, small change in legislation might affect us greatly. And this is all why our profession is interesting.”

Barreto added: “At the very beginning Nurena [Tarafder] mentioned sovereignty. And whenever someone says that tax is boring, I judge them very harshly because I think that tax is a measure and show of sovereignty of each state.

“And it is a challenge to harmonise it, which is why we’re all here brainstorming.”

Other panels at the event included ‘Gaining efficiency in a postponed ViDA environment’ and ‘Managing customs challenges through Europe’.

more across site & bottom lb ros

More from across our site

As German clients attempt to comply with complex cross-border rules, local advisers argue that aggressive tax authorities are making life even harder
Based on surveys covering more than 25,000 in-house lawyers, the series provides insights into what law firms must score highly on when pitching to in-house counsel
The UK tax authority reportedly lost a case due to missing a deadline; in other news, Canada has approved pillar two legislation
There will always be multinationals trying to minimise tax by pushing the boundaries of their cross-border arrangements, Rob Heferen claimed
HMRC’s attempts to crack down on fraudulent tax relief claims are well-meaning, but the agency risks penalising genuinely innovative businesses, writes Katy Long of ForrestBrown
Argentina, Brazil, Mexico and South Africa are among the countries the OECD believes could benefit from the simplified TP rules
It comes despite an offshore enabler penalty existing in the UK throughout the entire period
It is extraordinary that tax advisers in the UK can offer their services without having to join a professional body. This looks like it is coming to an end, Ralph Cunningham writes
Meet the esteemed judges who are assessing the first-ever Social Impact Awards
The ‘big four’ firm has also vowed to spend more on nurturing junior talent; in other news, Blick Rothenberg has hired a pair of tax partners
Gift this article