Artificial intelligence,
anomaly detection and Deep Tax
Artificial intelligence (AI)
AI has gained prominence in recent years, but what is AI?
Marvin Minsky has been referred to as the father of AI. He defined AI as:
“The science of making machines do things that would require intelligence if done by men”.
Tax software make many calculations but (understandably) very few decisions.
Anomaly detection
Tax software have error checking and validation that alert the user to data entry that is incomplete, invalid or conflicting.
There is, however, still the potential for unexpected values to be entered or values that deviate from what is expected. There might also be inconsistencies or differences between years that are "excessive". Anomaly detection looks for such exceptions.
Deep Tax
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At PHOENIX TP, we have developed Deep Tax, an application that is powered by AI technology.
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It uses the world’s most powerful tools available.
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Deep Tax makes decisions that optimise the tax position for groups of companies within a single or multi-year timeframe.
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Decisions include claims, elections and allocations at company and group level.
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For example, Deep Tax can quantify and identify the optimal sequence of group relief surrenders where the non-coterminous rules apply.
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Anomaly detection is applied to input data. If data is imported from Alphatax users can also define their own anomaly checks.
Ahead in the tax technology landscape?
Several articles refer to current and future developments in tax technology.
Of particular relevance is "Tax AI in the '20s" produced by FTI Consulting, Tax Technology Advisory
It envisages:
2023 – Anomaly detection
Late 2020’s – Tax AI decision making
The full content can be accessed at https://ftiemea.to/taxAI.
Trust in the AI technology
The AI technology used by Deep Tax is proven, well established and used on a daily basis.
It is not a "black box" technology but a technology that offers a high degree of transparency and interpretability. Analysis of the results can quickly demonstrate how and why certain decisions are made.
An excellent article that discusses this topic was published by Forbes, August 2021.
Results produced by Deep Tax have been exceptional and have identified highly significant tax savings. In all cases the results have been checked and validated.