Can AI expose tax loopholes? Towards a new generation of legal policy assistants
This addresses tax policy issues for governments and society, but it is incremental as it builds on existing methods in a specific domain.
The study tackled the problem of tax loopholes and avoidance by introducing a hybrid prototype system that integrates a natural language interface with a domain-specific language for planning, demonstrating its ability to expose such schemes in a case study.
The legislative process is the backbone of a state built on solid institutions. Yet, due to the complexity of laws -- particularly tax law -- policies may lead to inequality and social tensions. In this study, we introduce a novel prototype system designed to address the issues of tax loopholes and tax avoidance. Our hybrid solution integrates a natural language interface with a domain-specific language tailored for planning. We demonstrate on a case study how tax loopholes and avoidance schemes can be exposed. We conclude that our prototype can help enhance social welfare by systematically identifying and addressing tax gaps stemming from loopholes.