Fight against tax evasion New trick Law government uses AI to recover more than 700 million euros in taxes

According to the European Times, the French Ministry of Economy announced that the amount of tax evasion in France in 2019 will reach 785 million euros, up 130 percent from 342 million euros in 2018, bringing the total tax revenue in France to more than 9 billion euros in 2019, thanks to improved audit tax information algorithms. The figure is reported to be derived from France’s 2019 tax report. The report was submitted to Prime Minister Philippe, Justice Minister Berube and Public Accounts Minister Damanan on the 17th.

The report notes that the introduction of artificial intelligence algorithms by the French tax authorities two years ago is now bearing fruit. In 2019, aia has selected 100,000 suspicious declarations, and the tax authorities have collected a total of 785 million euros in taxes and penalties. France’s economy ministry, which spent 20 million euros a year ago to strengthen its tax-inspection information tools, now looks worth it.

This algorithm compares tax payer’s bank, tax, real estate, social security, social subsidies, and corporate patent and trademark data to identify possible irregularities, such as companies concealing turnover, deliberately underestimating the value of real estate, suspicious cash flow of bank accounts, and so on.  The artificial intelligence algorithm, called CFVR, means “locking fraud and assessing applications”, which started with 500 companies in France and then expanded to 3,700 taxable households.

France also uses this “data mining” technology to exchange information with other countries and regions, especially the so-called “tax haven”.

The French tax authorities examined 450 accounts in 2019 and 4,000 people were ordered to pay back taxes, the report said. In addition to “data mining” technology, France is also preparing to include social media and some platforms of websites involved in private economic transactions in an attempt to find evidence of alleged tax evasion.