Spain’s proposed ‘AI secrecy law’ is putting transparency, taxpayer rights and algorithmic accountability at the centre of Europe’s tax debate
From detecting tax fraud to selecting taxpayers for audit, artificial intelligence is reshaping tax administration across Europe. Yet AI is only part of the story. Its growing influence depends on something less visible but equally significant: the vast quantities of taxpayer data that governments increasingly collect, combine and analyse.
According to the OECD, more than 70 per cent of tax administrations now use AI in compliance management and taxpayer services, with machine learning and generative AI becoming central to risk assessment, audit selection and internal operations.
The organisation says these technologies can improve efficiency, strengthen compliance and reduce administrative burdens, provided they are accompanied by robust governance, transparency and human oversight.
As governments invest in more sophisticated digital tools, the debate is expanding beyond AI itself to the data that powers it and the safeguards needed to ensure public confidence.
