AI and the Future of Tax Law: Rethinking Compliance, Governance, and Legal Design

Across four panels held over two half days, participants explored the rapidly expanding use of AI in tax compliance, enforcement, and taxpayer services. Discussions ranged from practical applications (such as real-time risk analysis, automated VAT classifications, and data-driven compliance monitoring) to broader normative and legal concerns, including good faith and administrative mistakes, taxpayers’ rights, transparency, proportionality, and the risks of fundamental rights violations.

The first day focused on AI in public and tax administration and its practical implementation. Speakers analysed why tax authorities deploy AI, how these systems affect democratic governance and due process, and how international organisations such as CIAT support tax administrations on their digital journey. Business and policy perspectives highlighted both the promise of AI-driven efficiency and the challenges posed by data quality, legal complexity, and the growing role of private technology providers, prompting calls for open models and open data in tax compliance.

The second day shifted attention to the implications of AI for tax law-making itself. Panels examined whether tax law should become more “AI-friendly”, the limits of automating legal norms, and the tension between rigid rules and flexible standards. Contributors debated whether increasing automation inevitably pushes tax law toward simplification, how proportionality and constitutional boundaries constrain algorithmisation, and what role courts and human discretion should play in an increasingly digital tax state. Psychological perspectives and reflections on the digitalisation of the judiciary further enriched the discussion.

Throughout the conference, a recurring theme was balance: between efficiency and the rule of law, innovation and accountability, automation and human judgment. The lively exchanges underscored that AI not only changes how tax laws are enforced, but may also influence how they are drafted, interpreted, and communicated in the future.

The organisers of the conference thank all speakers and participants for their insightful contributions. The Maastricht Centre for Taxation (MCT) looks forward to continuing the conversation on how AI can reshape tax systems while safeguarding fundamental rights and public trust.

View the full programme of the conference.