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Zenodo
2025
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| Online Access: | https://doi.org/10.5281/zenodo.17649342 |
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| author | Hakkı M. Ay Adnan Söylemez |
| author_facet | Hakkı M. Ay Adnan Söylemez |
| contents | <p>In a developing economy such as Türkiye, pervasive practices like tax evasion, issuance of fraudulent invoices, and the substantial size of the informal economy underscore the critical importance of tax auditing. The shortage of qualified auditors and limitations in institutional capacity have rendered the integration of artificial intelligence (AI) into tax supervision increasingly indispensable. Since not all taxpayers adhere to the principles of tax morality, and given the prevailing perception that substantial income cannot be earned without engaging in tax evasion, AI-based oversight mechanisms have emerged as a necessity rather than a luxury. Artificial intelligence—already utilized across various sectors ranging from healthcare and finance to education and the automotive industry—has recently been adopted in the field of taxation to enhance compliance and enforcement efficiency. In Türkiye, where the tax gap remains considerable, the share of taxpayers subjected to audits is limited to merely 2–3 percent of the total. To address this structural weakness, the KURGAN (Institutionally Supervised Analysis) system was launched on October 1, 2025, by the Ministry of Treasury and Finance as an AI-driven early warning and risk assessment mechanism. KURGAN continuously monitors taxpayers’ financial and commercial transactions in real time, replacing traditional retrospective audit practices with proactive digital analysis. Designed primarily to combat the use of fraudulent documents, the system identifies risky transactions without requiring field visits, relying instead on algorithmic evaluation of vast digital datasets encompassing all purchase and sale activities within the economy. This study explores the global applications of AI in tax administration, the operational logic of the KURGAN system, its advantages and disadvantages, its potential contribution to fiscal revenues, and the legal foundations and regulatory gaps associated with its implementation. In doing so, it situates Türkiye’s experience within the broader discourse on AI-enabled tax governance, assessing how algorithmic oversight can enhance fiscal transparency, reduce compliance costs, and strengthen the integrity of public finance systems.</p> |
| format | Recurso digital |
| id | zenodo_https___doi_org_10_5281_zenodo_17649342 |
| institution | Zenodo |
| language | |
| publishDate | 2025 |
| publisher | Zenodo |
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| spellingShingle | Artificial Intelligence (AI) in Tax Auditing and the KURGAN Application in Türkiye Hakkı M. Ay Adnan Söylemez <p>In a developing economy such as Türkiye, pervasive practices like tax evasion, issuance of fraudulent invoices, and the substantial size of the informal economy underscore the critical importance of tax auditing. The shortage of qualified auditors and limitations in institutional capacity have rendered the integration of artificial intelligence (AI) into tax supervision increasingly indispensable. Since not all taxpayers adhere to the principles of tax morality, and given the prevailing perception that substantial income cannot be earned without engaging in tax evasion, AI-based oversight mechanisms have emerged as a necessity rather than a luxury. Artificial intelligence—already utilized across various sectors ranging from healthcare and finance to education and the automotive industry—has recently been adopted in the field of taxation to enhance compliance and enforcement efficiency. In Türkiye, where the tax gap remains considerable, the share of taxpayers subjected to audits is limited to merely 2–3 percent of the total. To address this structural weakness, the KURGAN (Institutionally Supervised Analysis) system was launched on October 1, 2025, by the Ministry of Treasury and Finance as an AI-driven early warning and risk assessment mechanism. KURGAN continuously monitors taxpayers’ financial and commercial transactions in real time, replacing traditional retrospective audit practices with proactive digital analysis. Designed primarily to combat the use of fraudulent documents, the system identifies risky transactions without requiring field visits, relying instead on algorithmic evaluation of vast digital datasets encompassing all purchase and sale activities within the economy. This study explores the global applications of AI in tax administration, the operational logic of the KURGAN system, its advantages and disadvantages, its potential contribution to fiscal revenues, and the legal foundations and regulatory gaps associated with its implementation. In doing so, it situates Türkiye’s experience within the broader discourse on AI-enabled tax governance, assessing how algorithmic oversight can enhance fiscal transparency, reduce compliance costs, and strengthen the integrity of public finance systems.</p> |
| title | Artificial Intelligence (AI) in Tax Auditing and the KURGAN Application in Türkiye |
| url | https://doi.org/10.5281/zenodo.17649342 |