From Tax Law to Tax Code: looking at automated decision-making through a tax law lens

Abstract

AI-driven innovation offers numerous possibilities for the public sector. The potential of digital advancements is already palpable within the tax administrations. Automation is efficiently used for tax assessments, to perform compliance management, to enhance revenue collection and to provide services to taxpayers. A digital transformation encompassing Big Data, advanced analytics and ADM systems promises significant benefits and efficiencies for the tax administrations. It is essential that public organizations meet the necessary legal framework and safeguards to expand the use of these automated systems since its sources of information, technical capacity, and extent of application have evolved.
 
 Using Finland as a case study, this research assesses the use of automated decision-making systems within the public sector. Constitutional and administrative legal principles serve as guidelines and constraints for the administrative activity and decision-making. This study examines the lawfulness of the deployment of ADM systems in the field of taxation by looking its compatibility with long-standing legal principles. Focus if given to the principles of the rule of law, due process, good administration, access to information, official accountability, confidentiality, and privacy. 
 
 Numerous public concerns have been raised regarding the use of ADM systems in the public sector. Scholars, academics and journalists have justifiably pointed out the risks and limitations of ADM systems. Despite the legal challenges posed by automation, this research suggests that ADM systems used to pursue administrative objectives can fit with long-standing legal principles with appropriate regulation, design and human capacity.