To combat revenue losses and underreporting of taxes, the Chartered Institute of Taxation of Nigeria (CITN) has emphasised the need for artificial intelligence (AI) adoption in tax administration.
Speaking at the maiden ICT summit on taxation in Abuja recently, the pioneer Director General of the National Space Research and Development Agency (NARSDA) and senator, Robert Ajayi Boroffice, highlighted AI’s potential to revolutionise tax compliance.
“AI-driven tax compliance systems analyze vast amounts of tax data in real-time, identifying inconsistencies, fraudulent activities, and underreporting. By using machine learning, AI can detect tax fraud and evasion patterns more accurately than traditional audits,” he stated.
Boroffice further pointed out that advanced economies are already leveraging AI to improve tax compliance.
“Countries like the United States (IRS AI system) and the UK (HMRC AI-driven audits) are already leveraging AI to increase compliance and detect tax fraud more efficiently,” he said.
He highlighted the core importance of taxation, describing it as more than just a tool for revenue collection but a fundamental pillar of economic governance.
