From AI in Tax Management to the Competitive Advantages of Transparent Businesses

Artificial Intelligence (AI) is infiltrating tax management processes, from screening declarations and reconciling electronic invoices to forecasting risks and simulating fraud behaviors. As tax authorities shift from a “reactive” to a “proactive” approach, transparent businesses not only reduce compliance friction but also unlock undeniable business advantages.

How is AI Transforming Tax Governance?

The OECD’s annual report notes that 65% of global tax authorities have integrated or piloted GenAI into monitoring and auditing, aiming to save time, reduce errors, and enhance budget collection efficiency. A Thomson Reuters survey from early 2025 also shows a rapid increase in the proportion of tax/accounting departments using enterprise-level GenAI compared to 2024, reflecting the trend toward automating repetitive tasks and analyzing large-scale data.

In addition to supporting taxpayers through chatbots/assistants, AI is increasingly used for risk-based audit “scoring,” estimating recoverable revenue, and optimizing the allocation of inspection resources. In the US, the IRS recorded over $4 billion in recoveries during fiscal year 2024 by using AI to detect and prevent potentially fraudulent refund claims—while also warning of cybercrime risks involving AI impersonating taxpayers.

Applications and Directions in Vietnam

Some localities have piloted virtual assistants to support tax procedures, encouraging electronic tax filing. At the central level, tax authorities are researching the exploitation of GenAI on electronic invoice data to detect anomalies in pricing, circular transaction chains, and refund risks. The overall direction is to build a sufficiently large and secure data infrastructure to train analytical models, facilitating a gradual shift to data-driven management.

What Benefits Do Transparent Businesses Gain?

First, reduced probability of in-depth audits. When risk-scoring systems operate effectively, “clean and compliant” profiles typically process faster, while anomalies (intentional or unintentional) are flagged early for resolution. For businesses that have standardized data and processes, the risk of being selected for audits decreases significantly.

Second, optimized working capital. The consistency of invoices and documents enables smoother reconciliation, refund/deduction processes, faster cash recovery, and lower opportunity costs of capital.

Third, enhanced credibility with investors/partners. In the context of supply chains increasingly imposing electronic compliance conditions, businesses demonstrating high transparency can reduce “risk premiums” in credit negotiations, M&A deals, or contracts with enterprise customers.

Fourth, shortened due diligence time. Machine-readable data with clear audit trails allows funds/partners to evaluate quickly, reducing reservations clauses and shortening transaction closing times.

Steps to Become “AI-Ready” in Tax

Standardize Data. Establish master data standards (for partners, goods, tax rates), attach metadata to invoices/documents; eliminate duplicates and gaps; unify rules for recognizing revenue/expenses according to standards.

Connect Systems. Integrate ERP/accounting with electronic invoice platforms; build business rules to automatically flag anomalous transactions; ensure access controls and audit logging.

Compliance Culture and Data Literacy. Enhance “data literacy” for finance-tax teams; incorporate KPIs on data quality and timely reporting; conduct periodic simulated audit/inspection drills.

Policy Framework to Support Implementation

For sustainable AI application in taxation, experts emphasize three requirements: (i) a clear roadmap for tax management reform, prioritizing investment in data infrastructure; (ii) standards for protecting personal/business data; (iii) coordination mechanisms between state agencies, technology companies, and research institutions to ensure both effectiveness and AI ethics.

Conclusion. AI is shaping a new “standard of transparency” in tax management. For businesses, this is an opportunity to turn compliance into an advantage: reducing risks, improving cash flow, boosting credibility, and shortening due diligence. Practical steps should start with data standardization, system integration, and process discipline—the “foundations” that help businesses stay one step ahead as tax authorities increasingly digitize.