Current AI applications by Estonian tax authorities and use case scenarios

Künnapas Kaido (), Maslionkina Palina (), Hinno Risto () and Liberts Raivis ()
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Künnapas Kaido: TalTech Law School, Akadeemia tee 3, Tallinn 12626, Estonia, Sorainen Law Firm, Rotermanni 6 Tallinn 10111, Estonia
Maslionkina Palina: Sorainen Law Firm, Gedimino pr. 44a, Vilnius 01400, Lithuania
Hinno Risto: Feelingstream, Mäealuse 2–3, Tallinn 12618, Estonia
Liberts Raivis: Sorainen Law Firm, Krišjaņa Valdemara iela 21, Riga LV-1010, Latvia

TalTech Journal of European Studies, 2025, vol. 15, issue 1, 179-208

Abstract: Artificial intelligence (AI) is revolutionizing tax compliance and fraud detection, offering tax authorities unprecedented opportunities to enhance their efficiency and accuracy. This article explores the AI-based tax technology tools designed and implemented by the Estonian Tax and Customs Board in its daily operations. It analyses three main applications of AI: language models to assist taxpayers in their searches, network models to uncover connections between entities and individuals, and X-ray imaging systems to identify the nature of goods in packages for customs purposes. These technologies aim to assist taxpayers in understanding their rights, while simultaneously preventing and detecting tax fraud. Beyond the technological aspects, this discussion addresses the contributions of these tools to the legal sphere and their compatibility with the proactive law approach.

Keywords: AI; anti-abuse; data protection; innovation; machine learning; proactive law; regulatory compliance; risk assessment; tax advisory (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:bjeust:v:15:y:2025:i:1:p:179-208:n:1010

DOI: 10.2478/bjes-2025-0010

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