Calculator with a brain

Why do accountants never play hide and seek? Because it's hard to hide when they always want everything to be balanced.

That reverse logic applies to taxation, too. There is always a hide-and-seek relationship between the tax authority and the taxpayer.

Around the world, governments are working to close gaps, reduce leakages, and ensure everyone contributes fairly. One of the most powerful tools enabling this today is artificial intelligence, or AI.

In countries like the United Kingdom, South Korea, and Estonia, tax authorities are using AI to speed up processes, reduce errors, and improve compliance. Simple but time-consuming tasks such as scanning invoices, pulling figures from documents, or matching declarations across systems can now be completed in seconds. As a result, tax officers spend less time on paperwork and more on informed decision-making.

In Bangladesh, we still rely on a human-driven tax system. That is not a flaw. It reflects the hard work and dedication of our officers who, despite limited resources, keep the system running. But as the economy grows and transactions become more complex, the workload increases significantly. Without the right tools, it becomes difficult to keep pace.

This is where AI can step in as a powerful support.

Imagine a system that quietly reviews tax filings, checks figures against databases, detects irregularities, and flags them for attention. It works without breaks or delays, allowing officers to focus on analysis and judgment rather than routine checks. Audits could then be prioritised based on real-time risk profiles, and assessments could be completed with more clarity and consistency.

AI can also help expand the tax net. Today, a small portion of taxpayers carry most of the burden, while many remain outside the system. This is not always intentional. Many individuals and small businesses are simply left out because the system lacks the capacity to identify and engage them. AI can help by analysing mobile transactions, utility bills, or digital payments to spot economically active but unregistered individuals. These people could then be brought in through information, guidance, and support.

We are not starting from zero. Bangladesh has already made progress with e-TINs, online VAT systems, and electronic return filing. These are meaningful steps. But real transformation will require deeper integration of technology into every part of tax operations, from return processing to audit, enforcement, and dispute resolution.

This shift will not happen through technology alone. We must invest in secure, organised, and connected data systems. Officers and staff will need practical training so they can use these tools with confidence. The goal is not to replace human expertise but to enhance it, allowing professionals to work more efficiently and with greater impact.

There is also a bigger picture. If we can expand the tax base, we can consider reducing tax rates over time. High rates often result from low participation. A wider base would ease the burden on compliant taxpayers and help build a system that feels more balanced and fairer. People are more likely to pay taxes when they trust the system and find it easy to comply.

None of this is possible without the people at the heart of the system. Our tax officers are already doing difficult and essential work. With the right support, their impact could be even greater.

What we need now is not just automation. We need a calculator with a brain, one that can support tax officers, help widen the net, and make compliance easier. A system that is professional, objective, and built to strengthen those who serve it.

The writer is the CEO of Accfintax.