AI-Powered Audits Put Tax Disputes on a New Trajectory

The Big Picture: Tax authorities are under heavy pressure to squeeze more revenue from a shaky global economy, and they’re turning to artificial intelligence to do it. In a recent ITR podcast, four CMS partners said smarter, data-driven audits are already reshaping how multinationals prepare for controversy.

The Details:
Inflation, geopolitical flare-ups, and what CMS’s Nicola Hine called “a continued need for revenue” have governments hunting for every taxable penny.
Massive new reporting rules mean tax agencies are swimming in information. Jonathan Johansson of CMS Wistrand noted that AI now lets them “process that information and utilise it more efficiently,” pinpointing audit targets with surgical precision using data analytics rather than traditional paper trails.
* The result: expect broader audit scopes, faster assessments, and litigation that leans heavily on data analytics rather than paper trails.

Why It Matters / What They're Saying: The reaction from advisors is clear: traditional defensive playbooks need an upgrade. “Taxpayers may have to refine their approach in staving off tax controversy,” the podcast warned, urging companies to stress-test positions before the algorithm knocks.

Around the Tax World

Sweden raises the bar for work permits. A government agreement would lift the minimum salary from 80% to 90% of the median wage, about SEK 33,390 a month, and tighten family-reunification rules (KPMG).
China sweetens profit-reinvestment incentives. Beijing’s new “Tax Credit Policy” grants foreign investors deferred withholding tax when they plough dividends back into Chinese ventures, part of a raft of hikes and breaks charted in the latest Asia Tax Bulletin.
Barbados climbs the transparency ranks. The OECD’s eighth peer review praised the island’s country-by-country reporting of multinationals, saying Barbados is now exchanging information “appropriately” (Nation News).
Steel tariffs sound the alarm in the UK. Industry groups warn that the EU’s planned 50% levy on excess imports could spark the sector’s “biggest crisis yet,” slamming a £3 billion export channel (ICAEW summary).

By the Numbers

Tax Stat of the Day: 90%, the slice of Sweden’s median salary that migrants will need to earn to snag a work permit under the new proposal, up from 80% today.

Looking Ahead

All eyes are now on Stockholm’s final legislative package and the rollout date. Meanwhile, in audit trenches worldwide, taxpayers are racing to fortify files before AI-guided examiners come knocking.

Prepared by MyTax - mytax.com.ng

AI-Powered Audits Put Tax Disputes on a New Trajectory

Around the Tax World

Sweden raises the bar for work permits. A government agreement would lift the minimum salary from 80% to 90% of the median wage, about SEK 33,390 a month, and tighten family-reunification rules (KPMG).

China sweetens profit-reinvestment incentives. Beijing’s new “Tax Credit Policy” grants foreign investors deferred withholding tax when they plough dividends back into Chinese ventures, part of a raft of hikes and breaks charted in the latest Asia Tax Bulletin.

Barbados climbs the transparency ranks. The OECD’s eighth peer review praised the island’s country-by-country reporting of multinationals, saying Barbados is now exchanging information “appropriately” (Nation News).

Steel tariffs sound the alarm in the UK. Industry groups warn that the EU’s planned 50% levy on excess imports could spark the sector’s “biggest crisis yet,” slamming a £3 billion export channel (ICAEW summary).

By the Numbers

Tax Stat of the Day: 90%, the slice of Sweden’s median salary that migrants will need to earn to snag a work permit under the new proposal, up from 80% today.

Looking Ahead

Prepared by MyTax - mytax.com.ng