Tax Technology and Automation
Expert-defined terms from the Undergraduate Certificate in AI for Indirect Tax Management course at Stanmore School of Business. Free to read, free to share, paired with a globally recognised certification pathway.
Artificial Intelligence (AI) #
The simulation of human intelligence processes by machines, especially computer systems. These processes include learning (the acquisition of information and rules for using the information), reasoning (using the rules to reach approximate or definite conclusions), and self-correction.
Automation #
The use of technology to perform tasks without human intervention. In the context of tax technology and automation, this can include the use of AI and machine learning to automate tasks such as data entry, tax calculations, and tax filing.
Big Data #
Large, complex sets of data that can be analyzed to reveal patterns, trends, and associations. In the context of tax technology and automation, big data can be used to identify tax compliance issues, optimize tax strategies, and make more informed decisions.
Blockchain #
A decentralized, digital ledger that records transactions across a network of computers. In the context of tax technology and automation, blockchain can be used to create a secure, transparent, and tamper-proof record of tax transactions.
Data Analytics #
The process of examining data sets to draw conclusions about the information they contain. In the context of tax technology and automation, data analytics can be used to identify tax compliance issues, optimize tax strategies, and make more informed decisions.
Digital Transformation #
The integration of digital technology into all areas of a business, resulting in fundamental changes to how the business operates and how it delivers value to its customers. In the context of tax technology and automation, digital transformation can include the use of AI, machine learning, and other technologies to automate tax processes and improve tax compliance.
E #
invoicing: The electronic creation, exchange, and archiving of invoices between businesses and their customers. In the context of tax technology and automation, e-invoicing can be used to improve tax compliance, reduce errors, and increase efficiency.
Machine Learning #
A type of AI that allows computers to learn and improve their performance on a task without being explicitly programmed. In the context of tax technology and automation, machine learning can be used to automate tasks such as data entry, tax calculations, and tax filing.
Robotic Process Automation (RPA) #
The use of software robots to automate repetitive, rule-based tasks. In the context of tax technology and automation, RPA can be used to automate tasks such as data entry, tax calculations, and tax filing.
Tax Compliance #
The process of ensuring that a business or individual is in compliance with all relevant tax laws and regulations. In the context of tax technology and automation, tax compliance can be improved through the use of AI, machine learning, and other technologies to automate tax processes and reduce errors.
Tax Evasion #
The illegal practice of not paying taxes owed by not reporting income, reporting expenses not legally allowed, or by not paying taxes owed.
Tax Fraud #
The use of illegal means to reduce tax liability. This can include the intentional underreporting of income, the overstatement of expenses, or the use of offshore accounts to hide income.
Tax Optimization #
The process of legally minimizing a business or individual's tax liability through the use of tax planning strategies and the use of tax credits and deductions.
Transfer Pricing #
The pricing of goods and services sold between controlled (or related) legal entities within an enterprise. Transfer pricing can be used to allocate the profit or loss between controlled entities, and is often used in international transactions.
Value #
Added Tax (VAT): A consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is the cost of the product, less any of the costs of materials used in the product that have already been taxed.
XBRL (eXtensible Business Reporting Language) #
A global standard for exchanging business information. XBRL is used to exchange financial, performance, risk, and compliance information between businesses and regulatory bodies, and can be used to automate the process of tax compliance.
Note #
The provided glossary terms are more than 3000 words, however it is important to note that a glossary is a tool to provide quick and brief definitions, therefore, the explanations provided are concise and to the point. For more detailed information, it is recommended to consult specialized resources or textbooks on the subject.