Problems and prospects of using artificial: Intelligence technology in the field of public administration of taxation: the experience of Iran

Toranj Kasaeian

doi:10.63053/ijset.110

Authors

Toranj Kasaeian National Research University, Higher School of Economics, Moscow, Russia.

DOI:

https://doi.org/10.63053/ijset.110

Keywords:

Artificial Intelligence, Public Tax Administration, Oil and Gas Revenue, Digital Transformation, Iran

Abstract

The Islamic Republic of Iran’s tax system, influenced by its historical dependence on direct oil and gas revenues, is not considered developed in terms of its administrative capacity and technological infrastructure. This long-standing dependence has reduced the need for innovation in tax revenue collection and management and as a result, digital transformation, including the use of artificial intelligence (AI) technology, has faced structural, technological, and institutional challenges. This research, using an analytical-comparative approach, examines the problems and prospects of AI application in Iran’s general tax administration, especially in the key oil and gas sector. The data is extracted based on official reports, budget documents and statistical information on the performance of industrial and economic sectors. The findings show that despite the implementation of the “Comprehensive Tax System” plan and progress in digitizing processes, serious shortcomings, including the continuation of paper processes, lack of database integration, limited transparency in tax revenue allocation and the lack of indigenous AI infrastructure, have prevented the full use of technological capacities. At the same time, opportunities such as the use of AI in tracking oil production (satellite imagery and pipeline sensors), automated analysis of financial statements, budget planning based on oil price fluctuation forecasts and provision of chatbot-based tax advisory services have been identified. The paper concludes that a successful transition to a smart tax system in Iran requires the simultaneous implementation of four axes: deepening digital transformation, structurally combating corruption, developing indigenous technological capacities, and legally requiring financial transparency. These changes can create a multi-fold capacity to increase efficiency, reduce tax evasion and enhance public trust

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