📈 Blueprint for AI-Powered Tax Digitalisation in Sri Lanka

Sri Lanka is eyeing a radical fiscal transformation inspired by the UK’s HMRC and the UAE’s Federal Tax Authority. The proposed blueprint shifts from paper-based compliance to a real-time, AI-driven revenue system to meet IMF targets and bridge the significant national tax gap. • Strategic Pillars & Technology RAMIS 3.0 Upgrade: Transitioning the system into a dynamic compliance engine using APIs for structured data submission. Unified Digital Taxpayer Account (UDTA): A single portal for citizens and businesses to manage liabilities and filings. AI-Readable Legislation: Converting tax laws into XML/JSON formats to allow automated compliance and searchability via APIs. • Sectoral & Investment Impact FDI Attraction: Introduction of legally binding Advance Tax Rulings (ATR) and public Tax Bulletins to provide the policy certainty required by global investors. SME Support: Radical simplification of fragmented tax laws to encourage voluntary compliance and reduce litigation. • AI Use Cases & Efficiency Risk-Based Auditing: Using Machine Learning to flag high-risk cases (top 1-2%), optimizing audit resources. Fraud Detection: Unsupervised learning to identify "fraud rings," duplicate filings, and under-reporting in real-time. Administrative Tools: Multilingual chatbots for 24/7 taxpayer assistance and automated pre-filled tax returns. • Governance & Workforce Adaptation Anti-Corruption: AI-driven internal audits to detect anomalous employee behavior and ensure a digital audit trail for all refunds. Professional Safeguards: Proposal for an "Automation Social Cost Levy" to fund reskilling for displaced workers in the finance and accounting sectors. Human-in-the-Loop: Mandatory "Human Review and Sign-off" for all AI-generated compliance submissions to maintain legal accountability.