Artificial Intelligence in Transfer Pricing: Opportunities and Challenges for Tax Authorities

Abstract

 This paper explores the transformative potential of Artificial Intelligence (AI) in the domain of transfer pricing, focusing on the opportunities it presents and the challenges it poses for tax authorities. The application of AI in transfer pricing can enhance efficiency, accuracy, and compliance, but it also introduces complexities related to data security, ethical considerations, and regulatory frameworks. By examining current use cases, benefits, and obstacles, this paper provides a comprehensive overview of how AI can reshape transfer pricing practices and the implications for tax authorities globally.