Russian Tax Service Claims AI Use, But Is It Just Automation?

A former employee of the Russian Federal Tax Service, who worked there for 12 years until November 2022, claims that the FNS does not use artificial intelligence, contrary to official statements. He cites recent official announcements, including those from heads of regional inspectorates, that tout AI for analyzing risks, detecting business splitting, and forecasting economic models. However, the author asserts that the existing tools within the AIS Nalog-3 system operate on predefined rules, comparable to Excel macros, and simply automate cross-checks of structured data. He mentions ASK NDS-2, a software that matches VAT declarations and electronic invoices, which flags discrepancies for human inspectors to investigate. The author argues that while these systems are powerful and provide inspectors with more data than before, they are not AI. He predicts that genuine AI could be implemented only with a new software complex, Nalog-4, potentially transforming tax control economics by allowing each inspector to handle far more cases, which could particularly affect small businesses that currently escape scrutiny due to inspector time constraints.