A court has ruled that HMRC must disclose its use of AI in decisions regarding research and development (R&D) tax credits. Tom Elsbury, a tax expert, filed a Freedom of Information request, arguing for transparency. Judge Alexandra Marks at a first-tier tribunal described arguments in favour of greater transparency as "compelling," ruling that the public deserves to know if AI influences tax decisions. Mr Elsbury has expressed concerns about the implications of AI in tax enquiries, particularly regarding sensitive industries. He argues that the public should know "if AI is concluding or forming a decision in tax enquiries" on enterprise tax credits, adding that people should also know if penalties have been issued on the basis of AI-generated decisions.
