Expectations for Artificial Intelligence in Brazilian Federal Tax Litigation

Abstract

This paper addresses the issue of artificial intelligence (AI) in Brazilian federal tax litigation, specifically from the perspective of its use in administrative cases pending before the Administrative Council of Tax Appeals (Carf), an administrative court with equal counsel, linked to the Executive Power and the Ministry of Finance. Based on the implementation of an AI that is duly regulated by law, the paper aims to discuss expectations and uncertainties, despite the existence of several sub-legal regulations that do not sufficiently guarantee the minimum legal certainty essential to a democratic state of law. Finally, it encourages the reader to reflect on the caution required in its use, especially by state entities, regarding the use of sensitive data, database transparency, respect for fundamental rights and guarantees such as privacy and the right of access to information, as well as caution regarding the opacity, bias, and explainability of the algorithm, and the right to human review, at all times.