French tax authorities used artificial intelligence to locate undeclared private pools from aerial photographs. Following checks, owners were fined a total of around €10 million, The Guardian.
The system developed by Google and Capgemini can identify pools in aerial photographs and cross-check them against land registry databases. As a result of the trial, it identified 20,356 unregistered objects.
According to regulators, any changes in ownership, including the addition of swimming pools, must be declared within 90 days of completion of construction. A typical pool of 30 square metres implies an additional annual levy of around €200 for the owner, experts noted.
Currently the tax service is considering using the system to detect undeclared extensions, verandas and permanent terraces.
“We are especially focused on home additions such as verandas. But we must be sure that the software can identify buildings with a large footprint, not a doghouse or a children’s playhouse,” said Antoine Magnat, Deputy Director-General for State Finances.
According to the technical team of the tax authorities, they cannot yet distinguish an extension from a tent, veranda or canvas on the ground. The software’s margin of error stands at about 30%, they added.
In April 2022, it was reported that AI mistakenly treated solar panels as pools and also failed to locate taxable extensions hidden behind trees or in the shade.
According to the developers, tests are being conducted to improve the technology.
“This is our second phase of the study, which will also allow us to verify whether the property is empty and whether it should bear higher taxation,” Magnant added.
A pilot project to identify undeclared real estate was launched in 2021 in nine French departments. In 2023, the system is planned to be rolled out nationwide, and to increase the number of detectable objects.
Authorities expect the technology to help boost tax revenues from private pool construction by €40 million a year.
In February, the U.S. Internal Revenue Service discontinued the use of the facial-recognition system ID.me. In the same month, Americans were allowed not to use biometric authentication when receiving online services from the tax authority.
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