Predictive taxpayers and the future of revenue

THERE is a growing divide in the world of taxation, but it isn't just about who pays the most.

- By Dr. Nadee Dissanayake

It is about who knows the future. For many years, taxation has followed a simple and familiar rhythm. People and businesses earn income, keep records, calculate profits, and then pay taxes based on what has already happened. Governments design tax laws around past income and completed transactions. Audits, penalties, and revenue forecasts are all built on this backwardlooking system. It has given taxpayers clarity and the state a sense of control.

Today, that rhythm is slowly changing. The change is not loud or dramatic, but it is powerful. Artificial intelligence is quietly reshaping how large businesses think about tax. Instead of waiting for rules to be enforced or audits to begin, many companies are now trying to see the future before it arrives.

Across the world, large corporations are using advanced AI tools to predict how tax authorities might behave tomorrow. These systems study past audits, court cases, policy speeches, budget signals, political trends, and even public opinion. They estimate how likely it is that a certain transaction will be questioned, how strict enforcement might become, or how laws may be interpreted in the near future. Based on these predictions, companies adjust their decisions today. This has given rise to a new figure in modern taxation: the predictive taxpayer.

A predictive taxpayer does not simply react to tax rules. Instead, it tries to stay one step ahead. Using powerful algorithms, companies forecast possible tax outcomes before income is earned or laws are changed. Decisions about investments, pricing, profit sharing, and business structure are increasingly guided by what AI systems believe might happen next, not just by what the law says now. Tax planning has become less about reading legislation and more about predicting behaviour.