Taxation of Autonomous Artificial Intelligence: Socially Sustainable Expansion of Automation and Impacts on International Tax

16 Pages Posted: 15 Apr 2024

See all articles by Reuven S. Avi-Yonah

Reuven S. Avi-Yonah

University of Michigan Law School

Lucas Salama

University of Michigan Law School

Date Written: March 24, 2024

Abstract

This paper investigates if artificial intelligence should be taxed independently from its controllers or owners and how this could be structured and used to benefit tax administration while being a positive influence for private sector stakeholders. The main question that will be investigated is whether the reasons for taxing such entities outweigh the respective negative consequences. We propose that autonomous A.I. has started a transformation in the way legal systems around the world assign rights and obligations, and creating a tax on the profits generated by autonomous systems is not only coherent with the current business entity model of taxation, it is also an effective way to address the international tax challenges arising from A.I. operating in multiple jurisdictions and in providing a reliable structure for regulation, and potentially creating a way to safeguard socially responsible expansion in the use of automation.

Keywords: Tax, AI

JEL Classification: H26

Suggested Citation

Avi-Yonah, Reuven S. and Salama, Lucas, Taxation of Autonomous Artificial Intelligence: Socially Sustainable Expansion of Automation and Impacts on International Tax (March 24, 2024). U of Michigan Public Law Research Paper Forthcoming, Available at SSRN: https://ssrn.com/abstract=4770839 or http://dx.doi.org/10.2139/ssrn.4770839

Reuven S. Avi-Yonah (Contact Author)

University of Michigan Law School ( email )

625 South State Street
Ann Arbor, MI 48109-1215
United States
734-647-4033 (Phone)

Lucas Salama

University of Michigan Law School ( email )

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