HARNESSING ARTIFICIAL INTELLIGENCE, BIG DATA, AND FORENSIC INVESTIGATION IN TAX INVESTIGATION AND AUDIT FUNCTIONS: A NEW FRONTIER IN COMPLIANCE ENFORCEMENT

Abstract

The deployment of Artificial Intelligence (AI), Big Data analytics, and forensic investigation in tax administration marks a new frontier in compliance enforcement. These tools enable tax authorities to detect anomalies, reconstruct fraudulent transactions, and streamline tax investigation and audit functions with greater accuracy and efficiency. Drawing on global case studies from South Africa, India, the United States, Norway, Uganda, and the United Kingdom, and linking them to Nigeria’s emerging practices under the Federal Inland Revenue Service (FIRS), Economic and Financial Crimes Commission (EFCC), and Independent Corrupt Practices Commission (ICPC), this paper examines how AI, Big Data, and forensic investigation drive enforcement, enhance fraud detection, improve audit outcomes, and support real-time compliance monitoring. While benefits are clear, challenges remain in data protection, algorithmic bias, and transparency. The study recommends capacity building, robust data governance, and the integration of forensic units into Nigeria’s tax enforcement landscape to strengthen compliance and revenue mobilization.