🌎 This Monday, the cover piece of Tax Notes International is an article co-authored by Lucas de Lima Carvalho, Raphael de Campos Martins and Gabriel Bez-Batti. The article is titled “AI Prompt Engineering and the U.N. Model Treaty” and it explores the implications of AI prompt engineering for the qualification of technical services as such under Art. 12A (“Fees for Technical Services”). The article also provides some commentary on Art. 12B (“Income from Automated Digital Services”) even though it has not gained traction as a provision in tax treaties signed or amended since 2021. As said by the authors:
❗ “Taxes are imposed on taxpayers, either human beings or entities led by human beings. The qualification of services as technical services in tax treaties must be mindful of the human beings who provide them. Those in a similar position should be treated in a similar manner. The point of this article is to highlight that the usage of AI can affect that status, that notion of equality between different service providers. It is our concern for fairness and for the taxpayers’ ability to pay that guides our assessment of how to accommodate AI in our tax systems.”
You can find the article here (https://bit.ly/3KLZXos). If you are interested in the topic of taxation and AI, here is a list of articles and books recommended by the Latin American Tax Policy Forum (LATPF):
➡ “Taxing Artificial Intelligence”, by Xavier Oberson. Available at: https://amzn.to/3xuD9pY
➡ “Taxing Artificial Intelligence and Robots: Critical Assessment of Potential Policy Solutions and Recommendation for Alternative Approaches – Sovereign Measure: Education Taxes/Global Measure: Global Education Tax or Planetary Tax”, by Vikram Chand, Svetislav Kostic and Ariene Reis. Available at: https://bit.ly/4dfloes
➡ “Taxation of New Technologies – The Explainable Artificial Intelligence (XAI) Used as a Tool to Supervise the Income Generated by Permanent Establishment in the Digital Economy”, by Vanessa Bulara. Available at: https://bit.ly/4c3pQvK
➡ “The Marriage of Artificial Intelligence and Tax Law: Past, Present, and Future”, by Błażej Kuźniacki. Available at: https://bit.ly/4ezQnCO
➡ “Inteligencia artificial y tributación: el debate sobre la personalidad jurídica y la responsabilidad” (“Artificial intelligence and taxation: the debate about legal personality and liability”), by Sonia Elizabeth Ramos-Medina. Available at: https://bit.ly/4beA1wG
➡ “Tributação e Inteligência Artificial” (“Taxation and Artificial Intelligence”), by Hugo de Brito Machado Segundo. Available at: https://bit.ly/3zbIDq5
➡ “Leveraging the potential of artificial intelligence (AI) in exploring the interplay among tax revenue, institutional quality, and economic growth in the G‑7 countries”, by Charles Saba and Nara F. M.. Available at: https://bit.ly/45p4F4K
➡ “Taxation of automation and artificial intelligence as a tool of labour policy”, by Vincent Ooi. Available at: https://bit.ly/4enx4fO
