Artificial intelligence or a tax agent: Who should you trust with your tax return?

Artificial intelligence or a tax agent: Who should you trust with your tax return?

Melbourne-based tax agent Muhammad Saad Kamal told SBS Urdu that while artificial intelligence can be a useful tool for providing general tax information, it cannot replace a registered tax agent—particularly in complex cases, audit situations, and in navigating constantly changing tax laws.

Muhammad Saad Kamal said that artificial intelligence has become a valuable educational tool, helping people understand tax concepts such as deductions, the Medicare levy, HECS, capital gains and work-related expenses. However, he cautioned that, according to the Australian Taxation Office (ATO), responsibility for the accuracy of a tax return always rests with the individual, even if the information was obtained from AI.

He stressed that AI can sometimes present outdated or incorrect information with a high degree of confidence, while ATO rules and tax legislation are updated regularly each year.

Drawing a comparison with self-medication, Kamal said that just as a Google search cannot replace a doctor, artificial intelligence cannot replace a registered tax agent. A tax agent considers an individual's specific circumstances and asks detailed questions before providing advice.

He added that if an ATO audit finds claims were made based on incorrect information, taxpayers may be required to amend their return and repay money instead of receiving a refund. For this reason, he advised people with businesses, investment income or cryptocurrency holdings to seek professional tax advice.