adóalgos

adóalgos is a term used to describe algorithmic tools employed by tax administrations to model, calculate, and enforce tax obligations. They automate analysis of taxpayer data to identify risk patterns, estimate liabilities, and guide audit and compliance activities.

Etymology: The term blends the Hungarian words for tax (adó) and algorithm (algoritmus), and is used in Hungarian discourse to refer to computer-based systems that manage or support taxation.

Typical applications include risk-based audit selection, desk reviews, fraud detection, transfer pricing analysis, and the evaluation of proposed tax policy scenarios before enactment.

Technologies used range from rule-based engines to machine learning, anomaly detection, and statistical forecasting. Data sources include tax filings, financial statements, transaction records, and third-party data. Performance is measured by precision and recall, false positive rates, processing time, and cost savings.

Criticism and governance concerns focus on privacy, bias, transparency, and due process. Critics warn of over-reliance on automated judgments and the possibility of error; advocates emphasize the need for human oversight and explainability.

Regulatory responses include impact assessments, model auditing, and demands for methodological transparency. Proposals commonly call for data minimization, independent review, and clear avenues for redress when automated decisions affect taxpayers.