In a pilot test in France, an algorithm was used to discover 20,000 undeclared pools. The Treasury brought 10 million euros.
After French tax authorities discovered tens of thousands of unregistered pools in a pilot project with the help of AI technology and aerial photographs and secured the state additional revenue of 10 million euros, the procedure is now to be used nationwide. This was confirmed by the Directorate General for Public Finances (DGFiP) of the AFP news agency after a report in Le Parisien. The newspaper had reported that the algorithms had been used to discover more than 20,000 unregistered pools in a total of nine departments. It is now being considered to use the technology to search for other undeclared assets – such as porches.
Regular additional income in the millions
The project was presented in April, and the tax department cooperated with the consulting firm Capgemini and Google to develop the technology. It was tested in the departments of Alpes-Maritimes, Var, Bouches-du-Rhône, Ardèche, Rhône, Haute-Savoie, Morbihan, Maine-et-Loire and Vendée, writes Le Parisien. Additional tax payments of around 6 million euros were due for the pools found on aerial photographs, and the property tax determined for this year is around 4 million euros. This money will now benefit the communities on a permanent basis. The DGFiP estimates that a total of 40 million euros should come together in the coming year thanks to the expansion to all of France.
The technology called “Foncier innovant” enables the automatic recognition of buildings and facilities on aerial photographs and a comparison with the tax register. In the future, undeclared extensions such as verandas or large garden houses could also be recognized. But the software still needs to be improved, according to Le Parisien. As French media are now explaining, pools and extensions are taxable if they cannot be moved without having to be demolished. For pools larger than 100 m2 A permit from the municipality is also required.
The search for unregistered pools also took place against the background of a severe drought in France, which has sparked a debate about the use of drinking water. While the use of the algorithm turned out to be financially extremely successful for the tax authorities, there was also criticism from employee representatives. As Ouest-France reports, a regional branch of the CGT Finances Publique trade union has expressed “concern” that the project will generate “savings” and result in fewer jobs being filled despite years of downsizing.
