Spain's AI Tax Plans Spark Transparency and Taxpayer Rights Concerns

Spain's proposed amendment to its Artificial Intelligence Bill, dubbed the 'AI secrecy law,' is raising alarms over transparency, taxpayer rights, and algorithmic accountability in tax administration. The amendment would restrict public access to information about algorithms and AI tools used by the Spanish Tax Agency to select individuals for audits. Critics, including Spain's Association of Tax Advisers (AEDAF) and international law firm Amsterdam & Partners, argue the move may conflict with the EU AI Act, GDPR, and constitutional due process guarantees. The debate occurs amid broader European trends where over 70% of tax administrations now use AI, according to the OECD. Comparative analysis highlights differing safeguards across Germany, the Netherlands, Slovakia, and the UK. Concerns are compounded by scrutiny over the Spanish Tax Agency's use of Huawei storage systems for taxpayer data, raising data security and international treaty confidentiality issues.