In a recent Upper Tribunal case (HMRC v Marc Gunnarsson), a taxpayer did not have any professional representation and used Artificial Intelligence (AI) software to draft his skeleton argument in the run-up to the hearing.
The Upper Tribunal found that Self-Employment Income Support Scheme (SEISS) claims made by the taxpayer – a director of a limited company – were incorrect and he was required to repay the amounts received.
His skeleton argument referred to three First Tier Tribunal decisions to support his case, but those cases did not exist – they had been ‘hallucinated’ by generative AI.
The use of AI is increasing, and it is important to verify that the information generated is accurate before relying on it. There is a real danger that inaccurate or fictitious information may be used as evidence in legal proceedings.
Whilst AI obviously has advantages in today’s world, when it comes to tax, it’s very important to verify tax advice with a trained, qualified professional.
