Romanian Tax Authority uses AI to justify dispute rejections with fabricated citations
A Romanian legal counsel reports that the Tax Authority uses AI to justify rejections of taxpayer disputes, but the AI system generates non-existent legal citations, fabricated court rulings, and references to practices of non-existent international bodies to support its decisions.
What happened
The Romanian Tax Authority (ANAF) uses artificial intelligence to justify decisions rejecting taxpayer objections in dispute resolution proceedings.
According to a legal analysis, the AI system generates references to non-existent legal provisions, court rulings, and practices of international bodies that do not exist in reality, which are then invoked by the Tax Authority to support its position.
Reported impact
The use of AI generates inaccuracies that deviate from the correct resolution of tax disputes.
Taxpayers receive decision justifications containing fabricated citations, undermining the legal quality of administrative decisions that are meant to protect their rights when they consider their legal interests violated.
Index analysis
The AI system is reportedly used exclusively to identify arguments to counter taxpayer objections rather than to conduct balanced analysis of disputes.
The system generates hallucinated legal citations including references to provisions that do not exist, court decisions that have no basis in reality, and practices of international organizations that cannot be verified.
Governance controls
Tax Authority decisions in dispute resolution are required by law to contain both factual and legal reasoning regarding complaints from taxpayers who believe their legal rights or legitimate interests have been violated.
No governance measures or oversight mechanisms are mentioned to prevent or detect AI-generated fabrications in decision justifications.
Classification
Sources and evidence
Sources not yet published
This record was researched and written by the Index from original reporting. Its sources are still being verified by an editor, and they are listed here once that check is complete. Until then the record carries no reviewer.