Introduction
As artificial intelligence (AI) tools become increasingly popular among Australians for tax assistance, experts are urging caution. There are significant risks associated with sharing sensitive personal information, particularly when it comes to tax returns and file numbers. This article highlights the warnings from tax professionals and the Australian Taxation Office (ATO) on the implications of using AI for tax matters.
Australians are being cautioned to avoid sharing sensitive information such as their tax file number or tax returns with artificial intelligence (AI) tools. Taxpayers are increasingly relying on online chatbots like ChatGPT for guidance on taxes, yet there are serious risks involved.
It may appear to be common sense; however, Fab Tax Accountant director Miriam Holme indicated that individuals are providing their tax returns to ChatGPT for review and analysis, unaware of the potential privacy risks.
“They don’t know where their data has gone now,” Holme shared with Yahoo Finance.
RELATED
The Australian Taxation Office (ATO) has also urged individuals to refrain from disclosing personal information.
“Taxpayers should avoid sharing personal details, including their Tax File Number (TFN) or myGov credentials, with AI tools such as ChatGPT,” emphasized an ATO spokesperson in a statement to Yahoo Finance.
“If taxpayers have already disclosed their personal information, they should reach out to the ATO’s Client Identity Support Centre at 1800 467 033 immediately so the ATO can implement necessary measures to safeguard their data.”
Do you have a story to share?
Contact tamika.seeto@yahooinc.com
Even ChatGPT has warned individuals against the risks of sharing their tax file number.
When Holme queried the chatbot about the risks, it responded that sharing such information could lead to losing control over where it ends up.
“Many people assume a chat box is private. However, screenshots, copy-pasting, browser extensions, or shared devices can reveal that data. The safest TFN is one that remains unentered into random tools,” it advised.
Companies like OpenAI, which owns ChatGPT, frequently train and update their algorithms, utilizing user data unless individuals opt-out.
Holme conveyed her concerns on social media, and many users acknowledged their errors in judgment. Some admitted to mistakenly sharing their TFNs.
“I think I’ve already given a TFN, whoops,” one user commented.
“Too late,” another remarked.
This comes amid a rising trend of Australians seeking AI for tax assistance.
A survey conducted by Compare Club last year revealed that nearly a third of Australians were utilizing AI for tax guidance and processing their tax returns, with almost 40% using the technology for personal finance management. Additionally, 36% expressed interest in integrating AI into their financial practices, while a quarter expressed distrust.
Holme advised individuals against trusting AI for tax advice, citing frequent inaccuracies.
“It’s not a reliable source for tax-related information. Currently, it cannot guarantee accuracy,” she remarked to Yahoo Finance.
Holme observed that AI often retrieves information from various jurisdictions and may occasionally “fabricate details”.
The ATO also cautioned users to exercise discretion when looking for tax advice through AI.
“While new technologies can enhance our lives, there may be concerns regarding platforms that provide unreliable tax guidance,” stated a representative.
“AI-generated advice is only as accurate as its source material; relying on a wide array of inconsistent references can introduce inaccuracies.”
Taxpayers have been informed that they are still accountable for the precision of the information submitted to the ATO, regardless of whether AI assistance was utilized.
“Always seek tax advice from the ATO or a registered tax professional. Our website, ato.gov.au, offers guidance on a variety of topics or instructions on how to reach us with any further questions,” the spokesperson concluded.
Get the latest Yahoo Finance news – follow us on
Facebook
,
LinkedIn
and
Instagram
.
Conclusion
As technology evolves, so too do the ways people manage their finances and navigate tax-related matters. While AI can offer convenience, it is crucial for individuals to remain vigilant and protect their personal information. This serves as an important reminder to seek verified advice from trusted sources to ensure financial security and compliance with tax regulations.
