The Austrian equivalent of HMRC used AI and predictive analytics to probe taxpayers’ affairs to detect tax evasion resulting in the recovery of an extra 1% of revenue.

A total of 6.5m entrepreneurs and individuals were analysed by the tax authority’s predictive analytics competence centre. This meant that the majority of Austria’s taxpayer community of 7.3m companies and individuals were likely caught up in the AI probes.

The €185m represented just over 1% of the total Austrian tax take of €205.7bn (£175.9bn). If extrapolated to the UK, HMRC could raise nearly a billion pounds in extra tax a year.

The investigations uncovered false information in employee tax returns as well as income tax, corporate tax, and VAT fraud, as well as uncovering inappropriately claimed tax reliefs and subsidies, as well as bogus companies.