Technological developments such as AI, crypto, and blockchain are creating new challenges for our tax system. While AI operates without regard for borders, taxation remains firmly tied to national jurisdictions. In his inaugural lecture, Professor Dennis Post argues for a fresh perspective on existing tax rules and calls for greater international cooperation.
An internationally active entrepreneur managing AI agents from a tax haven. A major U.S. technology company serving customers primarily in other countries. Or the use of new technologies in tax administration itself. These examples raise important questions about the sustainability of existing legal frameworks and the future design of our tax system.
Tax Challenges
“Ever since the rise of crypto and blockchain, I have become increasingly interested in their impact on taxation and vice versa,” says Post. “The rapid developments in AI have only strengthened that interest. The challenge is that technology does not recognize national borders, while taxation is inherently bound by them. At the same time, technology also offers opportunities to improve tax administration. However, this must be done responsibly. No one is waiting for a repeat of the childcare benefits scandal.”
Robot Tax
A broad public debate is now underway about how AI should be taxed. “If we assume that AI will replace part of the workforce, one option is to introduce a so-called robot tax,” Post explains. While he understands the reasoning behind such proposals, he does not believe they offer the right solution.
“In practice, a robot tax would be extremely difficult to implement. At the same time, we do need to think about how to compensate for any decline in income tax revenues. One possibility is a data tax, under which companies would be taxed based on the amount of data they use. Such a measure could also help slow down the replacement of human labor by AI.”
International Cooperation
Post observes that countries often take unilateral measures. “For multinational companies operating across different jurisdictions, this creates a patchwork of rules that only increases uncertainty.” According to Post, the most important solution lies in international cooperation. He points in particular to multilateral institutions such as the OECD, the World Bank, and the IMF.
“However, the geopolitical climate makes this difficult,” he acknowledges. “The OECD once reached agreement on a tax framework for large technology companies with revenues of at least $20 billion. But opposition from the United States prevented the plans from moving forward. China, too, is not in favor of international agreements in this area.”
Preventing Intellectual Laziness
In addition to examining the impact of new technologies on taxation, Post wants to translate these insights into tax education. “We currently have a dedicated Tax & Technology focus area, but AI has become so deeply integrated into both work and education that it should be embedded across all courses.” At the same time, he is concerned about students’ use of AI, for example when writing theses or conducting research. “There is a real risk of intellectual laziness, while it remains crucial that students continue to think critically and learn independently.”
According to Post, this does not mean AI should be excluded from education. “Students should first form their own thoughts, then explore how AI can support them, and finally make their own judgments. In my view, that is the right order.” He also sees significant opportunities: “AI may help students learn more effectively, allowing them to acquire knowledge more quickly.”
Far-Reaching Consequences
According to Post, it is difficult to predict exactly what the tax system of the future will look like. “What is certain is that new technologies will have a profound impact on existing institutions. This applies not only to tax authorities, but also to the judiciary.
Some believe technology can improve access to justice and reduce workloads. Others fear that AI will make it easier for people to file objections or appeals, further increasing pressure on the legal system.” Post believes the greatest challenge is gaining control over the many complex issues arising from these technological developments. “If we fail to do so, the problems will only become more significant.”
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