The role of procedural safeguards in legitimising the use of automated risk management systems in tax administration: the case of the non-citizen taxpayer

By introducing automated risk management systems into their tax verification processes, tax authorities aim to improve the enforcement of tax laws. Because they involve the automated processing of large amounts of taxpayer data, this also creates new risks for fundamental rights of taxpayers, especially members of minority groups, who may find themselves subject to increased scrutiny and may struggle to assert their rights. Non-citizen taxpayers may also be particularly affected, as they are obliged to pay taxes and submit their personal data without being able to vote on the rules which govern these processes. This chapter examines the essential role of effective procedural safeguards in protecting their interests. Unlike the right to vote, these protect individual taxpayer rights on a case-by-case basis. Whilst the focus is placed on German procedural tax law, this in turn is heavily influenced by the EU data protection law framework, which applies far beyond Germany.