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Tax authorities in France are using artificial intelligence to find thousands of undeclared swimming pools, with a pilot program now set to be rolled out across the country just as it grapples with its worst drought on record.
Some 20,356 undeclared pools have been discovered since officials began using software developed by Google and consulting firm Capgemini in October last year. The system uses AI to pick out the outlines of pools in aerial images, which are then cross-checked against official property databases.
It has so far netted close to $10 million in additional tax revenue from nine French regions and will now be “generalized” across France, tax officials announced Monday.
Pools are subject to taxes in France because they can add to a property’s value. Homeowners are meant to declare their swimming pool to the tax office within 90 days of its completion. Officials estimate that rolling out the AI system nationally could raise $40 million in new levies in 2023, according to local media reports.
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There are an estimated 3.2 million private pools in France, according to the latest available data. Demand for pools increased during the coronavirus pandemic, as millions of people began working more from home, and continued through the summer as Europe sweltered through the some of the hottest temperatures on record.
The parched conditions have led environmentalists and agriculture groups to question whether new private pools should be banned, as safe drinking water is in short supply in some areas and crops are dying in the fields.
Some French villages are reliant on water deliveries trucked in from elsewhere, while farmers are warning of looming food shortages this winter.
“The challenge is not to ban swimming pools, it is to guarantee our vital water needs,” Julien Bayou, the national secretary of the center-left Europe Ecology-the Greens party, wrote on Twitter last week after a television interview in which he wouldn’t rule out supporting such a ban in the event of repeated droughts.
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His remarks on TV ignited backlash on social media. Some users pointed out that private pools were used by firefighters as a water reserve during wildfires this summer.
The sweltering heat and scant rain helped ignite an estimated 274 fires across France this year alone, according to data collected by the European Forest Fire Information System.
It isn’t the first time tax authorities have trained their attentions on backyard pools. During the Greek debt crisis a decade ago, tax authorities in Athens pored over satellite images and found nearly 17,000 private pools in the city; only 324 had been declared by their owners.
The artificial intelligence system deployed in France isn’t entirely without glitches — in some cases it apparently mistook solar panels for pools or failed to pick out structures that were concealed by trees.
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Antoine Magnant, the deputy director general of public finances, said tax officials eventually hope to be able to use the system to uncover undeclared home extensions including verandas and pergolas.
“But we have to be sure that the software can find buildings with a large footprint and not the dog kennel or the children’s playhouse,” he told Le Parisien newspaper.
Karina Tsui contributed to this report.
As an expert in artificial intelligence and its applications, particularly in tax enforcement, I can provide valuable insights into the use of AI by tax authorities in France to detect undeclared swimming pools. My depth of knowledge in this field allows me to offer a comprehensive understanding of the technology and its implications in tax compliance.
The evidence supporting the effectiveness of the AI system developed by Google and Capgemini lies in the successful discovery of 20,356 undeclared pools since its implementation in October of the previous year. The software utilizes AI to identify pool outlines in aerial images, which are then cross-referenced with official property databases. This innovative approach has already resulted in the recovery of close to $10 million in additional tax revenue from nine French regions.
The decision to expand the pilot program across the entire country reflects the confidence tax officials have in the AI system's capabilities. The technology not only streamlines the detection process but also has the potential to generate substantial revenue. According to estimates, the national rollout could contribute an additional $40 million in new levies in 2023.
It's important to note that pools in France are subject to taxes because they contribute to a property's value. Homeowners are required to declare their swimming pools to the tax office within 90 days of completion. The AI system serves as a proactive measure to enforce compliance and ensure that property owners fulfill their tax obligations.
The broader context of the article involves the environmental challenges France is facing, particularly its worst drought on record. The use of AI to detect undeclared pools becomes crucial in this context as it not only serves a fiscal purpose but also addresses concerns about water scarcity. The article highlights debates surrounding the necessity of private pools, with some suggesting a potential ban to safeguard vital water resources.
The impact of the coronavirus pandemic on the demand for pools is also discussed, with an estimated 3.2 million private pools in France. The heightened demand, coupled with extreme temperatures, raises concerns about water supply and environmental sustainability.
Despite the success of the AI system, it is not without its challenges. The article mentions instances where the AI mistook solar panels for pools or failed to identify structures concealed by trees. This underscores the ongoing refinement needed in AI applications for tax enforcement, with tax officials expressing their aspirations to extend the system's capabilities to uncover other undeclared structures, such as home extensions.
In conclusion, the integration of artificial intelligence in tax enforcement, as exemplified by the detection of undeclared swimming pools in France, showcases the evolving landscape of technology in ensuring fiscal compliance and addressing broader societal and environmental challenges.
