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Tax Evaders Are Generating AI Fake Receipts Through ChatGPT-4o
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Key Takeaways
New AI models, like OpenAI’s ChatGPT-4o, can create highly realistic fake receipts with details such as itemized lists, dates, and even imperfections like wrinkles or stains, making them hard to spot as fakes at a glance.
People have been experimenting with these tools, posting examples on social media of fake receipts for real and fictional restaurants or stores. Some add realistic touches, such as crumpled paper or food stains, to fool casual observers.
The ease of generating these receipts has raised alarms about potential fraud, such as employees submitting fake expense reports or scammers seeking refunds for nonexistent purchases.
Take a look at the image below—does it look like a real receipt to you?
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If you said no, good eye! This image was actually created using AI.
There has been a recent trend in Australia wherein artificial intelligence (AI) is being used to create fake receipts that could fool tax officials, but experts say it is not as sneaky as you might think.
Imagine having an AI-powered tool at your fingertips to whip up a receipt in seconds. It sounds like a dream come true for those looking to make a big tax deduction.
However, financial expert Josh Lee from Link Wealth Group says this technology adds another layer of complexity to the game:
“If you're putting through a few little ones, what's the likelihood you're going to be audited? Unless you're trying to put through $10,000 or $20,000 worth of dodgy receipts, that's maybe a little bit different. It's gonna make [accountants’] lives definitely a lot harder in terms of cross-checking whether that's actually legitimate.”
Australian Taxation Office: Nothing To Worry About
The problem is that AI-powered tools like ChatGPT's image generation tool can produce receipts that are almost indistinguishable from the real thing. Even with just a few prompts, these tools can turn out images of fake pizza orders, dates, times of purchase, and tax amounts, all perfectly realistic.
But what happens when you ask for something extra, like a crinkled receipt in a drawer or purse? That is where things get concerning.
@easy.daisy0 A new era of tax evasion is upon us. #ai #aieducation #fyp #creatorseachinsights #TechTrends #Edutok #TechTalks #AInews #AIGenerated #A... See more
Even TikToker and AI expert Easy dAIsy says it could usher in a "new era of tax evasion."
However, the Australian Taxation Office (ATO) is not buying it. They have warned Australians that if they try using these tools to create fake receipts, they will be caught and face severe penalties.
What If You Really Lost Your Receipt?
So, what can you do if you genuinely lost your receipt and need help with your tax deduction?
Josh Lee says that AI-powered tools like ChatGPT could actually come in handy for people who want to generate legitimate receipts, but the ATO has its own set of rules.
If things look a little fishy on your tax return, they can request information from your bank to verify you paid for a particular item.
The key here is understanding what makes a valid receipt for tax purposes. Notably, the ATO wants to see the following:
👉 The name or business name of the supplier.
👉 The amount of the expense or cost of the asset.
👉 The nature of the goods or services you buy.
👉 The date you bought them and the date the document was produced.
Therefore, the consequences of getting caught trying to game the system can be severe. If someone in the highest tax bracket claims a $1,000 item as a deduction and gets audited, they might have to pay back 47% of that item, plus interest.
Final Thoughts
While AI-powered tools may seem like a convenient way to make a tax deduction, let’s remember that honesty is always the best policy for paying your taxes.
As a tip, consider scanning your receipts and saving them digitally. Paper receipts tend to fade over time, and having digital copies means you won’t have to rely on AI tools as a last resort when tax season rolls around.