UHY Ross Brooke Chartered Accountants

“Don’t believe everything you read on Chat GPT” – William Shakespeare

dont trust chat gpt for tax advice

Yes clearly ridiculous I know, but Felicity Harper the appellant in a recent First Tier tribunal case may have found it so funny.

By Chris Davies

Ms Harper appeared before the FTT to dispute a failure to notify penalty from HMRC for over £3,000, on the basis that she had a reasonable excuse. In her defence she provided the tribunal with a list of names, dates and summaries of previous FTT decisions all showing that reasonable excuse had existed.

However, the FTT discovered that nine of those cases, which had been generated by an AI model similar to Chat GPT were entirely false. The AI had simply made them up!

Although there is no suggestion that Ms Harper knew that the cases were false the judge was less than impressed and commented that ‘providing authorities which are not genuine and asking a court or tribunal to rely on them is a serious and important issue’.

Needless to say that Ms Harper lost her appeal, but the implications are clear.

It is far better to place reliance on an experienced professional than risk accepting whatever answer AI throws out. If any reliance is to be placed upon AI generated algorithms then the facts must be cross-checked carefully.

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