France’s tax authorities have been authorised to use social media and AI tools to detect tax fraud and unreported income. The controversial policy, which took effect on 1st January 2025, permits officials to create accounts on platforms like Facebook, Instagram, TikTok, and LinkedIn to monitor publicly accessible content.

The objective of allowing domestic tax authorities to use social media and AI in their work is to enable officials to identify inconsistencies between individuals’ declared financial situations and the lifestyles portrayed on their social media profiles. It will also allow tax authorities to monitor individuals who claim to live abroad for tax purposes while residing in France.

The move follows a previous decree that permitted the use of AI tools to detect undeclared swimming pools, buildings, and short-term rentals in France. It also reflects a broader effort by the state to modernise its tax operations, following other measures implemented in recent years, such as the introduction of AI-driven systems to detect anomalies in tax returns.

Though the decision will significantly expand the tax authorities’ surveillance capabilities, the new system comes with strict limits. France’s data privacy watchdog, CNIL, has stipulated that only publicly available information can be used and that private messages or non-public data remain off-limits. According to media reports, collected data can only be used to investigate specific offences outlined by law, such as underreporting income.

The use of AI and social media for tax enforcement has sparked concerns over privacy and the balance between oversight and individual rights. Critics warn that these tools could lead to overreach, while proponents argue they are essential for combating fraud and ensuring fairness in the tax system.

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