French tax authorities are using Artificial Intelligence software to detect thousands of undeclared private swimming pools in French homes, totalling close to $10 million in additional tax revenue. The system was developed by Google and Capgemini and can identify pools from aerial images and cross-check them with land registry data bases. Any home modifications, including the addition of private swimming pools, must be declared to the tax office within 90 days of completion as any improvements will result in an increase in property taxes. In the past year, the AI system has already been able to uncover over 20,000 pools.
The French tax office is now looking to use the technology to “spot undeclared annexes, extensions, and verandas including permanent pergolas”. However, the tax authorities’ technical team has expressed that they are not yet able to determine whether a rectangular shape on an aerial image is truly an extension, and not just a terrace or children’s playground. In April 2022, it was claimed that the Google-Capgemini software had a 30% margin of error, mistaking solar panels for pools, and being unable to detect extensions that were hidden underneath trees or in shadows.
There are currently an estimated 3.2 million private swimming pools in France, with demand having increased during the Covid-19 pandemic as work-from-home increased alongside major heatwaves. The public finance authority, the DGFiP, is planning to roll out the AI technology nationwide after French environmentalists called for the banning of private pools after the summer heatwave resulted in drought and water restrictions. Officials estimate that generalizing the AI system across France could raise $40 million in new levies in 2023. With even drinking water supplies threatened, and an estimated 274 fires across France due to the heat and lack of rain, environmentalists are encouraging limiting the use of water for recreational purposes.
Read more from the Guardian and the Washington Post, and check out the original story from Le Parisien.
