Sharesight CEO: AI tax mistakes investors should watch for

Sharesight CEO Doug Morris talked with Proactive about the risks Australian investors face when relying on artificial intelligence to calculate investment tax obligations, particularly where capital gains, dividends, distributions and changing tax rules are involved. Morris said AI can be useful for broad research and for understanding investment concepts, but warned that it can struggle when investors need precise and repeatable tax calculations. He explained that AI tools may pick up recent information, such as changes to a company’s dividend, and incorrectly apply it across an investor’s entire ownership period. This can distort reported income and potentially result in an incorrect tax calculation. Morris also highlighted the importance of consistency as Australian investors prepare for changes to capital gains tax rules. He said investors need calculations that produce the same result each time, particularly when different methodologies may apply depending on when an asset was acquired or disposed of. While Morris cautioned against using general-purpose AI to prepare and lodge tax returns, he said the technology can still help investors understand tax rules in broad terms, analyse portfolio performance and compare investments with wider economic or market data. For more interviews and investor-focused market insights, visit Proactive’s YouTube channel. If you found this video useful, give it a like, subscribe to the channel and enable notifications so you don’t miss future content.