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HM Revenue and Customs has awarded London-based Quantexa a £175 million, ten-year contract to deploy AI and data analytics across its tax compliance operations, aiming to close a tax gap that has ballooned to nearly £47 billion. The deal raises urgent questions about algorithmic bias, taxpayer rights under new UK data protection law, and whether pattern-matching AI can address the structural causes of tax loss — nearly half of which stems from carelessness and errors rather than deliberate fraud.