An Intelligent Accounting-legal Simulation Model for Proactive Resolution of Tax Disputes: Empirical and Comparative Evidence from Egypt

This study develops a smart accounting–legal reform model to prevent tax disputes in Egypt by integrating high-quality accounting information, digital audit trails, and simulation-based decision support. A mixed-methods design combines a structured survey of taxpayers, CPAs, and tax officers (n≈280), semi-structured interviews, and a multi-agent simulation calibrated to sectoral risk patterns. The empirical results show that weak documentation and fragmented IT systems are the primary drivers of recurring disputes; by contrast, e-filing/e-audit and early mediation shorten resolution time and reduce escalation. The simulation forecasts that embedding AI-enabled risk scoring and CPA-facilitated pre-assessment reconciliation can lower dispute frequency by 25–30% over five years, while cutting administrative costs relative to litigation. Comparative benchmarks (UK ADR, Canada digital compliance audits, Australia independent pre-litigation review) corroborate the preventive governance approach and inform implementation priorities for Egypt. The paper contributes theoretically by linking accounting information quality, agency incentives, and preventive governance within a simulation-driven framework; and practically by offering an actionable roadmap-digital mediation platform, SME documentation standards, targeted training, and sector-focused pilots-to institutionalize proactive dispute resolution. Overall, the findings demonstrate that sustainable reform depends less on temporary settlement laws and more on accounting transparency, intelligent analytics, and trust-building procedures embedded in everyday administration.