Yes it could, although I'm not sure there is a single Prolog system running in production inside a large government agency at the moment.
Also Prolog does not solve all the problems related to programming the law, especially it doesn't have a nice way to handle redefinitions of variables with legislative exceptions as described https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3088206
Also Prolog does not solve all the problems related to programming the law, especially it doesn't have a nice way to handle redefinitions of variables with legislative exceptions as described https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3088206