Data collected from electronic books (myDATA), tax returns, interconnected cash registers and POS, as well as from electronic platforms and other digital sources are compared with each other in order to identify deviations and behavior that indicate increased tax risk.
It is no longer complaints or random sample audits that determine which businesses tax inspectors will target. The Independent Authority for Public Revenue (AADE) has shifted its focus to data analysis, leveraging the digital footprint that almost every business transaction now leaves. Through millions of electronic cross-checks and algorithmic risk analysis models, tax risk profiles are compiled daily, which lead to the selection of businesses to be audited.
When an audit team appears at a business, an extensive information processing process has preceded it. Data collected from electronic books (myDATA), tax returns, interconnected cash registers and POS, as well as from electronic platforms and other digital sources are compared with each other in order to identify deviations and behavior that indicate increased tax risk.
As tax administration officials report, the goal of analysis systems is not to detect a single violation, but to identify specific patterns that are repeated in companies with delinquent behavior. “Each new piece of data increases or decreases the risk score of a company.”
