The numbers are sobering but not yet catastrophic. On Tuesday the IMF released its latest World Economic Outlook. Global growth this year is now projected at 3.1%, down from the 3.4% that chief economist Pierre-Olivier Gourinchas had been ready to announce before hostilities erupted on February 28th. Oil flows through the Strait of Hormuz have fallen by about 13%, liquefied natural gas by 20%. Brent crude spiked to $120 a barrel before easing; diesel and jet-fuel shortages have rippled through supply chains all the way to the Pacific islands. Headline inflation is expected to rise to 4.4%, some 0.6 percentage points above January’s forecast. 

Growth Outlook Changed

“We were planning to upgrade growth for 2026 to 3.4%,” Mr Gourinchas told reporters, “if not for the war.” Nevertheless, he also pointed to a source of resilience the world lacked in the 1970s: far lower oil dependence, more renewables and nuclear power, and greater efficiency. “The global economy has become much more efficient in terms of how much it needs oil to produce GDP,” he said. Even so, the Fund warns that in adverse scenarios, prolonged high energy prices and unanchored inflation expectations, growth could slump to 2.5% or even 2%. 

The impact is strikingly uneven. The Middle East and Central Asia have seen their growth forecast slashed by half, to 1.9%. Saudi Arabia’s projection dropped 1.4 points to 3.1%. Emerging and developing economies, which are net oil importers in more than 80% of cases, will feel the pain almost twice as sharply as rich ones. Food-price spikes from higher fertiliser costs will hit the poorest hardest. China’s growth is trimmed to 4.4%; the euro area’s to 1.1%. America, a net energy exporter at the margin, still looks set for 2.3%, though American motorists are already grumbling at the pump. 

5 Key Takeaways 

1. Middle East war triggers a large, asymmetric supply shock. Oil flows fell 13% and LNG 20%, spiking energy and fertiliser prices, disrupting global supply chains, and lifting headline inflation to 4.4%. Net importers, especially emerging economies, are hit hardest. 
2. Global growth downgraded to 3.1% for 2026. The IMF cut its forecast from a planned 3.4% due to the conflict. In worse scenarios with prolonged high energy prices, growth could fall to 2.5% or even 2%. 
3. Impacts are sharply uneven. Middle East and Central Asia growth slashed to 1.9%. Over 80% of countries are net oil importers and will suffer nearly twice as much as advanced economies; low-income nations face steeper food prices. 
4. Policy must stay disciplined and targeted. Kristalina Georgieva rejected export controls and broad price caps. Central banks should “wait and see” while protecting credibility; fiscal support must be temporary, well-targeted, and focused on rebuilding buffers. Strong institutions are the best shock absorbers. 
5. Domestic revenue mobilization has become essential. With fiscal space squeezed by high debt, real-time systems like TaxCore® close indirect-tax gaps (VAT often 30–50% of budgets in emerging economies), boost stable revenue without rate hikes, reduce evasion, and strengthen resilience, exactly what the IMF recommends. 

Who Are the Ultimate Shock Absorbers 

Two days earlier, on April 9th, the IMF’s managing director delivered her curtain-raiser speech under the pointed title “Cushioning the Middle East War Shock”. In measured yet urgent tones she described a textbook negative supply shock: large, global and deeply asymmetric. Prices of energy, fertilisers and even obscure inputs such as helium for semiconductors have surged. Pacific island nations, sitting at the end of the longest supply chains on earth, are particularly exposed. 

The shock travels through three channels: direct price and supply effects, shifting inflation expectations (short-term ones have risen, long-term ones mercifully remain anchored), and tighter financial conditions. Spreads on emerging-market bonds have widened; the dollar has strengthened. Yet Ms Georgieva was clear about what not to do. “Go-it-alone actions” such as export controls or blanket price caps would only distort markets and push global prices higher. Monetary policy should “wait and see” while guarding credibility; central banks must stand ready to raise rates if expectations begin to unmoor. Fiscal policy must stay targeted, temporary and consistent with medium-term frameworks. Most countries, she noted, urgently need to rebuild fiscal buffers after years of high debt and rising interest payments. 

The deeper message was institutional. “Strong fundamentals, institutions and structural policies represent the ultimate shock absorbers,” Ms Georgieva declared. Countries control their own resilience; when shocks arrive, those with robust domestic revenue systems and credible institutions fare best. The Fund stands ready to provide financing, demand could rise to $20–50 billion in the near term, but countries must do the real work at home. Her peroration was blunt: “War takes away everything we work for.” 

Tax Gaps and the Fiscal Space They Create 

It is here that a practical, already-proven technology offers an almost textbook response to the Fund’s call for stronger institutions and better domestic resource mobilisation. Indirect taxes, especially VAT and GST levied on energy, fuel and essential goods, typically make up 30-50% of budget revenue in developing and emerging economies. They are also the most stable source of income during crises. Yet the shadow economy, invoice fraud and weak enforcement mean billions leak away. 

TaxCore®, a real-time fiscalisation and e-invoicing platform, directly closes those gaps. The system captures every transaction at source, eliminates leakage without raising tax rates, and delivers an efficiency gain that the IMF has repeatedly endorsed. In Fiji and Samoa, where VAT and GST can constitute up to 40% of national budgets, the system has delivered immediate, verifiable extra revenue precisely when governments needed fiscal room to protect the vulnerable. The same story is playing out in the Republic of Srpska. Worldwide, TaxCore® has already processed more than six billion invoices. 

Indirect Taxes More Than Revenue Stream

“For many emerging economies, indirect taxes are far more than a revenue stream. Public finance relies heavily on it. Protecting that backbone requires precision, not approximation,”  Goran Todorov, CEO of Data Tech International said, and added, “Domestic revenue mobilization is often discussed in policy terms, but its real impact is technical. If transactions are not captured at source, fiscal policy is operating on incomplete truth.”

The timing could scarcely be better. Many of the economies the IMF flags as most vulnerable, small island states with fragile supply chains, sub-Saharan African importers with thin fiscal buffers, are exactly the places where indirect-tax collection matters most. By generating additional revenue without new borrowing, TaxCore® restores policy space. Governments can afford targeted support for the poorest rather than blunt, distortionary subsidies. In a world of supply shocks and tight financial conditions, that breathing room is priceless. “TaxCore was designed precisely for this reality, to give governments immediate visibility over economic activity and secure revenue without increasing the burden on compliant taxpayers,” Todorov concludes.

The system is also designed for the real world. It functions with patchy internet, integrates easily with existing infrastructure, and turns ordinary citizens into partners by issuing transparent e-receipts and enabling simple fraud reporting. The result is not just higher collection but greater legitimacy: taxpayers see their money supporting public services rather than disappearing into the shadows. That public trust, as Ms Georgieva reminded her audience, is itself a structural policy and one of the best shock absorbers available. 

No Silver Bullet, but a Sturdy One 

None of this is a substitute for the broader policy mix the Fund advocates, energy efficiency, diversification, credible monetary frameworks, and ultimately peace. Digital fiscal tools cannot repair damaged infrastructure in Qatar’s Ras Laffan complex or reopen the Strait of Hormuz. But they can give finance ministers the revenue certainty they need to act decisively rather than defensively. 

Delegates gathering in Washington this week will spend much of their time discussing scenarios, coordination and the Fund’s readiness to help. They would do well to spend a little time on the concrete. When every percentage point of GDP growth is harder to come by, and every extra dollar of fiscal space is precious, closing the indirect-tax gap is one of the most straightforward, high-return reforms on offer. TaxCore® does not promise miracles. It simply does what the IMF has long urged: mobilize reliable domestic revenue, strengthen institutions and give governments the tools to cushion shocks without self-inflicted damage. 

The spring meetings opened with a clear-eyed assessment of risk. They should close with an equally clear-eyed embrace of solutions already at hand. War may take away much, but competent, transparent tax administration can help ensure it does not take away the policy space needed to protect the vulnerable and keep the global recovery on track. 

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From the PITTA meeting stage, Goran Todorov, chief executive of Data Tech International, framed the stakes of the panel, called “Real-Time Transaction Monitoring: Modernizing GST/VAT Compliance in the Pacific”, bluntly. “Real-time transaction monitoring changes the way revenue administrations work. It gives you information at the moment it happens.”

He added the warning that became the session’s refrain: “If you wait for monthly or quarterly filings… you are already too late.”

Around him sat senior officials from Fiji, Samoa, Papua New Guinea and Vanuatu, each addressing different political, technical and economic constraints, yet arriving at a shared conclusion: real-time data may be the region’s most effective weapon against revenue leakage.

5 Key Takeaways

1. Real-time tax monitoring is operational: Pacific nations demonstrated that real-time transaction data is already reshaping how governments track sales, enforce compliance, and protect revenue. As Moderator Goran Todorov put it: “If you wait for monthly or quarterly filings… you are already too late.”

2. Fiji’s results show the power of transparency at scale: With over 677 million invoices, as of today, and 46.6 billion FJD in recorded sales now visible on a public dashboard, Fiji has shifted from speculation to data-driven oversight. Compliance Director Kelerayani Dawai says the change was immediate: “The data started coming to us.”

3. Samoa proved that political turbulence doesn’t have to derail reform: Despite early pushback and a change of government, Samoa’s TIMS system survived because real-time data brought fairness and credibility to the tax process. As CEO Fonoti Talaitupu Lia Taefu said: “Electronic invoicing gave us visibility we never had.”

4. Vanuatu exposed hidden revenue and changed business attitudes: A pre-launch manual survey revealed 2 billion Vatu in previously unrecorded sales. Once TaxCore® implementation started, businesses adapted quickly. The country is now enrolling taxpayers and accrediting vendors into the system, a process Brechtefeld said is proceeding faster than expected

5. PNG sees real-time data as the key to trust in the tax system: With widespread mistrust and inconsistent assessments, PNG is betting on nationwide GST monitoring to restore confidence. Commissioner Samuel Loi argues: “We need accurate information at the point of sale. That’s where the tax is lost.”

Fiji: Proof in the Data

Fiji was the first mover, adopting digital fiscalization through VAT Monitoring System (VSMS) powered by DTI’s Taxcore® in 2017. Compliance Director Kelerayani Dawai explained why the country pushed ahead: consumption taxes are central to the national budget. “VAT or GST is 40% of Fiji’s revenue,” she said. “So that is why we have taken this step to be the first in the region.”

Before the system, Fiji relied on returns that often did not match reality. The new data stream changed the dynamic immediately. “Once the system went live, we saw businesses starting to issue receipts correctly. We didn’t have to chase them. The data started coming to us.”

The numbers she cited emphasized the Public Dashboard that was recently released and that shift: more than 656 million invoices, 46.6 billion Fijian dollars in recorded sales, and over 530,000 receipt scans by consumers verifying authenticity for every Fijian to see.

What this yielded was rare in tax administration: spontaneous compliance. “We are no longer guessing,” she said. “We can see what is happening.”

Samoa: Real-Time Tax Monitoring Through Turbulence

On another hand, Samoa’s implementation was more turbulent. Its real-time system, known as TIMS once again powered by DTI’s signature software, drew early resistance from small enterprises and became entangled in a political transition in 2021.

“When the new government came in, one of the changes they wanted to see was the removal of TIMS,” recalled Fonoti Talaitupu Lia Taefu, chief executive of the Ministry of Customs and Revenue.

To keep the system alive, officials returned to consultations and parliamentary committees. “You cannot continue with something that doesn’t have political support,” she said.

Ultimately, the government accepted the system. What convinced lawmakers, Fonoti said, was the way real-time data leveled the playing field and stabilized revenue. “Electronic invoicing gave us visibility we never had,” she said. “It reflects what is actually happening in our economy.”

It was not a story of uninterrupted progress, she added, but one of persistence. “Our staff understand the data, our taxpayers understand their obligations, and the system helps both sides.”

Vanuatu: Measuring the Invisible

In Vanuatu, the one of the newest adopters, the Inland Revenue Department plans to use real-time monitoring to expose what many suspected but could not prove: the country’s sales tax base is far larger than the records suggested.

Ahead of the Vanuatu Sales Monitoring System (VSMS) implementation which is another instance of TaxCore®, officials hired students to manually count transactions in retail shops to compare against reported sales.

George Brechtefeld, who leads the VSMS program, described the findings: “The sales in December 2023 showed that we collected an extra 2 billion Vatu.” For a small economy, the discovery was staggering. It also shifted attitudes among businesses.

“Our plan is that by November and December, we should start a roll out of the taxpayers, especially those who already have a POS system and they should get their system accredited into the VSMS, then once that is done they can transmit data into TaxCore.” Brechtefeld confirmed.

Local revenue authority has been encouraging taxpayers to pay for their own solution, specifically the external sales data controller. Then once they can transfer the data to TaxCore, intention of the Government is to refund the money to the taxpayer for the initial investment into devices.

Papua New Guinea: Trust and Scale

Papua New Guinea, the region’s largest and most complex economy, has recently signed a contract with DTI for the nationwide rollout of the Goods and Services Tax Monitoring System (GMS) powered by our TaxCore®. This way, PNG is stepping straight into the digital times. And, for Samuel Loi, Commissioner of Tax, the urgency is driven as much by public mistrust as by administrative challenges.

“The answer is yes… mistrust between taxpayers and the government is still strong,” he said. He attributed this partly to inconsistent or delayed assessments: “Taxpayers in PNG often feel uncertain about the assessments and whether they are fair or not.”

Real-time data, he said, can close that gap, especially for GST, which PNG aims to make its top revenue source. “We need accurate information at the point of sale. That’s where the tax is lost, and that’s where we must have control.”

With more than 85 percent of the population engaged primarily as consumers rather than formal employees, Loi argued that transparency at the transaction level is essential for equity.

Real-Time Tax Monitoring: A Regional Message

If the Pacific once followed global tax trends from afar, the officials here argued the opposite is now true. Todorov returned repeatedly to the question of fairness: “The moment of creation of the invoice… a seller and a buyer are aware of the transaction, as well as the government. All three parties have the same perception of the data, and you will agree that is only fair.”

The leaders on stage echoed the point in their own ways. “We have seen the difference,” Dawai said. “This supports the structure we need for the future,” Fonoti added. “When you have real information, you can protect your revenue,” Loi said. And Brechtefeld captured the sentiment most simply: “It works.”

The Broader Appeal of Pacific’s Model

Around the world, revenue authorities are searching for reliable ways to close revenue gaps without imposing new taxes or burdensome audits. What the Pacific demonstrated in a single morning was a model based on real-time facts that practically show that domestic revenue mobilization is possible within the current financial settings.

Finally, in a region often perceived as peripheral to global policy debates, the message was unambiguous: transparency is possible, affordable and operational, not theoretical. And the implications go well beyond the islands now leading the way.

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Taxes that should fund public services vanish in cash economies where transactions go unrecorded. Goods and services pass across borders and into markets without ever entering official registers. Outdated reporting systems bury tax officials under stacks of paper that fade faster than the memories of those who issued them. For a continent that will soon hold a quarter of the world’s population, such inefficiencies are barriers to growth, equity, and political stability. 

This is the context in which the discussion around revenue assurance has shifted. No longer an administrative exercise, it has become a decisive factor in whether governments can deliver for their people. And at DGA2025, the annual gathering where digital governance takes center stage, one theme will be resonating DTI’s approach: Africa needs the next-generation tax monitoring and reporting solution. 

DTI at DGA2025: The Tax Gap That Refuses to Shrink 

Unfortunately, the continent’s fiscal hole is visible and expanding. According to African Union estimates, countries collectively lose tens of billions of dollars every year through tax evasion, avoidance, and underreporting. Domestic resource mobilization, the polite term for improving tax collection, has been a staple of policy reports for over a decade. Yet, progress remains slow. 

Part of the problem lies in the absence system or having a non-functional system. In many African countries, businesses still handwrite receipts, store them in filing cabinets, and present them to auditors months later, if at all.  Tax authorities have no ability to verify what is accurate and what has been altered. In the meantime, governments run deficits, and citizens lose confidence that taxes are collected fairly. 

This vicious cycle affects budgets, yes. Moreover, it shapes politics as well. When citizens suspect that the tax net is full of holes, they question why they should comply. When businesses know competitors can underreport with little risk of detection, they feel disadvantaged. And when governments lack reliable revenue, they turn to external borrowing, often at steep interest rates, locking future generations into repayment cycles that stifle development. DTI will focus on finding answers to these questions as well, during the participation at DGA2025.

Why Technology Matters Now? 

The call for “next-generation” digital tax monitoring and reporting solution is quite pragmatic. Traditional audit-based tax systems were built for economies where transactions happened on paper, within easily tracked supply chains, and in relatively small numbers. Africa’s economies today are different. 

From the sprawling informal markets to the fast-growing digital payments sectors, millions of transactions happen every second. Capturing them with old methods is impossible. Now more than ever, what is needed is not more auditors with clipboards but systems that can record data in real time, analyze it instantly, and flag inconsistencies before they turn into losses. 

Countries in the Pacific, where DTI is heavily engaged, like Fiji and Samoa have shown what happens when governments shift to real-time monitoring of sales and value-added taxes. Compliance rates rise. Honest businesses welcome a fairer playing field. And tax authorities finally have the clarity they need to plan national budgets with confidence. African governments should examine these examples closely, as they won’t seem as distant experiments but as models that are highly adaptable to their own realities. 

DTI at DGA2025: View from the Ground 

For years now, DTI has worked hard to build TaxCore®, a COTS solution that fits the technical capacity and economic conditions of each country we work in. In practice, that means that our solution is capably to thrive in various tech environments, record every transaction at the point of sale, issue secure digital receipts and feeds the data instantly into tax authority databases. It is a system that removes the uncertainty of manual reporting and builds a continuous chain of evidence from seller to state. 

From DTI’s perspective, the value of such a system goes beyond technology. TaxCore® brings fairness into the fiscal relationship. Taxpayers see that compliance is not discretionary, but they also gain relief from arbitrary audits and burdensome paperwork. Governments receive clarity not through guesswork but through data they can trust. 

“Revenue assurance is not about raising taxes,” as Goran Todorov, CEO at DTI explained in a recent discussion. “It is about collecting the right taxes, consistently and transparently. When the system is fair, trust follows.” This emphasis on fairness should resonate across African capitals too. From Kigali to Lusaka, finance ministries understand that their citizens will support reforms only if they believe the rules apply equally to everyone. And this is exactly why digital tax monitoring becomes an excellent administrative tool. A tool that goes far beyond what is technically intended for, as it can serve as a pragmatical instrument for building legitimacy. 

The Informal Sector: Africa’s Persistent Puzzle 

Still, the road ahead is not simple. Africa’s vast informal economies, ranging from open-air markets to small family enterprises, pose a challenge we saw in other regions of the world. By some estimates, more than 80 percent of employment in sub-Saharan Africa exists outside the formal system. Asking these businesses to suddenly comply with digital reporting may seem unrealistic. 

Yet, this is precisely where next-generation revenue assurance can make a difference. Instead of expecting informal vendors to fill out paperwork, governments can offer them simplified digital tools linked directly to tax authority platforms. Mobile receipts, QR codes, and offline-enabled applications can capture data without disrupting daily trade. 

Countries that have experimented with such approaches report early signs of progress. Vendors who once resisted taxation begin to accept it when compliance becomes simple, when systems are accessible in local languages, and when the benefits, such as access to credit or eligibility for government programs, are visible. 

DTI at DGA2025: A Continent-Wide Moment of Choice 

What makes the discussion urgent now is not only the scale of the losses but also the timing. Africa is entering a demographic surge that will shape the global economy for the rest of the century. By 2050, the continent’s population will double, with millions more needing schools, jobs, and infrastructure. Governments cannot meet this demand if they continue losing revenue to inefficiency and underreporting. 

International donors have long filled some of the gaps, but dependence on aid is increasingly seen as politically and economically unsustainable. Domestic revenue is the only durable source of funding for development. That is why finance ministers from across the African continent are pressing harder than ever for practical solutions. 

At DGA2025, where digital governance leaders from around the world will gather, revenue assurance is not expected to dominate conversations, but DTI will raise this important topic across the board. It is obvious that African officials know that the continent cannot afford another decade of delay. They also know that adopting next-generation systems requires political will, technical training, and above all, trust between governments and citizens. 

The Stakes for Global Confidence 

We must be frank. Africa’s fiscal debate is not confined within its borders. International lenders, investors, and rating agencies watch closely. When governments demonstrate they can collect taxes efficiently, their creditworthiness improves and interest rates on loans decline. Thus, foreign direct investment becomes more attractive. Revenue assurance we talked earlier, in this sense, is not only about balancing national budgets but also about strengthening Africa’s place in the global financial system. 

The opposite is equally true. Countries that fail to modernize remain trapped in cycles of debt and dependency, forced to pay higher premiums for capital while struggling to maintain basic services.  

Toward a Fair Fiscal Future 

DTI’s message at DGA2025 will echo this reality: practical digital tax monitoring is essential. It is the foundation of fair and transparent fiscal governance. With the right tools, Africa can reduce its dependence on external financing, restore confidence in its institutions, and give citizens tangible proof that taxes collected are taxes put to work. 

As Sam Koim, the Commissioner General of Papua New Guinea’s Internal Revenue Commission, recently said in a related discussion about his own country’s reforms: “The idea is not for taxpayers to pay more, but to pay right.” And, Africa’s challenge is no different. The continent does not need higher taxes; it needs taxes collected fairly, consistently, and transparently. That is the promise of next-generation revenue assurance and the reason it cannot wait. 

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The company views its presence as a chance to showcase its solutions, share insights on real-time transaction monitoring, and support the ongoing efforts of regional authorities to improve transparency, efficiency, and trust in taxation. 

A Panel of Distinct Perspectives 

From our perspective, one of the most closely followed sessions focused on the modernization of goods and services tax (GST) and value-added tax (VAT) compliance through real-time transaction monitoring. The panel, moderated by Goran Todorov, Chief Executive Officer of Data Tech International (DTI), drew significant attention from delegates who see tax modernization as a cornerstone of economic stability in the region. 

The contributions of four senior Pacific tax administrators, from countries that have already implemented DTI’s TaxCore® or are currently in the process of doing so, captured the close attention of the other delegates throughout the discussion. Tax system digitization emerged as a central element in strengthening budget stability, with the depth of the discussion highlighting both the technical and strategic dimensions of digital tax administration. The exchange underlines how real-time VAT monitoring systems enhance transaction visibility, close compliance gaps, and support informed policy decisions across the Pacific. 

Ms. Kelerayani Dawai, Compliance Director at the Fiji Revenue & Customs Service (FRCS), reflected on Fiji’s early adoption of digital tax systems, highlighting lessons from implementation. Mrs. Fonoti Taefu, Chief Executive Officer of Samoa’s Ministry of Customs and Revenue (MRC), spoke candidly about the determination needed to keep tax reform on track during the pandemic. Mr. Sam Loi, Commissioner for Taxation at Papua New Guinea’s Internal Revenue Commission (IRC), detailed his country’s ambitious national rollout of real-time monitoring, while Mr. George Brechtefeld, Acting Manager for Design and Monitoring at Vanuatu’s Department of Customs & Inland Revenue (CIR), explained how a targeted solution will close long-standing compliance gaps. 

Each intervention highlighted the diversity of national experiences while underscoring a shared understanding that traditional reporting models no longer meet the needs of governments responsible for financing development in an uncertain global environment. 

PITAA 2025 Meeting: Data Tech International’s Role 

For DTI, the discussion in Tonga emphasized the growing demand for systems that bring clarity and trust to tax collection. The company’s flagship solution, TaxCore®, has already been deployed in multiple jurisdictions worldwide, and its presence in the Pacific is steadily expanding. 

Speaking after the panel, Mr. Todorov remarked that Pacific tax administrations are at a decisive moment. “The momentum for real-time monitoring is now undeniable,” he said. “Authorities are no longer asking if they should move in this direction, but rather how quickly and effectively they can do it.” 

DTI views the Pacific as a region facing distinctive challenges, including dispersed populations, limited connectivity, and substantial informal economies, yet also as a region where TaxCore® is already delivering measurable benefits. Through the creation of systems that allow tax authorities to record and validate transactions as they happen, governments can close revenue gaps, reduce compliance costs, and strengthen public confidence in the fairness of taxation. 

Why Real-Time Monitoring Matters? 

No one can argue, the move towards real-time transaction monitoring is a technical upgrade. Also, it represents a shift in how tax administrations approach compliance. Traditional models, built on delayed reporting and post-facto audits, often leave revenue authorities one step behind taxpayers. By contrast, real-time reporting provides immediate visibility, making it far harder for tax evasion to go undetected. 

For Pacific economies, many of which depend heavily on consumption taxes, this shift is especially relevant. Governments need predictable revenue streams to finance infrastructure, health care, education, and climate adaptation. When tax systems underperform, the burden often falls disproportionately on external aid or borrowing. Real-time tax monitoring helps reduce that vulnerability by creating stronger domestic revenue bases. 

The Broader Context of PITAA 2025 

PITAA has long served as a forum for member jurisdictions to exchange expertise and coordinate their efforts. This year’s theme, “Pacific Synergy: Weaving a Sustainable Future through Innovative Laws, Efficiency and Strategic Revenue Mobilization,” reflected the urgency of finding collective solutions. 

Tonga’s hosting of the event carried symbolic weight. The country has weathered both the COVID-19 pandemic and the devastating Hunga Tonga–Hunga Ha‘apai eruption, experiences that underlined the fragility of small island economies. In Nuku‘alofa, participants repeatedly circled back to the idea that the region needs cooperation paired with modern tools.

From DTI’s vantage point, the Pacific is showing that practical innovation does not require massive budgets or decades of planning. Instead, well-designed digital systems drive progress by adapting to national circumstances while still adhering to international standards.

PITAA 2025 Meeting: TaxCore® Significance 

TaxCore® is central to this vision. By giving tax authorities, the ability to monitor receipts in real time, the platform reduces opportunities for under-reporting, provides taxpayers with greater certainty, and generates reliable data for policy planning. As Mr. Todorov stressed, “Technology must serve both the administration and the taxpayer. Transparency is not a one-way street; it works only when all stakeholders see value in the process.” 

DTI also recognizes that technology alone is not sufficient. Legal reform, institutional training, and communication with the business community are equally critical. The company, therefore, positions itself not only as a supplier of software but as a partner working alongside governments to meet long-term revenue objectives. 

In conclusion, Pacific tax administrators in Nuku‘alofa this week demonstrated their determination not to remain on the sidelines of global tax modernization. On the contrary, they are actively advancing, country by country, with solutions tailored to their specific circumstances. DTI’s TaxCore® is well-positioned to continue supporting this ongoing journey. 

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Although the conference floor was really busy, I’ve managed to sit down with the head of Fiji Revenue and Service Mr Udit Singh. And, I was glad I did. The conversation carried the weight of experience and authority. Fiji has faced the challenge of modernizing VAT collection while keeping businesses engaged, a task that many Pacific nations are confronting right now. And yes, this discussion served another occasion as well. As we look forward to the upcoming PITAA Annual Heads Meeting 2025 in Tonga, Mr Singh will join a panel that I am given an opportunity to lead on Real-Time Transaction Monitoring. Thus, this interview acts as a prologue to the mentioned event.  

5 Key Takeaways

1. Real-Time Digital Monitoring Boosts Compliance: Fiji’s VAT Monitoring System (VMS) tracks every transaction, reducing underreporting and ensuring transparency at the point of sale, strengthening revenue collection without raising tax rates.
2. Stakeholder Engagement is Critical: Early and ongoing communication with businesses, training, and consultation build trust and foster voluntary compliance, turning a top-down rollout into a collaborative process.
3. Capacity Building Ensures Success: Practical guidance and hands-on support for both tax officials and business owners are essential; technology alone cannot achieve effective compliance.
4. Transparency and Fairness Drive Participation: By making VAT reporting visible and consistent, the system encourages voluntary compliance and positions businesses as partners in public service rather than subjects of regulation.
5. Political and Legal Support is Vital: Sustained government commitment ensures that technical challenges, misinformation, or stakeholder pushback do not derail implementation, providing a stable environment for cultural and systemic change in tax compliance.

Pacific VAT Compliance: Fiji’s Shift to Digital Monitoring 

For years, Fiji relied on businesses to self-report VAT. On paper, the system appeared straightforward. In reality, many transactions slipped through. Cash payments went unrecorded, and compliance depended on voluntary accuracy. The result was revenue loss and an incomplete view of the economy. This is exactly why the country went down the road of digital monitoring.  

“The biggest improvement has been a clear rise in VAT compliance,” Udit explained. “We also see more voluntary declarations and better alignment between sales data and tax returns. VAT monitoring system (VMS) reduced underreporting and gave us transparency at the point of sale, which strengthened revenue collection without increasing tax rates.” 

The system works because it tracks every transaction in real time. Each e-invoice becomes an official record. The government can monitor revenue as it happens, and businesses have clarity on what they owe. 

Building Trust During Implementation 

Rolling out the VMS powered by TaxCore in Fiji was far from straightforward. Many businesses initially resisted, uncertain about what the system would mean for them. Some worried it might expose errors or invite penalties, while others struggled with technical limitations. Misinformation also spread, with rumors suggesting the system was designed to monitor private business activity rather than improve compliance. 

To address these challenges, FRCS engaged directly with stakeholders. Officials visited offices, shops, and market stalls to explain the system in clear, practical terms. They organized training sessions, both in-person and online, giving staff and business owners the confidence to use the new technology. Consultation forums allowed businesses to raise questions and provide feedback, turning what could have been a top-down rollout into a collaborative process. A dedicated support team was also established, ready to troubleshoot issues and guide users whenever problems arose. 

Mr. Singh highlighted that building trust was as important as installing the system itself. “We wanted businesses to see the system as a partner, not a threat,” he said, emphasizing fairness and transparency over surveillance. By showing that the system aimed to create a level playing field rather than punish anyone, authorities encouraged voluntary compliance and cooperation. 

The focus on human engagement proved essential. Technology alone could not have succeeded without consistent communication, reassurance, and hands-on guidance. Through patient explanation, practical support, and open dialogue, the rollout gained acceptance, laying the foundation for a system that strengthened compliance, fostered trust, and gave both government and businesses clarity about their responsibilities. 

Pacific VAT Compliance: Experiences for Papua New Guinea 

Fiji’s experience provides worthy lessons for Papua New Guinea as it moves on a similar path. Mr. Singh emphasized three key takeaways. First, stakeholder engagement must begin early. Businesses are far more receptive when they are part of the conversation from the outset. Understanding the purpose of the system, its benefits, and how it affects daily operations reduces resistance and builds cooperation. 

Second, capacity building is necessary. Both tax officials and business owners need training to use the system effectively. Without practical guidance and hands-on support, even the most advanced technology can fail to deliver. Fiji’s rollout included workshops, training sessions, and ongoing support, ensuring users gained confidence and clarity in every step. 

Third, strong political and legal backing is vital. Projects of this scale inevitably encounter challenges, technical hiccups, misunderstandings, or temporary pushback from stakeholders. Governments must remain committed so that these obstacles do not derail progress. “When issues arise, politicians must know there is a plan and a goal,” Mr. Singh explained. “The tax authority clears obstacles and makes the process straightforward for everyone involved.” 

Taken together, these lessons show that successful implementation depends on more than technology. Early communication, practical training, and sustained political support create an environment where compliance is achievable, understandable, and accepted. For Papua New Guinea, these insights offer a roadmap to build a system that strengthens revenue collection while maintaining trust and collaboration between government and businesses. And far beyond, as the better VAT compliance in Pacific becomes easier to achieve. 

Digital Transparency and Fairness 

The VMS powered by TaxCore does more than simply record transactions. It creates a level of digital transparency that allows the government to see economic activity in real time. Mr Singh emphisized that the system can quickly identify taxpayers who were previously unregistered or reporting inaccurately. By bringing these activities into view, the system encourages voluntary compliance, making it clear that everyone is treated equally. 

“All taxpayers see that the system is fair,” he said. “Those who pay taxes know the authority is acting with integrity. Compliance improves because people understand the rules and see them applied evenly.” 

This transparency extends beyond numbers on a screen. It strengthens trust between the government, businesses, and citizens. When people perceive that the rules are applied consistently and fairly, they engage with the system willingly. Businesses are not merely monitored, they become active participants in public service. Compliance shifts from being a requirement imposed from above to a shared responsibility recognized by all. 

Through the combination of real-time data with visible fairness, VMS fosters a culture where paying taxes is understood as part of contributing to the community. It is a system that clarifies obligations, reduces uncertainty, and builds confidence in the institutions responsible for managing the country’s resources. 

Pacific VAT Compliance: A Cultural Shift Toward Compliance 

The impact of the VAT Monitoring System reaches far beyond numbers and data. Businesses now comply because the system makes evasion difficult, visible, and inconsistent with community expectations. Compliance emerges naturally when rules are applied fairly and consistently. 

“The effect is quiet but powerful,” Udit Singh said. “The system supports itself because people see it working, and they follow the rules willingly. It aligns responsibility with action.” He added that the visible fairness of the system changes how businesses approach their obligations. “When everyone knows the rules are applied evenly, it removes doubt. People feel that paying taxes is simply part of how business should be done.” 

Mr. Singh stressed that the system does more than enforce rules; it builds understanding. “Businesses start to see themselves as partners in public service rather than just subjects of regulation,” he said. “When compliance is visible, predictable, and fair, it encourages voluntary participation, which is far more sustainable than forcing adherence through penalties.” 

Eyes on Tonga and the Pacific 

The upcoming PITAA Annual Heads Meeting in Tonga presents an opportunity to share these lessons across the region. Pacific nations face similar challenges: dispersed populations, informal economies, and limited technical capacity. Fiji’s experience shows that clear communication, careful planning, and political support are crucial to success. 

Mr Singh’s insights provide a practical guide. Real-time transaction monitoring is no longer theoretical, but a proven method for making tax collection fairer and more reliable. Countries in the Pacific can use these lessons to implement systems that work for their people, their businesses, and their governments. 

“Thank you for trusting Data Tech International and working with us,” I told Mr Singh as our conversation ended. He smiled, acknowledging the effort yet confident about the path ahead. 

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The meeting had two objectives: to explain the upcoming VMS enhancements and the EFD framework, as well as to address the developers’ questions in an open dialogue during the Q&A session.

Meeting details

During the first part of the meeting, Ms. Kelerayani Dawai, Compliance Director at FRCS, addressed the implementation of the new VAT requirements in the VMS system, outlining strategies to manage the ongoing changes while enhancing service delivery.

DTI’s Chief Technology Officer, Mr. Ivan Pavlovic, followed up with a detailed review of the most significant changes and key enhancements resulting from the transition from VMS version 2 to version 3. It is notable to mention that this transition is in alignment with Phase 3 of FRCS’s 2025/2026 National Budget Announcement.

Backward compatibility between v2 and v3 is assured

During this transition period, which FRCS confirmed will last until 31.12.2026, DTI ensures backward compatibility between the previous and the new system. All EFD solutions currently operating under the v2 model will continue to work with the new system until the extended transition deadline.

This measure confirms FRCS’s confidence that all vendors will adapt to the new version of the system within this timeframe and encourages them to begin adaptation and testing as soon as possible to ensure compliance within the extended timeline.

The developers who were both in the room and online openly voiced their questions to the FRCS and DTI representatives

The Q&A session

At the end of the meeting, an interactive Q&A session took place, during which vendors attending both online and in person could discuss changes, voice their concerns, and raise current issues regarding the transition from version 2 to version 3 of the VMS system.

3 key takeaways from the meeting

1. Supplier accreditation & conduct. Suppliers must apply for accreditation of POS/E-SDC (reg 8), comply with conduct rules (reg 15). Accreditation can be revoked where requirements aren’t met (reg 10).
2. Taxpayer obligations. Taxpayers must use compliant EFDs and issue fiscal invoices (regs 16–18). FRCS may audit and investigate (reg 27) and enforce compliance (reg 28).
3. FRCS (CEO) role & protocols. FRCS sets guidelines and protocols for communication/data exchange (regs 20–21) and publishes verification procedures (reg 25).

In conclusion

To ensure a level playing field and a stronger market of technically compliant solutions, DTI is providing equal technical support to every vendor and a free-of-charge accreditation process to verify compliance. We have designed this approach to enhance service quality, promote healthy competition, and provide taxpayers with a broader choice of compliant EFD offerings. Ultimately, it results in better outcomes for taxpayers.

Acknowledging the message the VMS developers conveyed to both FRCS and DTI, we reaffirm our commitment to supporting and strengthening effective communication among the three parties: DTI, FRCS, and third-party vendors.

DTI’s equal-support, zero-fee accreditation model is deliberate: it expands the pool of technically compliant solutions and raises the bar on service quality through competition. The result is better outcomes for taxpayers.

Final remarks

As a reminder, our journey in Fiji began in 2017, and since then, we have continuously supported and enhanced DTI’s flagship product, TaxCore®. DTI’s longstanding presence in the country, especially considering the rapid pace at which new technological solutions emerge, stands as a testament to the trust and strong partnership that exists between our company and Fiji’s FRCS.

Given the trust that FRCS has placed in our product, it is only natural for us to continue supporting and investing in this initiative. The recent upgrade to version 3 demonstrates that our product remains fully operational, future-ready, and continuously enhanced to address upcoming challenges. As always, we emphasize our strong commitment to fighting tax evasion.

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Our participation in the CATA conferences has become a valued tradition within our organization, one that we are proud to continue. Having attended on several previous occasions, we remain committed to maintaining our presence and supporting the event.

The CATA conferences provide a valuable platform for staying informed about the latest developments in fiscalization. Bringing together leading experts in tax system modernization and digital transformation, the event offers a unique opportunity to exchange insights and explore emerging trends in the field.

Significant Milestone Achieved

However, what sets this year’s conference apart from previous editions is a significant milestone: for the first time, the Heads Meeting is being held as a separate program from the Technical Conference. This distinction is particularly important, as the clearly defined agendas allow participants to better navigate and focus on either technical matters or policy-related discussions. Leaders and delegate alike warmly received this change, as it promises to enhance the overall experience and foster more meaningful engagement from all attendees.

Keeping with tradition, the host country opened the conference with welcoming remarks delivered by the Commissioner General of the Internal Revenue Commission (IRC), Mr. Sam Koim. He warmly welcomed delegates and emphasized the significance of hosting the event in Papua New Guinea. This year’s conference had the theme: “Aligning Global Standards with Local Solutions: Evolving Tax Systems in the Digital Age.”

Key Takeaways from the CATA Conference

Strong collaboration and dialogue are essential: The conference provided a valuable opportunity to strengthen relationships among tax leaders from across the Commonwealth. It fostered meaningful dialogue on the future of tax administration in an increasingly dynamic and evolving global environment.

The focus is on innovation and digital transformation: A central theme throughout the conference was the role of innovation and emerging technologies in modernizing tax administration. Key discussions focused on the use of blockchain, real-time predictive data, and advanced analytics to enhance revenue collection, as well as the application of AI, automation, and personalized services to improve the overall taxpayer experience.

Regional collaboration is of paramount importance: Analyzing and drawing lessons from the fiscalization experiences of other countries in the region is essential for avoiding common pitfalls and ensuring a smooth, effective implementation. Throughout the discussions, participants emphasized the importance of peer learning and highlighted the need to develop tailored approaches that reflect each country’s specific context and needs.

How to best integrate global tax standards into national systems: Achieving alignment between global tax norms and local needs requires strong peer learning and regional collaboration. Participants also cautioned against an overreliance on international standards without proper adaptation, emphasizing the importance of contextualizing global frameworks to fit each country’s unique economic, legal, and administrative landscape.

Our Contribution to the Conference

Data Tech International proudly participated in CATA’s working group sessions under the theme “Harnessing Innovative Technologies for Revenue Growth: Bridging Strategy and Practice.” During these sessions, leaders from across the Commonwealth, such as Papua New Guinea, Fiji, Nigeria, or Malaysia, exchanged ideas, issued key recommendations, and defined follow-up actions. Among the most important topics discussed, the following stood out:

• Technology alone is not sufficient: Policy objectives must be aligned with the use and implementation of new technology. Technology goes hand in hand with improving taxpayer service and organizational reform (including a broader tax policy reform).
• Unitary invoicing is a powerful tool: To eliminate invoice fraud and improve VAT compliance, the buyer, the seller, and the tax authority must be simultaneously linked at the point of transaction.
• Local adaptation is the key to success: A successful implementation depends on local adaptation; systems need to be and remain relevant and accessible to both taxpayers and frontline staff equally.
• Flexible regulations over rigid ones: Experience proves that adaptive regulations, open to the idea of leaving room for local innovation and vendor participation, are more beneficial than prescribing specific devices or technical standards.
• International collaboration, strongly advised: Using learning platforms to exchange implementation experiences positively contributes to increasing regional leverage.
• Future topics to explore together: Leaders agreed that conducting maturity assessments, launching regional digital transformation clinics, improving collaboration with tech industry leaders, or enhancing digital tax policy frameworks are important milestones to achieve by the end of this year and the beginning of the next.

Final Word

We consider the 45th CATA Conference to be a great success, having brought together representatives from over 30 member countries. In addition to this strong participation, the event also welcomed delegates from key international and regional organizations, including the OECD, IBFD, IMF, World Bank, CIAT, PITAA, and WATAF.

This level of engagement reflects the deep commitment and collaboration among CATA’s leadership and partners. It also highlights the significant efforts made in the planning, organization, and coordination of the conference — efforts for which we are sincerely grateful.

From our perspective, this year’s CATA Conference could not have been more timely. The Pacific region is currently experiencing a significant wave of new fiscalization implementations, making the conference especially relevant. Notably, in Vanuatu and Papua New Guinea, DTI is preparing to deploy its TaxCore solution, aimed at making tax collection and compliance more streamlined, efficient, and technologically advanced than ever before.

DTI is proud to have contributed to the Commonwealth’s ongoing discussions by sharing its expertise in the field. We remain committed to strengthening our relationships with new and existing stakeholders while continuing to consolidate our presence in the region, a region that has always been, and continues to be, of strategic importance to us.

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Elevating EBM as a Pillar of Tax Compliance

A decade ago, I contributed to the development and deployment of the Electronic Billing Machine (EBM) system in Rwanda, a pioneering initiative that revolutionized the country’s approach to tax compliance. Designed to combat underreporting and tax fraud, the EBM system became a cornerstone of Rwanda Revenue Authority’s (RRA) efforts to enhance revenue collection and foster new culture of compliance among taxpayers. Today, its success serves as an inspiring model for other African countries grappling with similar challenges.

During the ATAF Annual Meetings, the emphasis on scalable and replicable solutions resonated strongly with the vision behind the EBM system. My discussions with representatives from member states revealed a growing interest in adopting e-invoicing systems as a means to modernize tax administration frameworks and reduce the shadow economy’s impact on national revenue.

TaxCore®: A Game-Changer in Revenue Assurance

TaxCore®, the flagship product of DTI, has emerged as a global benchmark in secure and flexible revenue assurance systems for tax authorities. Designed to seamlessly integrate with existing tax ecosystems, TaxCore® enhances transparency, simplifies compliance processes, and minimizes administrative burdens. During the meetings, I had the opportunity to showcase how TaxCore® aligns with ATAF’s broader goals of leveraging digital technologies to create efficient, fair, and accountable tax systems.

Particular attention was given to the system’s ability to support real-time reporting and analytics, enabling tax authorities to proactively monitor compliance trends and address gaps. In light of the ATAF outcome statement’s call for innovative solutions to improve tax revenue collection, TaxCore® stands as a practical tool for achieving these objectives.

Driving Forward E-Invoicing Initiatives

E-invoicing emerged as a focal point of the ATAF Annual Meetings, with member states expressing a collective commitment to advancing digitalization in tax administration. My approach highlighted the synergies between the EBM system and e-invoicing initiatives, demonstrating how these solutions can transform tax compliance landscapes while fostering economic growth.

The discussions underscored the importance of capacity building and collaboration among ATAF member states to ensure the successful implementation of e-invoicing systems. Drawing from DTI’s extensive experience in delivering tailored fiscalization solutions, I proposed strategies for phased adoption, emphasizing the value of stakeholder engagement and robust technical support.

Strengthening Partnerships for a Digitally-Driven Future

The ATAF General Assembly meetings in Kigali also provided an invaluable platform to strengthen partnerships with key stakeholders, including international organizations, regional economic communities, and private sector players. These collaborations are essential to scaling up e-invoicing initiatives across Africa and achieving sustainable tax revenue growth.

As a firm advocate of continuous improvement in tax systems, DTI remains committed to supporting ATAF’s vision of fostering inclusive development through effective and innovative tax administration. By leveraging the proven success of the EBM system and the advanced capabilities of TaxCore®, we aim to empower tax authorities to navigate the complexities of a digital economy with confidence and resilience.

Conclusion

In conclusion, the ATAF General Assembly 2024 reaffirmed the transformative potential of digital tax administration solutions in addressing Africa’s revenue challenges. In other words, through pioneering systems like Rwanda’s EBM and DTI’s TaxCore®, we are demonstrating that innovation and collaboration can drive meaningful progress in enhancing tax compliance, transparency, and efficiency. That is why, as we look ahead, the momentum generated by this event serves as a catalyst for advancing e-invoicing initiatives and building resilient tax ecosystems across the continent.

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TaxCore© is at the forefront of digital tax transformation, integrating data from fiscal devices into a unified, real-time system that allows tax authorities to track financial transactions, identify irregularities (using AI), and plan audits effectively. Given the volume of collected data, which includes information on hundreds of thousands of taxpayers and records over 15 million new invoices daily, the system requires the application of advanced processing and analysis methods, such as data mining and modern analytical approaches. Advanced analytical methods enable detailed and rapid analysis, pattern identification, and decision-making based on a large volume of data. The large database provides a comprehensive overview of tax activities but simultaneously poses a challenge for efficient and timely searching and analysis.

For tax authorities to identify irregularities and plan inspections, the new advanced functionality of TaxCore© in the form of an AI module employs sophisticated technologies and algorithms for more detailed processing and data analysis. The application of machine learning (ML) methods to large databases allows in-depth analysis of the chronological behaviour of taxpayers, based on which the system forms risk categories for taxpayers. Patterns of taxpayer behaviour serve as historical indicators of various attributes, according to which, depending on the degree of alignment with recognised patterns, the system assigns taxpayers an appropriate risk level. Some of the behavioural patterns on which TaxCore© profiles taxpayers include the percentage of working days with no issued invoices, deviations in taxpayers’ financial transactions compared to the average trend of financial transactions in their activities, active working hours of the taxpayer during a period, etc.

AI-Powered Risk Assessment and Tax Audits

Since each type of fraud leaves certain “traces” in the data, TaxCore© offers a 360-degree view of taxpayer behaviour, monitoring their actions through defined patterns. Based on the established risk level for each defined pattern, we obtain a cumulative risk score for the taxpayer as an aggregate of their individual risk levels in behavioral patterns. This part of the system represents a significant business value of the TaxCore© platform, especially concerning support for audit work in tax administrations. Such a view of the taxpayer enables detailed analysis and is particularly useful in the risk analysis sector, aiding in the identification of potential tax evasion and determining priorities for tax controls and actions. This level of automation and analytical power directly contributes to the success of tax administrations in recognising tax risks and acting timely, thus optimising processes and increasing efficiency in conducting tax controls.

Artificial Intelligence for Irregularity Detection

One of the key innovations in TaxCore® is its use of AI algorithms to analyse fiscal data and flag potential cases of tax evasion. These AI models automate the detection of unusual financial transactions, reducing the need for  manual analysis and minimising the risk of human error. Tax Inspectors and analysts can now focus their efforts on high-priority cases, leading to more efficient allocation of resources and a better overall management of tax risks.

Traditional methods often required time-consuming manual work, which left room for oversight. In contrast, TaxCore’s AI-driven system offers automation and improved precision, allowing for quicker and more accurate detection of irregularities and significantly greater accuracy in predictions.

Balancing Artificial Intelligence and Human Expertise

While the AI algorithms in TaxCore© provide deep insights into taxpayer behavior, human judgment still plays a critical role. The system flags potential irregularities, but the final decision on what actions to take rests with tax inspectors. This balance ensures that AI enhances the decision-making process without completely removing the human element, allowing tax authorities to maintain a fair and contextual approach when addressing non-compliance.

Isolation Forest and KMeans for Anomaly Detection

TaxCore© employs a powerful combination of KMeans clustering and Isolation Forest algorithms (enhanced by the use of AI) to detect irregularities. KMeans groups taxpayers based on similarities—such as the number of fiscal invoices issued daily—while Isolation Forest identifies anomalies within these clusters. This dual approach allows for efficient detection of outliers, ensuring that tax authorities can quickly identify taxpayers whose operations deviate significantly from the norm.

For instance, if a taxpayer’s invoice volume suddenly spikes or drops compared to their historical average, the system flags them for further review. This method significantly improves accuracy in detecting fraudulent activity while reducing the number of false positives.

Forecasting Tax Obligations with the Prophet Algorithm

Beyond anomaly detection, TaxCore© also utilises the Prophet algorithm (based on AI) to forecast taxpayer sales volumes and predict when will the system cross certain thresholds for instance on a monthly or annual basis. This is particularly useful for identifying taxpayers who may try to stay just below certain tax brackets to avoid higher liabilities. By predicting sales trends, tax authorities can monitor businesses more effectively and ensure compliance with tax regulations.

Clustering Similar Taxpayer Behaviour with Kohonen Networks

The system uses Kohonen networks to cluster taxpayers based on similarities in their transactions, recognizing and analyzing patterns in operations. This approach generates a two-dimensional map where each point represents a cluster of similar transactions, facilitating visualisation and identification of specific taxpayer behavior patterns. This effectively identifies deviations that may indicate potential irregularities. By utilizing input parameters such as invoice issue date and time, sales amounts, and refunds, the system groups taxpayers based on similarities. For such parameter selection, dominant time periods for invoice issuance are identified, as well as the analysis of the sales structure in relation to refunds. Clusters also aid in recognizing taxpayers showing deviations, such as those with disproportionately high refunds relative to sales. Taxpayers appearing in multiple clusters require closer examination, while those stable within one cluster may be less suspicious, but it remains important to analyse the reasons for their activity during certain periods.

Conclusion

As we strive for digitalization and modernization, leading to an increased use of information technologies, big data becomes a new type of resource in business. The TaxCore© system uses large databases as a key tool for improving business processes and increasing productivity in the public sector, as well as for preventing tax evasion. Through sophisticated algorithms and machine learning, TaxCore© efficiently detects irregularities at the sales points, enabling tax authorities to monitor fiscal transactions in near real-time and quickly identify attempts at tax evasion. Rather than relying on subjective judgment, tax administrators now have access to data-driven insights that help them allocate resources more effectively and focus their efforts where they are needed most.

In-Depth Analysis and Management of Tax Risks

By forming and processing these databases, detailed analysis of collected data on financial transactions and the application of machine learning are enabled. Machine learning methods are ideal for mining large databases and identifying patterns based on historical indicators of tax operations.

More Objective Risk Assessment and More Efficient Tax Controls

Identifying and managing risks, as a significant part of the tax system, is often a subjective process. However, by applying certain methodologies and patterns, it is possible to achieve a higher level of objectivity and precision in decision-making. By using real data from the TaxCore© database and defined scenarios, a taxpayer would be assigned a certain categorization of importance or risk level. This would allow ranking taxpayers according to their risk scores and, with expert experience, achieve a more reliable and objective risk assessment.

Macro and Micro Perspectives: From the Tax System to Individual Taxpayers

With the verification of financial transactions and the collection of data on all taxpayer transactions within the tax system of a country, TaxCore© enables a shift from a macro view, i.e., analysis of the entire financial system of the country, to a micro level, where individual taxpayers representing potential risks are singled out and proposed for further inspection. The capability that the system provides is an insight into the historical behavior of taxpayers, assessing the extent to which their operations align with defined patterns, as well as applying machine learning to identify and isolate taxpayers whose financial activities would require further analysis. The data generated in this way serve as a basis for additional investigations, significantly improving the efficiency and accuracy of tax control.

The Future

TaxCore© has been focused on collecting fiscal data from the field under all conditions, excelling through the application of innovative technologies, such as private blockchain for security elements, as well as enabling systems that generate invoices created using various technologies over a long time span to easily adapt and connect with TaxCore©.

With the development of AI and ML, the focus of the entire development is shifting from acquisition to data analysis, pattern recognition, and rounding out the entire TaxCore© into a tool that will enable inspectors to fight against tax evasion most efficiently, while assisting taxpayers in easily and affordably complying with fiscalization rules and preventing unintentional errors that may occur in business.With the advancement of Large Language Models, for the first time, communication between humans and systems using real natural language has become possible. This has opened the opportunity for TaxCore©, in the next step, to unify raw data about taxpayers, transactions, analysis results derived from machine learning, other public data sources, and expose all of this to individuals who will communicate with TaxCore© in the simplest way – in their native language.

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As digitalization continues to drive change in economies worldwide, PITAA’s initiatives offer a clear path for Pacific tax administrations to stay relevant, innovative, and effective. By focusing on revenue mobilization, capacity development, and technological advancements, the organization provides a forward-looking approach to cooperation across the region. These key priorities are essential for equipping Pacific tax administrations to move with ease through today’s economic realities.

Once more, Data Tech International has had the honor to assist at this yearly event, this year held in Vanuatu. This yearly heads meeting is crucial for all the countries in the Pacific region willing to transform and enhance their economic systems. In this regard, DTI’s CEO, Mr. Goran Todorov, personally joined this yearly event and exchanged ideas and stories of success in the two countries in the region where DTI’s flagship product, TaxCore®, has a firm presence: Fiji and Samoa.  

TaxCore’s know-how offers countries in the region a clear path towards revenue increase by using the latest tendencies in digitalization, and data analytics with powerfully tailored reporting tools capable of handling compliance, modernizing tax systems, adapting to the local conditions, and, at the same time, by adding value to the tax administrations.

Fiscal Innovations: Modernizing Revenue Collection

As economies become increasingly interconnected, the need for innovative approaches to revenue collection has never been more critical. The growing complexity of tax compliance requires tax administrations not only to manage existing systems but also anticipate emerging risks and challenges.

PITAA’s emphasis on modernizing revenue collection highlights the importance of using data analytics, automation, and strategic risk management to address these challenges. By utilizing advanced technologies, tax authorities can more effectively identify tax evasion, predict areas of non-compliance, and develop tailored strategies to improve revenue generation. This is particularly vital for Pacific nations, where resources may be limited, and optimizing tax collection is essential to supporting public services and infrastructure development and maximizing tax collection is crucial for.

But modernization isn’t just about upgrading technology; it also involves taking care of transparency and accountability in an ethical manner. Effective risk management goes beyond identifying potential issues—it requires building trust with the public and engaging taxpayers to encourage voluntary compliance. As countries in the Pacific region like Fiji and Samoa, explore these fiscal frontiers, combining innovation with integrity will be key to achieving sustainable progress across the region.

Data Tech International fully understands these priorities. With a long history of supporting tax authorities across the Pacific, its success stories in Fiji and Samoa showcase how leveraging the latest technology can lead to tangible modernization in tax administration. By tracking non-compliance and utilizing advanced tools, these efforts are helping generate sustainable revenue streams, setting an example for the entire region.

Enhancing Digital Transformation: The Role of Technology in Taxation

Digital technology is playing an increasingly central role in transforming tax systems, and PITAA’s focus on digitalization—described as riding the “Digital Waves”—marks a significant shift in how countries manage taxation across the Pacific. From automation to artificial intelligence, these tools are leading to faster, more accurate, and more accessible tax systems that benefit both tax administrations and citizens.From automation to artificial intelligence, these tools are leading to faster, more accurate, and more accessible tax systems that benefit both tax administrations and citizens.

One of the most striking benefits of this digital transformation is the efficiency it brings. Automated processes reduce the administrative burden for both governments and taxpayers, automation now allows completing tasks in a manner of minutes when those tasks once took weeks. This frees up valuable resources for tax administrations to focus on more pressing matters, such as detecting fraud and ensuring compliance. Moreover, digital systems promote transparency by making data more accessible and traceable, reducing the opportunities for corruption or mismanagement.

The challenge: cybersecurity and the ethical use of AI

However, the rapid adoption of digital tools brings its own set of challenges, particularly in terms of cybersecurity and the ethical use of AI. As tax administrations become increasingly reliant on these technologies, it becomes crucial to protect digital tax systems from cyber threats. PITAA’s recognition of these risks highlights its dedication to building secure, resilient infrastructures that preserve the integrity of Pacific economies. Digital transformation must be paired with measures that address these risks and ensure that no country is left behind as the region advances.The digital transformation must go hand in hand with measures that address these risks and ensure that no country is left behind as the region moves forward. 

TaxCore®, with its broad range of capabilities, adds value to tax administration by offering a wide array of automation techniques that dramatically reduce the time tax authorities’ staff spend analyzing data. It also equips tax inspectors and other essential personnel with the data that truly matters when carrying out their daily tasks. Additionally, TaxCore® always protects sensitive data, keeping it safe from cyber threats, and having it remain securely on the tax authorities’ premises, well-guarded against any major incidents. Data Tech International (DTI) takes cybersecurity very seriously, addressing potential cyber-attacks that could threaten critical infrastructure.

Developing Expertise: strengthening the Pacific Workforce

A highly skilled workforce is the backbone of any successful tax system. Understanding this, PITAA has made capacity building a key pillar of its modernization efforts. As the complexity of taxation grows, a workforce equipped with the right skills and knowledge is essential to keeping pace with global trends and technological advancements.

To do so, tax authorities should not only focus on technical training but also foster a culture of innovation, leadership, and continuous improvement. This holistic model ensures that staff are well-prepared to not only operate modern technologies but also to engage in strategic thinking and problem-solving. As automation takes over routine tasks, the value of human expertise in decision-making, ethics, and long-term planning will only increase.

Collaboration and knowledge-sharing across the Pacific are equally important. While the region’s countries are diverse, they face many similar challenges in modernizing their tax systems. By sharing best practices and working together, tax administrators can enhance the effectiveness and efficiency of their systems. PITAA’s annual meetings provide a critical platform for this cooperation, enabling tax authorities to learn from one another and collectively strengthen tax administration across the Pacific.

Data Tech International (DTI) also contributes significantly to this vital aspect. Its proven expertise in capacity-building, demonstrated through successful implementations in Fiji and Samoa, showcases its strong commitment to adapting to local conditions. DTI focuses on maximizing the effectiveness of training for tax administration staff, modernizing existing processes, enabling new ones, and increasing overall efficiency in order to allocate limited resources effectively in a fast-changing environment.

Actions to Achieve the Vision

To turn PITAA’s vision of a modernized, efficient tax system into reality, several steps must be taken. The path to achieving these goals requires a balanced approach that integrates innovation, collaboration, and a long-term focus on sustainability.

First, investing in technology that truly delivers robust infrastructure remains a top priority. Without the right tools, even the most skilled workforce will be unable to fully implement modern tax systems. Building and maintaining digital platforms, secure databases, and automation tools is essential to laying the foundation for long-term success.

In parallel, maintain the current position that continuous learning and development are essential. While technology plays a key role in modern tax administration, the people who manage these systems are the true drivers of progress. Regular training, opportunities for professional growth, and engagement with new methodologies are crucial to ensuring that digital transformation efforts are both effective and sustainable.Regular training, opportunities for professional growth, and engagement with new methodologies are crucial for ensuring that digital transformation efforts are both effective and sustainable. 

Data Tech International cooperation commitment

In this respect, cooperation between Pacific nations is indispensable. While each country faces unique circumstances, the overarching themes of digitalization, risk management, and capacity development are shared challenges. By pooling resources, expertise, and insights, Pacific nations can create a collective force for regional progress and drive meaningful change in tax administration.

At Data Tech International, we believe that strong, ongoing cooperation is key to ensuring long-term regional progress. This is essential to achieving digital transformation. That’s why TaxCore® represents the most reliable solution for tax authorities—facilitating capacity development, securing revenue collection, and protecting sensitive data from cyber threats, while ensuring that the latest trends and technologies are continuously adopted, updated, and modernized.By pooling resources, expertise, and insights, Pacific nations can create a collective force for regional progress and drive meaningful change in tax administration.

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