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.

The post Machine Learning for Anomaly Detection in Fiscal Invoices appeared first on Dti.

The year holds special significance as it marks the tenth anniversary of Serbia’s intensified efforts against tax fraud. Minister Mali emphasized that a comprehensive review of the fiscalization measures and methodologies implemented over the past decade is underway. The results illustrate the growing effectiveness of eFiscalization in streamlining tax compliance and ensuring fairer business practices across the country. As Serbia continues to tighten its fiscal policies, the long-term impact of these efforts may serve as a model for other nations seeking to modernize their tax systems and reduce informal economic activities.  

eFiscalization: A Key Weapon in Serbia’s Fight Against the Grey Economy

During the press conference, Minister Mali underscored the importance of eFiscalization, ranking it among the ten most effective government measures to combat the grey economy. The system allows fiscal cash registers to report fiscal invoices in real time, notifying both citizens and the Tax Administration of any discrepancies. This real-time reporting empowers the Tax Administration to conduct more targeted audits, increasing efficiency and transparency in tax collection.

Mali also highlighted broader reforms, including the overhaul of inspection supervision and the adoption of an EU-compliant Law on Public Procurement. These initiatives are designed to modernize tax and financial systems, with a significant milestone on the horizon—the development of a unified tax application. Within two to three years, Serbian citizens will have a centralized platform to manage all their taxes, allowing them to track their obligations and ensure compliance more easily.

eFiscalization Powering Tech-Driven Audits

The annual report from the Serbian Tax Administration (STA) showcases how technology, through eFiscalization, is revolutionizing audits. The STA leverages machine learning and artificial intelligence to identify non-compliant taxpayers, vastly improving its effectiveness in curbing tax evasion. Every day, the system processes over 10 million fiscal invoices, providing invaluable data such as taxpayer identification, transaction type, and QR codes for verification. This wealth of information allows tax inspectors to approach field audits with detailed insights, making their efforts more precise and efficient.

In 2023, Serbian tax inspectors conducted 8,640 field audits. The results were striking: non-compliant taxpayers faced stiff penalties, including temporary bans on operations for failing to issue electronic fiscal invoices. A total of 4,466 businesses, accounting for 43.44% of retail shops, 39.23% of hospitality businesses, and 10.23% of bakeries, faced penalties. For more serious violations, 488 businesses were temporarily shut down for up to 90 days, with 19 facilities closed for an entire year.

Successes and Challenges: Compliance and Risk Mitigation

While eFiscalization has brought significant successes in curbing tax evasion, there remains a pressing challenge in how the tax administration applies penalties. Recent data from the Serbian Tax Administration (STA) indicates that over 60% of inspected businesses were found non-compliant. The response has been swift and strict, with severe penalties including temporary closures of business operations. However, such measures can create a barrier to fostering a more supportive relationship between the STA and businesses that may simply need additional guidance on compliance.

In our opinion, the STA should consider revisiting its penalty statutes to create a more balanced approach. Rather than relying heavily on punitive actions like temporary business closures for misdemeanors, there should be room for tax inspectors to engage in dialogue and provide sensitization around tax obligations. This would encourage greater understanding and voluntary compliance among businesses, particularly those that may struggle with complex regulations.

By shifting focus from strict penalties to a more educational, supportive approach, the STA could foster a climate of cooperation, helping businesses comply without the risk of severe disruptions. Such a strategy would not only benefit taxpayers but also improve the long-term efficiency and fairness of Serbia’s tax system.

The post eFiscalization in Serbia: A Success Story in Combating the Grey Economy appeared first on Dti.

Pour la deuxième année consécutive, le Maroc a organisé sa convention Gitex Africa sous le patronage de Sa Majesté le Roi Mohammed VI, dans la charmante ville de Marrakech. Data Tech International a eu l’honneur d’assister à cette convention, qui s’est avérée être un grand succès.

Qu’est-ce que Gitex et pourquoi est-ce important ?

Gitex signifie, en anglais, « Gulf Information Technology Exhibition » ou Exposition des technologies de l’information du Golfe, et avec Gitex Global, il représente l’évènement technologique et des startups le plus grand et le plus inclusif.

L’Afrique émerge lentement mais sûrement comme un acteur majeur de l’économie numérique mondiale, les experts prévoyant une hausse des investissements technologiques de 115 milliards de dollars à 712 milliards de dollars au cours des 25 prochaines années.

Gitex facilite aux entreprises locales et internationales d’établir une connexion avec les leaders technologiques, gouvernements, startups et investisseurs afin de promouvoir l’innovation et la collaboration. Les sujets vont de la finance numérique à la cybersécurité et à l’avenir de la santé, avec un accent particulier sur l’IA.

L’année dernière, les organisateurs du Gitex ont compté environ 25 000 participants, tandis que les estimations de cette année font état de deux fois plus de participants. Environ 1 500 exposants, entreprises – dont DELL, Huawei, Microsoft, HP, Lenovo, Cisco et Epson – entrepreneurs, investisseurs ou startups à la recherche d’investissements, venant de 130 pays, ont assisté au deuxième salon technologique Gitex Africa. Pour animer les discussions, 53 intervenants distinctifs ont été soigneusement choisis pour présenter.

Leçons apprises au cours de la convention

Trouver des partenaires locaux est crucial: Pour réussir en tant qu’entreprise mondiale, il est fondamental d’établir des liens solides et résilients avec des experts locaux. Les entreprises locales peuvent donner des conseils sur la manière de fournir des services plus efficaces, notamment en ce qui concerne les solutions destinées aux gouvernements. Ils offrent un aperçu inestimable des besoins des administrations fiscales, qui sont uniques pour chaque juridiction dans laquelle nous opérons.

L’utilisation des solutions prêtes à l’emploi est un facteur clé: Lorsque les gouvernements tentent de développer leurs propres solutions internes, ils échouent presque certainement. Alternativement, l’utilisation d’une solution prouvée et testée tel que TaxCore s’est avérée être une option plus sûre. Ayant développé et déployé nos solutions dans de nombreuses juridictions à travers le monde, notre savoir-faire cumulé est un aspect clé de notre succès, nous permettant d’éviter les pièges courants et de nous concentrer sur les besoins locaux spécifiques.

Cette expérience a été extrêmement positive puisque les délégués de DTI ont eu la chance d’interagir et de se connecter avec des entreprises locales et internationales qui partagent le même objectif : fournir aux autorités fiscales les solutions les plus avancées et les plus fiables pour les aider dans leur lutte contre l’économie grise, les écarts de revenus, la détection des fraudes, et l’évasion fiscale.

The post Data Tech International à Gitex Africa 2024 appeared first on Dti.

For the second year in a row, Morocco has organized its Gitex Africa convention under the high patronage of His Majesty King Mohammed VI, in the lovely city of Marrakech. Data Tech International had the honor of attending the convention, which proved to be a big success.

What is Gitex and why is it important?

Gitex stands for Gulf Information Technology Exhibition and, together with Gitex Global, represents the largest and most inclusive tech and startup event.

Africa is slowly but steadily emerging as a major player in the global digital economy, with experts forecasting tech investments to soar from $115 billion to $712 billion in the upcoming 25 years.

Gitex serves to help local and international companies connect with tech leaders, governments, startups, and investors to foster innovation and collaboration. Topics range from digital finance, cybersecurity, and the future of health, with a special focus on AI.

Last year, Gitex’s organizers counted around 25,000 crowd attendees, while this year’s estimations show twice as many attendees. Around 1.500 exhibitors, companies – including DELL, Huawei, Microsoft, HP, Lenovo, Cisco, and Epson – entrepreneurs, investors, or startups looking for investment, coming from 130 countries, attended the second Gitex Africa tech show. To drive the talks, 53 distinctive speakers were carefully chosen to present.

Lessons learned at the convention

Finding local partners is crucial: To be successful as a global company, it is fundamental to build strong, resilient connections with local experts. Local companies can advise how to deliver more efficient services, especially regarding solutions which target governments. They offer invaluable insight into the tax administrations’ needs, which are unique for each jurisdiction in which we operate.

Using off-the-shelf solutions is a key factor: When governments try to develop their own, in-house solutions, historically they almost surely fail. Alternatively, using a tried and tested solution such as TaxCore has proven to be a more successful venture. Having developed and deployed our solutions in numerous jurisdictions around the world, our cumulative know-how is a key aspect of our success, allowing us to avoid common pitfalls and to focus on specific local needs.

This experience has been extremely positive as DTI’s delegates have had the chance to interact and connect with local and international companies that share the same goal – to provide tax authorities with the most advanced and reliable solutions to help them in their fight against the gray economy, revenue gaps, fraud detection, and tax evasion.

The post Data Tech International in Gitex Africa 2024 appeared first on Dti.

Durante su 41 edición, la CATA, o Asociación de Administradores Tributarios de la Commonwealth se reunió para debatir los problemas actuales de los miembros de las administraciones tributarias y de sus redes de socios. 

Esta entidad, fundada en 1978, se dedica a ayudar a sus 47 países miembros mediante conferencias, programas de formación, publicaciones e intercambio de conocimientos con el fin de desarrollar administraciones tributarias efectivas que promuevan el desarrollo sostenible y el buen gobierno.   

Uno de los eventos más importantes que organiza esta entidad de forma regular es la conferencia técnica anual de la CATA, en la que expertos en materia de digitalización, cumplimiento y legislación debaten importantes cuestiones técnicas y legales de especial interés para los miembros de las administraciones tributarias.    

Los principales temas que fueron tratados durante estas sesiones divididas en tres días, que se celebraron esta vez de manera virtual debido a la situación actual con el coronavirus, fueron los siguientes: 

• las reformas fiscales globales, los sistemas tributarios simplificados,  
• el uso de la tecnología para simplificar los sistemas tributarios,  
• la gestión del cumplimiento de las PYME a través de la simplificación tributaria,  
• la cooperación entre agencias de ingresos y la comparativa de la movilización de los ingresos tras el COVID.  

En ella también participaron representantes de la India, del Reino Unido, Mauricio, Canadá, Kenia, Malasia, Uganda, Malta, Nigeria y de Barbados. Todos ellos contribuyeron al evento con sus respectivas presentaciones.  

Data Tech International tuvo el honor de participar de nuevo en este evento anual (la última vez este tuvo lugar en las maravillosas Islas Fiyi, para conocer más acerca de ello pueden visitar nuestro otro artículo al respecto). La intervención de DTI se programó para el segundo día de reunión bajo el título de: los sistemas tributarios simplificados.   

Goran Todorov, director ejecutivo de DTI, fue el orador de DTI y durante su presentación recalcó el uso de la tecnología de blockchain en la tributación como aspecto clave en el futuro para solventar la brecha de recaudación producto del subregistro, de la supresión de ventas electrónicas y de otras prácticas fraudulentas que se usan para engañar a las autoridades fiscales. La solución TaxCore de DTI ya ha adoptado esta tecnología como parte de sus características principales. Los prerrequisitos principales para el uso del blockchain, y que TaxCore hace realidad, son los siguientes: 

• Los registros deben ser digitales – el blockchain es aparentemente inmutable, por lo que es importante asegurarse de que cualquier dato que se transfiera al blockchain sea preciso; 
• Debe existir una identidad digital – para de este modo establecer una conexión fuerte entre la persona y sus operaciones comerciales; 
• Leyes y regulaciones – en el caso de que no existan en el país, deben aceptar la firma electrónica, así como el establecimiento de una infraestructura de clave pública; 
• Alfabetización digital. 

La necesidad de una alfabetización digital y de leyes y regulaciones o decisiones políticas puede suponer un desafío mucho más importante al proceso de digitalización que la tecnología por sí misma.  

En este sentido, hoy se puede implementar la solución TaxCore en cualquier país, a través de distintas fases, lo que ayuda a transformar y preparar el entorno para la próxima revolución tecnológica que incluirá el Blockchain.  

Una vez implementada, la solución TaxCore recoge datos a través de cuatro canales distintos para llevar a cabo auditorías en las facturas, usando para ello la metodología de la mini auditoría del blockchain.  

Entre sus procesos de recogida de datos existe la recogida a distancia que se produce automáticamente y que requiere de conexión a internet; la recogida local facilita la carga de paquetes de auditoría cuando no hay conexión a internet; el escaneado del código QR manda la información cuando se escanea el código QR de la factura (el que utiliza el cliente al comprobar su compra y que transmite dicha información a las autoridades fiscales) y la auditoría del elemento de seguridad, que sirve cuando no existe conexión a internet y que se trata del último recurso en el caso de que exista la necesidad de recoger los datos que nunca abandonaron las instalaciones del comerciante. 

Toda esta información, que siempre se encuentra encriptada, sirve para formar contadores que se acumulan. El resultado de esta metodología de la mini auditoria del blockchain se vuelve todavía más valiosa cuando las instalaciones del contribuyente pierden la conexión a internet y los datos no fluyen, en ese caso si cualquier cliente simplemente escanea el código QR de una factura proporcionada por el vendedor, se mostrará la brecha. Este ejemplo muestra que incluso sin realizar una vista a las instalaciones del contribuyente y de forma sencilla y cómoda desde su proprio escritorio, un agente de la autoridad fiscal puede observar y controlar la brecha tributaria que se produce en la transición entre las modalidades en línea y fuera de línea, y, lo que es más importante, puede determinar la obligación tributaria del contribuyente.  

Además de eso, cualquier tipo de transacción emitida dispone de sus proprios contadores para cada contribuyente, asegurando de este modo que la actividad comercial pueda continuar sin percances.  

Finalmente, el orador abordó la detección del fraude por parte de los clientes mediante el escaneo del código QR de las facturas, lo que constituye otra propuesta para afrontar el problema de la brecha de ingresos y de la recaudación de impuestos. 

La tecnología blockchain se centra, en todos estos asuntos, en el proceso de auditoría el cuál TaxCore ha asumido como una de sus principales filosofías de trabajo y que puede, sin duda alguna, ayudar a las autoridades fiscales a descubrir todos los impuestos no declarados y a conocer mejor a sus contribuyentes. 

The post CATA – Chipre acoge su 41a conferencia técnica appeared first on Dti.

Dans sa 41e édition, la CATA, ou l’Association du patrimoine commun des administrateurs fiscaux, s’est réunie pour débattre des préoccupations actuelles des administrations fiscales membres et des réseaux partenaires. 

La CATA, créée en 1978, se consacre à aider ses 47 pays membres à travers des conférences ou des publications. Avec le but de développer des administrations fiscales efficaces qui favorisent le développement durable et la bonne gouvernance. 

L’un des événements les plus importants que cette organisation organise régulièrement est la conférence technique annuelle de la CATA. Dans la réunion, d’importantes questions politiques et techniques qui préoccupent actuellement les administrations fiscales membres sont débattues par des experts. Les domaines inclus sont la numérisation, la conformité et la législation. 

Sujets abordés au cours de la CATA

Les principaux sujets qui ont été abordés lors de la session de trois jours, cette fois tenue dans un format virtuel en raison de la situation du Covid 19, ont été les suivants : 

• réformes fiscales mondiales, systèmes fiscaux simplifiés, 
• l’utilisation de la technologie pour simplifier les systèmes fiscaux, 
• la gestion de la conformité des PME par la simplification fiscale, 
• coopération entre les agences fiscales et 
• analyse comparative et mobilisation des revenus post-COVID. 

Lors de la CATA, des représentants de l’Inde, du Royaume-Uni, de l’Ile Maurice, du Canada, du Kenya, de la Malaisie, de l’Ouganda, de Malte, du Nigéria et de la Barbade ont contribué à l’événement avec leurs présentations. 

Data Tech International a eu l’honneur de participer une nouvelle fois à cet événement annuel (le dernier s’est tenu dans les merveilleuses îles Fidji, voir notre autre article) et sa participation était prévue pour le deuxième jour de la réunion sous le titre : Systèmes fiscaux simplifiés. 

Présentation de DTI lors de la conférence CATA

Goran Todorov, directeur général de DTI était l’orateur de DTI dans la CATA, et dans sa présentation l’utilisation de la technologie blockchain (technologie de stockage et de transmission d’informations) dans la fiscalité était l’aspect clé de la résolution future de l’écart de revenus résultant de la sous-déclaration, de la suppression des ventes électroniques et d’autres pratiques frauduleuses, utilisées pour tromper les autorités fiscales. La solution TaxCore de DTI a déjà adopté cette méthodologie dans le cadre de ses fonctionnalités principales. Les principales conditions préalables à l’utilisation de Blockchain, que TaxCore concrétise, sont : 

• Les enregistrements doivent être numériques – La blockchain est ostensiblement immuable, il faut  s’assurer que toutes les données existantes transférées sur la blockchain sont exactes ; 
• L’identité numérique doit être en place – pour établir un lien fort entre une personne et ses activités commerciales ; 
• Lois et règlements – au cas où elles n’existent pas dans le pays, doivent avoir l’acceptation de la signature électronique et l’établissement de l’infrastructure à clé publique ; 
• Alphabétisation numérique. 

Le besoin d’alphabétisation numérique, de lois et de réglementations ou de décisions politiques peut être plus difficile pour un processus de numérisation que la technologie elle-même. 

À cet égard, la solution TaxCore peut être déployée aujourd’hui dans n’importe quel pays. Sa mise en œuvre par phases, transforme et prépare systématiquement l’environnement pour la révolution technologique à venir telle que Blockchain.

Processus d’audit mini blockchain

Une fois mis en œuvre, TaxCore collecte des données à partir de quatre canaux différents. Afin d’effectuer des audits sur les factures selon la méthodologie d’audit mini blockchain. 

Parmi ses processus de collecte de données, il y a la collecte à distance, instantanée et nécessite une connexion Internet. D’autre côté, la collection locale pour télécharger les paquets d’audit lorsqu’aucune collection Internet n’est disponible. Aussi, le scan QR sert à envoyer les informations en scannant le code QR de la facture. Ce cas est utilisé par le client pour vérifier son achat et transmettre les informations à l’administration fiscale. Finalement, l’audit ES, sert pour le mode hors ligne et c’est le dernier recours lorsqu’il y a la nécessité de collecter des données qui n’ont jamais quitté les locaux du commerçant. 

Capacité de continuer avec les opérations, même sans connection

Toutes ces données, toujours cryptées, servent à former des compteurs qui s’accumulent. Le résultat de la méthodologie d’audit mini blockchain devient plus précieux lorsque les locaux d’un contribuable sont déconnectés. Si données ne sont pas transmises, dans ce cas, si un client scanne simplement le code QR d’une facture fournie par le vendeur, l’écart sera affiché. Cet exemple montre que même sans visite chez le contribuable, de manière transparente et confortable et depuis son bureau, un agent de l’administration fiscale peut surveiller et contrôler l’écart fiscal qui se produit entre le passage d’intervalles en ligne à des intervalles hors ligne. Ce qui est plus est important, cela déterminera l’assujettissement à l’impôt d’un contribuable en particulier. De plus, chaque type de transaction émise possède ses propres compteurs pour chaque contribuable. Ce qui garantit que le travail du contribuable n’est jamais perturbé de quelque manière que ce soit. 

Enfin, l’orateur a abordé la détection de la fraude par chaque client en scannant le code QR de chaque facture. Ce fait  représente encore une autre proposition pour lutter contre l’écart de revenus et le problème de sa collecte.

The post CATA – Chypre organise sa 41e conférence technique appeared first on Dti.

Depuis le 1er janvier 2020, toutes les entreprises traitant avec le secteur public, doivent transmettre une facture électronique. De même, toutes les entités publiques de l’Union européenne sont tenues d’accepter les factures électroniques qui leur sont adressées. L’objectif principal est l’introduction de l’e-invoicing dont le but est de simplifier et d’empêcher la fraude fiscale. Depuis 2017, le processus d’introduction des obligations d’e-invoicing pour le B2G est terminé. En France, cela se fait via la plateforme Chorus Pro (également pris en charge par PEPPOL). Celui-ci s’agit d’un portail unique pour adresser toutes les entités publiques.

Par ailleurs, la loi de finances 2020 généralise cette exigence au secteur privé. De ce fait, toutes les entreprises devront être en mesure de recevoir une facture électronique au 1er juillet 2024. Une obligation d’émettre les factures par voie électronique ainsi que certaines de leurs données à l’administration fiscale s’imposera également aux entreprises de manière progressive entre 2024 et 2026 pour les ventes B2B.

Ces mesures sont nécessaires à l’instauration :

– de l’e-invoicing obligatoire pour les transactions domestiques entre entreprises ;
– d’une obligation d’e-reporting (transmission des données de facturation et de paiement pour les transactions réalisées avec des personnes physiques ou des opérateurs étrangers).

Cela se traduirait par :

– une obligation de réception des factures électroniques, par toutes les entreprises dès 2023, et
– des obligations d’e-invoicing et d’e-reporting pour les opérations de ventes, applicables dès 2023 pour les grandes entreprises. En 2024 pour les entreprises de taille intermédiaire et en 2025 pour les PME (Entreprise de moins de 500 employés) et TPE (Entreprise de moins de 20 salariés).

La différence notable sera le destinataire « physique » de la facture émise. Alors que cette dernière était transmise directement par le vendeur à l’acheteur, la mise en place de l’e-invoicing obligatoire se traduira par l’apparition d’un intermédiaire dans la chaîne de transmission des factures. En effet, le vendeur devra toujours transmettre sa facture par voie électronique à un particulier certifié plate-forme publique centralisatrice. L’autre solution, c’est de le faire directement à la plate-forme publique centralisatrice qui se chargerait alors, d’une part, de la transmettre au client et, d’autre part, de transmettre les données de facturation (via l’autorité publique centralisatrice en cas de l’intervention d’un opérateur privé) à l’administration fiscale.

Transmission de factures à l’administration fiscale

L’administration a fait évoluer sa position initiale en complétant l’obligation de transmission à l’administration fiscale des factures sous format électronique pour les opérations réalisées en France par des professionnels (« e-invoicing »), d’une obligation de transmission des données de facturation (« e-reporting »), applicable aux opérations de ventes réalisées avec des personnes physiques (« B2C ») et des opérateurs étrangers (ventes B2B, ventes intracommunautaires et exportations). Le modèle de e-invoicing choisi est un modèle tax clearance déjà utilisé dans le monde. La différence c’est que les données ne sont pas transférées directement à l’administration fiscale mais par l’intermédiaire d’agents privés certifiés. L’agent collecte les données des contribuables et les partage ensuite avec l’administration fiscale via le portail d’e-invoicing. L’émetteur et le destinataire de la facture peuvent communiquer sans l’intermédiaire d’agent.

Le portail d’e-invoicing prend en charge trois modes de transfert de comptes utilisables par les contribuables : EDI, API ou service Web. Trois formats de transmission de données UBL 2.1, CII et Factur-X sont utilisés.

Enfin, la contrepartie du vendeur (acheteur professionnel) aurait à transmettre à l’administration fiscale les données relatives au paiement de ces factures (statut, date de paiement). Ces données ne figurent pas sur les factures mais constituent des informations nécessaires. Elles aident à déterminer la date d’exigibilité de la TVA lorsque celle-ci intervient à l’encaissement (prestations de services).

La solution qui offre TaxCore®

Le système de contrôle e-invoicing est une initiative entreprise par de nombreux pays ayant pour but de réduire l’économie grise. Un composant important et nouveau de cette initiative est le système certifié mis en place afin que les contribuables puissent sécuriser électroniquement chaque transaction au moment de la vente.

TaxCore® est une solution logicielle évolutive qui permet la conformité fiscale grâce à l’utilisation de technologies disponibles dans le commerce et d’API publiques. Elle aide dans l’émission des factures fiscales dans un environnement online/offline et dans la collecte des données d’audit. Elle supprime l’évasion fiscale, diminue l’activité de l’économie grise et combat les fraudes.

La solution TaxCore® fonctionne dans n’importe quel type de modèle de clearance. Là où un seul fournisseur de services connecte à la fois le fournisseur et l’acheteur à sa plate-forme pour offrir l’e-invoicing et d’autres services de chaîne d’approvisionnement.

Le système TaxCore® a la capacité de recevoir et de transmettre les factures électroniques émises par le fournisseur. Cela peut se faire en régime online ou offline de la même manière.

Toutes les factures électroniques sont reçues dans une base de données centralisée.

Toutes les factures électroniques sont authentifiées par une méthode d’authentification.

Le système TaxCore® vérifie que toutes les données d’e-invoicing sont correctes grâce à la vérification automatisée de la validité des numéros d’identification fiscale (NIF) ou du numéro d’entreprise ou encore du numéro d’identification national ainsi qu’au calcul de la taxe.

TaxCore® permet aux acheteurs de vérifier que la facture électronique a été reçue et a fait l’objet d’une vérification automatisée.

TaxCore® facilite le développement et permet la génération de rapports et de statistiques.

E-invoices in TaxCore® centralized database are available to both sellers and buyers.

The post Facture électronique – Implications de son application en France appeared first on Dti.

Most central banks are currently showing interest in launching their own inquiries and evaluations. By doing this they explore the possibility of implementing this new form of electronic money. According to the 2022 PWC CBDC Global Index, it is estimated that more than 80% of the central banks are considering the possibility of launching their own digital currency while there are others who have already launched their own versions, among them, the Central Bank of the Bahamas (Sand Dollar), the Eastern Caribbean Central Bank (DCash), the Central Bank of Nigeria (e-Naira), the Bank of Jamaica (JamDex), and the Reserve Bank of India (Digital Rupee).

But why this interest?

On the one hand, CBDCs are a powerful tool for governments to supply citizens and businesses with. They may bring positive contributions concerning the creation of free or low-cost banking accounts, instant payments, or increased transaction efficiency. Here is a list of the potential advantages this kind of technology would entrail:

• Instant transfers and payments: Money transfers and payments could be made in real time. They would, in turn, benefit both parties (both the payer and payment receiver). Helping thus reduce the complexity and transaction fees associated with payments and transfers.
• Free or low-cost bank accounts: The financial institutions of the country would provide any legal resident or citizen with a free or basic low-cost bank account.
• Transaction proof: Digital currencies would represent a transaction proof by themselves, in contrast to traditional-physical cash.
• Increased trust: As CBDCs are issued by the central bank and are used as the national digital payment method, confidence in their use is increased.
• Improves competition between banking entities: Free bank accounts could encourage competition between financial entities to attract deposits. This way opening the possibility of introducing back remunerated sight deposits.
• Public policies transmitter: Central bank-based money could become a source of targeted public policies, guiding consumer behavior to specific purposes.

CBDCs still a controversial topic

However, CBDCs remain a controversial topic, as they also bring about potential risks associated with their implementation, chiefly among them:

• End of banking intermediation: Depositors could abandon the banking system altogether, as digital currency is provided to them, as seen in the point above. Digital money can be bought right from the central bank. As a consequence of that, central banks should regulate the use of CBDCs to counterbalance this new reality.
• Currency’s dollarization: In case there was a foreign digital currency that is stronger than the one present in the local environment, it could get replaced.
• Privacy loss: Governments could oversee financial transactions, thus effectively granting them a powerful tool to control its citizens.
• Limited individual freedom: The adoption of CBDCs, specially in authoritarian states, could lead to limited individual freedom (the possibility of buying flight tickets with digital money could be banned to a particular dissident, for instance). It could lead to the limitation or prohibition of the right to purchase determined products deemed undesirable by the government.

How would TaxCore® fit in the equation?

TaxCore®, as a sophisticated, ever evolving, tool for ensuring tax collection and the monitoring of taxpayers’ fiscal invoice issuance is capable of adapting to this possible reality in an ever-changing, challenging, and complex environment.

In this respect, CBDCs could fit in the picture as they would represent a new payment type that could be added to the list of already existing payment methods for transactions that we currently support, among them:

• Cash
• Card
• Check
• Wire Transfer
• Mobile Money
• Voucher
• Other (CBDC)

Moreover, TaxCore® is also able to support multiple payment methods on the same invoice. Therefore, a CBDC payment type could be shared with others in the same receipt. This would make it possible for the users of the system to choose the kind of payments they need to print on their invoices to supply the customer’s needs.

Not just this, but TaxCore®, as a powerful monitoring tool, would be able to translate the information received from the transactions and their payment methods, into specifically tailored reports by payment type that would offer the Tax Administration with a reliable, efficient, and nearly real time platform for monitoring and surveying not only the other payment methods described in the list, but also CBDCs as a payment type.

In conclusion, TaxCore®, once more, shows that is flexible enough to adapt to a new reality, in this case regarding the appearance of CBDCs as a new payment method, in order to focus on the goal which has always guided its path, and which is a vital part of its main core values: the fight against tax evasion and tax fraud.

The post CBDCs or the dawn of a new digital currency era appeared first on Dti.

Since January 1st, 2020, all companies dealing with the public sector, regardless of their size, must send their invoices in electronic format. Likewise, all public entities in the European Union are required to accept electronic invoices addressed to them. The main objective of introducing e-invoicing is to simplify sending and receiving invoices, as well as prevent tax evasion. The process of introducing e-invoicing obligations for B2G, which started in 2017, has been completed. In France, they do this via the Chorus Pro platform (also supported by PEPPOL); single portal to address all public entities.

In addition, the 2020 finance law generalizes this requirement to the private sector, since all companies must be able to receive invoices in electronic format from July 1, 2024. Governments will impose on companies an obligation to issue electronic invoices for B2B sales, as well as to submit invoice data to the tax authorities, gradually between 2024 and 2026.

These measures are necessary to establish:

– mandatory e-invoicing for domestic transactions between companies;
– an e-reporting obligation (transmission of billing and payment data for transactions carried out with natural persons or foreign operators).

This would translate to:

– an obligation to receive electronic invoices, by all companies from 2023, and
– e-invoicing and e-reporting obligations for sales operations, applicable from 2023 for large companies, from 2024 for medium-sized companies and from 2025 for SMEs (companies with fewer than 500 employees) and VSE (company with less than 20 employees).

The notable difference will be the “physical” receiver of the invoice issued. While before the seller transmitted it directly to the buyer, the implementation of mandatory e-invoicing will result in the appearance of an intermediary in the invoice transmission chain. in fact, the seller will have to always send their invoice electronically to an individual certified as a centralizing public platform or directly to the centralizing public platform. The platform (or certified individual) would then be responsible both for transmitting the invoice to the customer and for transmitting the billing data (via the centralizing public authority in the event of the intervention of a private operator) to the tax administration.

The administration has changed its initial position by supplementing the obligation to transmit invoices in electronic format to the tax authorities for transactions carried out in France by professionals (“e-invoicing”), with an obligation to transmit billing data (“e-reporting”), applicable to sales transactions carried out with natural persons (“B2C”) and foreign operators (B2B sales, intra-Community sales and exports). The e-invoicing model chosen is a tax clearance model already administrations use around the world, with the difference that this model does not directly transfer the data to the tax administration but via certified agents or the centralizing public platform. This intermediary collects taxpayer data and then shares it with the tax administration via the e-invoicing portal. The issuer and the recipient of the invoice can also communicate without the intermediary of the agent.

The e-invoicing portal

The e-invoicing portal supports three modes of account transfer that can be used by taxpayers: EDI, API or Web service. Also, the e-invoicing portal uses three data transmission formats: UBL 2.1, CII and Factur-X.

Finally, the counterparty of the seller (professional buyer) would have to transmit the data relating to the payment of these invoices (status, date of payment) to the tax authorities. This data does not appear on the invoices but constitutes information necessary to determine the due date for VAT when this occurs on collection (provision of services).

Many countries have undertaken the initiative of having the e-invoicing control system with the aim of reducing the gray economy and tax evasion. The certified system is an important and new component of this initiative, put in place so that taxpayers can electronically secure each transaction at the time of sale.

The TaxCore® solution

One such system is TaxCore® – a scalable software solution that enables tax compliance through usage of commercially available technologies and public APIs to issue fiscal invoices in online/offline environment and collect audit data. It suppresses tax evasion, decreases the activity of gray economy and fights frauds.

There are commercial solutions that address all of the above-mentioned requirements. These solutions enable the businesses to exchange and issue invoices protected by digital certificates, as well as the Tax Authorities to have clear, secure and reliant insight into the content of such transactions.

TaxCore® solution works within any type of clearance mechanism model where single service provider connects both the supplier and the buyer to its platform to offer e-invoicing and other supply chain services.

TaxCore® system can receive and transmit e-invoices issued by supplier in online or offline regime in the same manner.

The system receives all e-invoices in a centralized database.

The system authenticates all e-invoices through a secure authentication method.

The TaxCore® system verifies that all e-invoice data are correct through the automated verification of the validity of the Taxpayer Identification Numbers (TIN) or corporate number or national ID number, as well as the tax calculation.

TaxCore® has the option for buyers to verify that the tax administration receives the e-invoice and that it goes through automated verification.

TaxCore® makes it easier to develop and generate reports and statistics.

E-invoices in TaxCore® centralized database are available to both sellers and buyers.

The post The implications of e-invoicing in France appeared first on Dti.

In its 41st edition, CATA, or the Commonwealth Association of Tax Administrators gathered to debate what are the current concerns to member tax administrations and partner networks.

This entity, established in 1978, has the dedication of helping its 47 country members through conferences, training programs, publications and knowledge sharing to develop effective tax administrations that promote sustainable development and good governance.

One of the most important events that this organization regularly holds is the annual CATA Technical Conference, during which subject matter experts debate important policy and technical issues of current concern with member tax administrations in the fields of digitalization, compliance, and legislation.

Discussed topics

The main topics that these members discussed during the three-day session, this time held in a virtual format due to the Covid 19 situation, were the following:

• global tax reforms, simplified tax systems
• the use of technology to simplify tax systems,
• managing SME compliance through tax simplification,
• inter-revenue agency cooperation and
• benchmarking and revenue mobilization post-COVID.

Representatives from India, the United Kingdom, Mauritius, Canada, Kenya, Malaysia, Uganda, Malta, Nigeria, and Barbados contributed to the event with their presentations.

Data Tech International had the honor to participate once again in this annual event (the last one held in the wonderful Fiji Islands, see our other article) and they scheduled their intervention for the second day of the meeting under the title of: Simplified Tax Systems.

Goran Todorov, managing director of DTI, was the speaker from DTI, and in his presentation the utilization of the blockchain technology in taxation was the key aspect to future solving of the revenue gap that comes from underreporting, electronic sales suppression, and other fraudulent malpractices used to deceive the tax authorities. DTI’s TaxCore solution has already embraced this methodology as part of its core features. Main prerequisites for the use of Blockchain, which TaxCore brings to reality are:

• Records need to be digital – Blockchain is ostensibly immutable, so it is important to make sure that any existing data that is transferred onto the blockchain is accurate;
• Digital identity needs to be in place – to establish a strong connection between a person and their business operation;
• Laws and regulations – in case it doesn’t exist in the country, must have acceptance of electronic signature and establishment of Public Key Infrastructure;
• Digital literacy.

The need for digital literacy, laws and regulations, or political decisions might be more challenging for a digitalisation process than the technology itself.

The TaxCore® solution

Regarding this, we can deploy the TaxCore® solution today in any country, implemented in phases, systematically transforming and preparing the environment for the upcoming technology revolution such as Blockchain.

Once implemented, TaxCore® collects data from four different channels to perform audits on the invoices as per mini blockchain audit methodology.

Among its data collection processes there is the remote collection which is instant and needs an internet connection; the local collection allows audit packages upload when there is no internet connection available; the QR scan sends the information by scanning the invoice’s QR code (used by the customer to check their purchase and transmit the information to the TA) and the SE audit, that serves for the offline mode and it is the last resort in case there is the need to collect data that never left the merchant’s premises.

Mini blockchain audit methodology and TaxCore®

All of this data, which is always encrypted, serves to form counters that accumulate. The result of mini blockchain audit methodology becomes most valuable when a taxpayer’s premise goes offline and the data is not coming, in that case if any customer simply scans the QR code of an invoice provided by seller, it will show the gap. This example shows that even without a visit to taxpayer’s premise, in a seamless and comfortable way and from its desk, a tax authority officer can monitor and control the tax gap produced between the transition from online to offline intervals, and what is more important, to determine the tax liability for a particular taxpayer. Moreover, every kind of transaction issued has its own counters for every single taxpayer, ensuring that business is never disturbed in any way.

Finally, the speaker addressed the fraud detection by every customer by scanning each invoice’s QR code, which is yet another proposal to tackle the revenue gap and revenue collection issue.

In all these matters, the blockchain technology centers on the audit process and TaxCore® assumes it as one of its main working philosophies which can definitely help the tax authorities to discover all unreported taxes and know their taxpayers better.

The post 41st CATA Technical Conference hosted by Cyprus appeared first on Dti.