The Vision and the Path Forward

The Vanuatu Sales Monitoring System (VSMS), driven by TaxCore®, embodies a visionary leap forward towards tax compliance. It leverages secure, encrypted invoices transmitted automatically from accredited Electronic Fiscal Devices (EFDs) to DCIR. This infrastructure facilitates real-time synchronization, monitoring, and auditing, significantly boosting transparency and tax compliance.

Strategic Recommendations

Drawing on our global expertise, we’ve proposed targeted recommendations to secure the project’s success:

• Legislative Preparations: Finalizing regulations and ensuring they harmonize with existing legal frameworks.
• Data Quality Initiatives: Launching a taxpayer registry cleanup campaign.
• Risk-based Implementation: Prioritizing implementation in high-revenue areas.
• Compliance Task Force: Establishing a dedicated compliance and audit team within DCIR.
• Public Awareness Campaign: Rolling out a comprehensive, multilingual communication strategy.
• Support for POS Upgrades: Offering technical support for businesses to upgrade their point-of-sale infrastructure.
• Enhanced Regional Support: Establishing regional enrollment centers.
• Accessible Web and Mobile Solutions: Providing free invoicing solutions optimized for local infrastructure.
• Customer Compliance Incentives: Introducing the Customer Compliance Award to encourage consumer participation.

Hon. Johhny Koanapo Rasou, Vanuatu’s Minister of Finance and Goran Todorov, DTI’s CEO

Infrastructure and Legislative Preparedness

The successful implementation depends heavily on digital infrastructure readiness and clear legislative support. With digital signatures and secure recordkeeping backed by TaxCore®, VSMS will meet stringent standards outlined in Vanuatu’s Electronic Transactions Act and Tax Administration Act, enhancing enforceability and compliance.

Taxpayer Compliance and Behavioral Change

Observations from previous monitoring exercises indicate taxpayers respond positively to active oversight. VSMS provides proactive, continuous verification, significantly improving detection and reduction of tax evasion and fraudulent activities.

Final Thoughts

Our project with DCIR involves capacity building and implementing VSMS, powered by TaxCore®. By fostering transparency, securing revenues, and enabling fair market competition, this system positions Vanuatu’s tax administration among the most progressive globally.

We at DTI are committed to this transformative journey, confident in VSMS’s ability to create lasting benefits for the government, businesses, and citizens of Vanuatu for years to come.

The post Transforming Tax Compliance in Vanuatu: A Strategic Leap with VSMS appeared first on Dti.

One of the key advantages of the TaxCore® system is its authentic, accurate, and verified data, ensuring the reliable application of advanced analytical models and AI algorithms. The accuracy of AI results directly depends on the quality of input data, and TaxCore® establishes a strong foundation for deriving trustworthy conclusions and predictions, enabling effective and precise management of fiscal risks. Valid and verified data not only allow for more accurate analysis but also significantly enhance trust in the results generated by AI.

Necessity for Safeguarding Data

Historical data serves as a significant tool for applying AI methods for forecasting or determining risk levels, with reliable analysis only possible with high-quality input data. Without adequate data quality, artificial intelligence algorithms cannot provide reliable results, as their outputs reflect errors in the input data. Moreover, imprecise, incomplete, or inaccurate data generate patterns that are either unusable or incorrect, potentially leading to unfounded conclusions. In such situations, data cleansing becomes a necessary step but comes with certain challenges. Removing incorrect data significantly reduces the dataset on which algorithms are applied, which can result in a non-representative sample not providing the real picture.

TaxCore ensures that all data is accurate and complete, greatly mitigating these issues. The system enables the application of AI algorithms on clean and validated data, generating patterns with genuine analytical and predictive value. Reliable analytics based on such structured data allows for risk identification and informed decision-making.

TaxCore®: Trust, Transparency, and Data-Driven Insights

Transparency is a cornerstone of TaxCore®, strengthening collaboration between Tax Authorities, suppliers, and taxpayers while building trust. The system actively incentivizes public participation in invoice verification, encouraging greater awareness and engagement. Vigorous anti-fraud measures are in place to secure the system’s integrity and reliability. Moreover, TaxCore® is engineered to minimize costs for Tax Authorities, ensuring optimized efficiency and long-term sustainability.

The unification and quality of data within the TaxCore system enable not only detailed analysis of current trends but also reliable future forecasting. Accumulated and validated data serve as the foundation for applying methods such as data mining, which, combined with AI algorithms, empower tax authorities to identify risks, detect anomalies, and enhance decision-making at a strategic level. The accuracy and precision of input data are crucial for the successful application of these methods, and TaxCore® ensures precisely this level of reliability, contributing to trustworthy and actionable outcomes.

Unifying Tax Data for Accuracy, Insights, and Fraud Prevention with TaxCore

One of TaxCore’s advantages lies in consolidating all tax data for all taxpayers within a country’s tax system. Thus, the process flow is clear, it delivers insights into every commercial transaction in a way that facilitates risk analysis and remote audits. The system’s strength is not only in data consolidation but also in ensuring their accuracy and correctness. TaxCore® guarantees that all data related to transactions, taxpayers, and the locations from which invoices originate are valid and complete, forming a significant and valuable database. From this database, users can generate meaningful and significant insights/reports, as well as future predictions regarding potential tax fraud. Through utilizing advanced technologies such as encryption, digital certificates, and strict input data controls, TaxCore® warrants the integrity of the information essential for making precise and reliable decisions.

The system assures data accuracy and consistency, preventing the issuance of imprecise or incomplete invoices, and making certain that it does not lose any data. In this way, TaxCore® generates high-quality and usable data, making the application of AI models more profound since algorithms work with accurate and consistent data. This results in precise conclusions and predictions. Based on these results, the system can make well-founded decisions, contributing to more efficient fiscal control and reducing the risk of fraud.

The post TaxCore® Delivers Accurate Artificial Intelligence Results driven by data appeared first on Dti.

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.

The post TaxCore©: Insights from the ATAF General Assembly Meeting 2024 appeared first on Dti.

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.

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.

The post PITAA Annual Heads Meeting 2024: TaxCore Response appeared first on Dti.

Retail businesses are completely revamping their stores and their entire business model, by making their environment safe zones. This completely changed the shopping experience, but it is mandatory and precautionary.

So, how do supermarkets achieve minimum contact within their premises exactly? Well, different retailers went for a different approach:

• Minimizing the communication between the cashier and the customer
• Completely eliminating the need for a cashier and encouraging consumers to use self-checkouts
• Additionally, minimizing the communication between customers and self-checkout attendants as much as possible
• Supporting physical distancing with proper signs put in the store and according to the law of the local government

While some retailers have taken the more expensive path of investing into the grab-and-go and delivery technologies, some are going for a less radical approach.

Others, however, have decided to give it a go with what they already own, only adjust it to the current epidemic. The good thing is that these changes are minor and somewhat easy to apply, therefore, the business model is not suffering too much.

As an example, here is how NCR is helping retailers who use their products deal with the new set of epidemic rules:

1. Touching the self-checkout screen as little as possible.

A self-checkout will now start working the moment a customer scans the first item, this eliminates the need to touch the screen. The same model is used when it comes to paying – the customer can simply insert the money into the bill slot without having to touch the “pay” button.

Similarly to this, the self-checkout will process an electronic payment the same moment a customer enters their credit or debit card. This goes without having to touch the “credit card payment” on the screen.

2. Advising consumers to use e-wallet whenever possible. Using e-wallet technologies eliminates the need to touch the screen. Sometimes, retailers develop their own e-wallet services which help speed up the process. However, more often, retailers will use the already established and safe services such as ApplePay or GooglePay.
3. Recommending self-checkout attendants to touch the screen as little as possible. For this cause, NCR developed an attendant program which minimises the need for an attendant interference in the self-checkout lane.

However, none of these options makes real touchless shopping, a reality.

How TaxCore helps?

Unfortunately, countries that have partnered with DTI for implementation of TaxCore also took a hit from the Covid-19 epidemic. As a result, shop owners are finding themselves in need of a touchless shopping solution. Luckily, TaxCore as a platform supports it.

Next to retailers in Samoa and Fiji advising that customers use cards whenever they can to eliminate the need for cash, according to legislation around e-invoicing the need for paper receipts is eliminated. Considering that cash and paper fiscal receipts have been proven to be one of the largest ways of the virus transition, it is important to find an alternative.

With TaxCore, receipts come with the capacity of being fully digital and instantly verifiable. If a retailer invests in the so-called “customer-facing screens,” they will still abide by the law while protecting the health of the local population. This screen can show the QR code which hides the Government URL to the digital version of the receipt in it. Once the customer scans this QR code, the receipt will be shown on their phone.

As for B2B transactions, the invoice can be forwarded via e-mail, also eliminating the need for physical, paper invoices, making touchless shopping, possible.

By using digital versions of fiscal receipts, combined with motivating your customers to pay using cards or e-wallets, you are greatly eliminating the chance for infection when it comes to both your employees and consumers.

It is vital to mention that many retailers worldwide have secured their self-checkouts and cash registers with an anti-bacterial coating. This coating eliminates most bacteria and must be changed only once every 6 months. It is an advisable option to further minimize the effect of the pandemic. Stay safe!

The post Touchless Shopping – Adapting to the New Normal appeared first on Dti.

Many are wondering, what now?

We Need a Quick Fix

Most governments are genuinely worried about how businesses will handle this situation. However, not many countries can afford to help their private sectors, at least for now. On top of that, the health care systems are crumbling under the pressure of the new virus and the number of infected people across the globe. This automatically means that most governments will prioritize helping hospitals instead of corporations.

For companies in many countries, this means that they will have to rely on themselves; or to be more precise, on the money they managed to save up over the years. The situation the world is currently facing came out of the blue, and as such, nobody was prepared for it. Now, what are the plans corporations are coming up with, and does it by any chance include taking advantage of the crisis?

Who Is Protecting the Buyers?

Due to the pandemic, countries don’t have the time nor resources to monitor their taxpayers properly, which automatically means that buyers are quite unprotected. Has what we feared the most started to happen?

In times like these, the population rests on the idea that producers of general goods and medical supplies will keep their prices intact, competing with each other and creating the best price for consumers. Unfortunately, the percentage of those who are taking advantage of the epidemics is rising.

According to this NY Times article, many pharmacies in the USA alone have raised the prices of their products within a day, making them twice, if not three times more expensive than only 24 hours before. A lot of consumers have started complaining that some supermarkets have started doing the same thing. This is where a country’s tax system comes in to play, and it might be the right time for every government to assess the functionality of its tax collection system. This system serves as the forefront in protecting both the general population and the economy of a country.

So, how modern are these systems? Are they digital yet? And can they actually help their governments the way they were intended to? The sad truth is that in most countries, they’re not. They are somehow still stuck in the 20^th century, and this might be the right time to consider a change.

TaxCore Offers the Perfect Solution

As a platform, TaxCore offers the most modern tax collecting system that ensures transparency. Moreover, it has demonstrated to be the best tool to fight against TAX evasion and VAT fraud in the countries that implemented it. Our platform allows for tax offices to have an insight into every single receipt going through a system, no matter whether it comes from a supermarket, pharmacy, gas station or a restaurant.

And while some governments are now faced with a problem of controlling the prices of medical supplies, the countries which implemented TaxCore know exactly whom to keep their eye on.

In a recent development, the president of Russia, Vladimir Putin, was asked what to do with drugstores that raised the prices of face masks, and his answer was short and to the point – revoke their licenses. Although quite an effective solution, having a good tax system could easier help identify businesses that are breaking the local laws better, and separate bad apples from good apples.

How Do We Protect Consumers’ Rights?

All over the world, people have started panic-buying the necessities, medicine included. In the Republic of Fiji, as of March 19th when the state of emergency has been declared by the Prime Minister, TaxCore has registered a major increase in prices of face masks, antibiotics, and painkillers.

A lot of pharmacies have started selling face masks for prices of up to 2 or 3 times higher. Checking our TaxCore database, we easily confirmed that the difference in prices of these products from January up to today was over 15%.

Having a clear insight in these practices, the FRCS (Fiji Revenue and Customs Service) can easily put an end to these. All the proof they might need is already in the system, so they can easily penalize any business taking advantage of the present situation.

Once the epidemic comes to an end, one thing remains for sure – many governments will have to make a significant change in the way they govern local economic activities. And the change must come from modernizing taxation in the first place. To see how TaxCore can help you in times of crisis, feel free to get in touch through our contact us page.

The post Covid-19: What About the Consumers? appeared first on Dti.

To put it simply, some states control their taxpayers much more, leading to a drastically lower percentage of tax evasion. However, could this be the sole reason why the EU lost 11.2% of the total VAT revenue last year? And is the European Union the only one facing this problem?

Can Technology in Taxation Help?

Many believe that current tax collection laws aren’t suitable for the 21st century anymore, deeming them completely outdated. The problem mostly hides behind the fact that governments and their authorities are simply not present enough; which allows for intentional misinterpretation of tax laws.

However, governments are starting to step in by using technology as one of the main assistants to help them in the process of modernization. Moreover, they are changing their stance as to why some taxpayers avoid their legal obligations – could it be that the whole process is tiresome and overcomplicated for an average Joe?

By using technology, tax authorities are able to establish a more transparent system, where avoiding paying taxes becomes very difficult. Additionally, this very technology can help taxpayers comply with local laws much easier, and it opens a window of opportunities on how to make the whole process faster. Most importantly, tax authorities worldwide can now digitalize the list of their taxpayers which they can further share with any jurisdiction necessary.

Some Countries Are Already Adapting

A handful of countries have already seen the potential in digitalizing their tax and fiscal systems. It was companies like Data Tech International (DTI) that helped these countries digitalize and easily track every single fiscal receipt via a certain system as a result. In the case of DTI, we developed a platform called TaxCore to allow tax authorities track any possible illegal activities or tax evasion performed by taxpayers.

Overall, it is important that the government implementing a new system addresses the problem, comes up with a definite solution, and informs the population about it. It should also come up with very good arguments as to why the new digital system is good and works both ways. After all, society needs to benefit from these changes as much as the government.

The Future of Technology in Taxation

It is only a matter of time before all the countries start taking advantage of everything technology can do for them. The fiscal systems most of the governments still uphold to are out of touch with modern times.

Unfortunately, most jurisdictions believe that the whole process of abandoning an old but functional system for a new one is long and wearisome. This is the main reason why a system that was supposed to be abandoned 20 years ago is still in use.

Fortunately, DTI is already proving to many that this transit from old to new isn’t complicated nor lengthy; instead, it can be very fast, efficient, and beneficial.

The post Technology in Taxation – Washing off the Grey Economy appeared first on Dti.

Therefore, in 2017, DTI was invited to help FRCS come up with a new system that ensures easier and accurate tax collection. By offering the best solution with our platform, TaxCore, the government of Fiji made a decision to contract DTI to help them in the upcoming transition to a new system called VAT Monitoring System (VMS).

What makes TaxCore incredibly useful is the fact it offers a complete insight into every single receipt that goes through the system, may it be from a supermarket, wholesaler, doctor or a lawyer’s office. Therefore, in the present, the tax officers in Fiji can easily detect any irregularities with VAT, STT, EL or other levies throughout the country.

With VMS, Fiji probably has one of the most modern systems in the world which is fully digitalised e-invoicing system. However, given the challenging telecom infrastructure which often causes connection disturbances, DTI was faced with main obstacle: how to make e-invoice immediately verifiable regardless if Internet on premise is up or down.

We had to devise a system that would allow collecting data from a POS (Point of Sale) device even when the connection breaks. This data remains secured thanks to a smart card connected to the POS until the connection restores, and then it is forwarded to the tax office.

DTI’s team of programmers was ready to put a lot of time and effort into finding proper inventions to work around all the possible obstacles. It is thanks to their hard work we managed to successfully implement TaxCore and help the government of Fiji battle tax fraud efficiently.

The post The Cooperation Between DTI and the Government of Fiji appeared first on Dti.