Theresa Kyoto Amosa, the Assistant Chief Executive Officer for Policy Performance & Improvement Division at the Ministry of Customs & Revenue Samoa, is at the heart of this fiscal transformation. Speaking with a clarity and enthusiasm that would make even the most jaded tax lawyer perk up, she paints a picture of a nation undergoing a significant and positive shift. “In a nutshell,” Amosa explains, describing her role, “my role is essentially to provide tax policy advice to government… and we are also the analytical arm of the ministry, so we analyze all the data that’s collected.” It was through this analytical lens that the need for a more vigorous system became glaringly obvious.

The introduction of the Tax Invoice Monitoring System (TIMS) wasn’t exactly met with open arms, as Amosa readily admits. “Yes, there was definitely a lot of resistance,” she recalls. For a country with a significant cash economy and a reliance on manual processes, the idea of embracing technology in everyday business operations presented a considerable hurdle. “It’s very hard for our local people to accept the idea of using technology in their everyday business operations,” she states. This resistance wasn’t limited to taxpayers; even within the ministry, a learning curve existed.

Key Takeaways

1. Data-Driven Problem Identification is Crucial: Samoa’s journey began with a clear understanding of the problem. A 2019 tax gap analysis revealed a significant discrepancy between registered taxpayers and those filing returns, highlighting substantial underreporting. This data-centric approach provided the impetus and justification for implementing a new system.
2. A Committed Technology Partner Makes All the Difference: The collaboration between the Ministry of Customs & Revenue Samoa and Data Tech International (DTI) was a cornerstone of their success. Amosa consistently emphasizes DTI’s proactive attitude, commitment to successful implementation, and willingness to go above and beyond their contractual obligations. Selecting a technology partner truly invested in the country’s success, not just in making a sale, made all the difference.
3. Real-Time Monitoring Fosters Compliance and Increases Revenue: The core functionality of TIMS, its ability to monitor transactions in real-time by directly linking businesses’ sales points to the tax authority, had a significant impact. This transparency changed taxpayer behavior. Knowing their sales were being monitored, businesses became far more willing to report their true earnings. This direct oversight led to a noticeable increase in revenue collection.
4. Addressing Resistance Through Collaboration and Support is Essential: Implementing a new digital system inevitably faces resistance, both from taxpayers accustomed to manual processes and from within the implementing organization itself. Samoa tackled this by working closely with DTI, who provided crucial support in developing training materials and helping the ministry define internal roles and responsibilities.
5. Transparency and Accuracy Build Trust in the Tax System: Ultimately, the success of Samoa’s fiscalization efforts, driven by TIMS, boils down to enhanced transparency and accuracy in the tax system. Thru minimizing human intervention and providing a clear, auditable record of transactions, TIMS reduced opportunities for errors and deliberate underreporting

Driven by Data: The Analysis That Sparked a Fiscal Revolution

However, the Ministry, guided by Amosa’s division, understood the pressing need for change. A 2019 tax gap analysis had revealed a startling discrepancy between registered taxpayers and those actually filing returns. “There was a huge gap, a huge discrepancy,” Amosa emphasizes, highlighting the significant risk of underreporting. The promise of TIMS, with its ability to monitor transactions in real-time, offered a sign of hope in closing this gap.

Samoa fiscalization journey wasn’t without its bumps, but the collaboration with Data Tech International proved to be the cornerstone of their success. Amosa speaks highly of their partners, noting their “just attitude towards implementation” and their commitment to a successful rollout. DTI’s proactive approach, from developing training materials to assisting in defining internal roles, was instrumental. “One thing that I’ve actually picked up from DTI is the commitment that you have to really benefit our internal processes from the use of the tax invoice monitoring system,” she remarks. Amosa highlights that such dedication is rare, especially when compared to their past experiences with other technology vendors.

Proof in Numbers: Samoa Fiscalization Delivers Undeniable Impact

So, what tangible improvements has TIMS brought to Samoa? According to Amosa, the impact on revenue collection has been undeniable. “I can honestly say that the implementation of the tax invoice monitoring system has contributed to the increase in our revenue collection,” she states confidently. Remarkably, this increase was even evident during the height of the COVID-19 pandemic. The reason? A shift in taxpayer behavior. “Once taxpayers were aware that we were actually monitoring their sales, they started declaring their actual sales in their tax returns,” Amosa explains. The direct connection between their daily transactions and the ministry’s oversight fostered a new sense of accountability.

Beyond the impressive numbers, Amosa shares a compelling anecdote that underscores the human impact of TIMS. She recounts the experience of a large tobacco manufacturing company, a significant contributor to excise taxes. Initially facing accreditation complexities due to being part of an international chain, the company found a dedicated partner in DTI. Amosa vividly describes how the DTI team, even across time zones, worked tirelessly with the company’s EFD component developer to devise a solution that ensured full compliance. This collaborative spirit not only resolved a technical hurdle but also fostered a positive relationship with a major taxpayer. Furthermore, the company itself found value in the system, using the data available on the taxpayer admin portal for their own sales analysis. “This is all evidence-based, and they could monitor their sales, and that has really helped them,” Amosa notes.

Moreover, the new evidence based and compliance driven regulation around TIMS has greatly impacted enrichment and cleansing of existing taxpayer’s registry. Without enforcement efforts Samoa has managed to bring taxpayer’s database to accurate state and assisted taxpayers in maintaining clean records.

Samoa Fiscalization Success: A Strong Partnership with DTI

From the Ministry’s perspective, TIMS has proven to be a powerful tool in detecting and addressing non-compliance. Amosa reveals, “I can say for a fact that we’ve had a number of audit cases where we have detected deliberate underreporting by a few of our large companies.” The consequence of this newfound transparency? These companies had to pay the shortfall along with penalties, sending a clear message about the seriousness of tax evasion.

The implementation of TIMS has also advanced a more proactive approach to tax compliance among businesses. Amosa observes a significant change in how taxpayers interact with the tax system. “Tax compliance has definitely improved,” she asserts. “I reiterate the fact that taxpayers actually now make an effort to read our tax laws and comply because just knowing that now the ministry has this tool to monitor them on a daily basis, it actually influenced their behavior as well.” The days of the ministry having to relentlessly pursue non-compliant taxpayers are gradually receding. “Before we actually had to chase down taxpayers because they weren’t filing on time, they weren’t paying on time, and we didn’t have the resources to put together evidence to pursue further actions… that has definitely changed since the implementation of TIMS,” Amosa affirms.

Going Above and Beyond

The bedrock of this success story is undeniably the strong working relationship between the Ministry and Data Tech International. Amosa describes it as “very positive and efficient.” She highlights DTI’s responsiveness and their willingness to go above and beyond. “One thing that I do appreciate is that there have been several occasions where we’ve been requesting for reports that are not part of the standard reports in the back end… and Data Tech International has always had a very positive attitude towards helping us,” she explains.

DTI exemplifies a collaborative spirit, proactively suggesting new ways to enhance Samoa fiscalization processes and boost compliance, a refreshing change from vendors who merely deliver a product and walk away. “I feel that DTI actually is genuinely committed to making sure that Samoa benefits from the system,” Amosa emphasizes.

Samoa Fiscalization: The Power of Automated Data Transmission

When asked what specifically about TIMS, powered by TaxCore, stood out among other digital tax solutions, Amosa points to the direct link it created between a business’s sales points and the Ministry’s back-end office. “This is the first time that Samoa is equipped with a tool that would directly link a business’s point of sale to the back-end office,” she states. This direct connection minimizes the possibility of human error or manipulation of data. “I think that is what really made us believe in how much we could benefit because… the methods that we had used previously still couldn’t provide us with this… direct linkage.” Automatically transmitting sales data delivers a new standard of transparency and reliability that was once out of reach.

On the regulatory front, DTI’s support was equally invaluable. Amosa credits them with providing the necessary information and materials that enabled their legal team to draft the Regulations for TIMS with remarkable speed. “DTI really presented to us in a manner that would help our legal team draft up the regulations really quickly,” she notes, emphasizing the efficiency of the process.

Amosa’s Conclusion: The Power of Partnership and Transparency

Subsequently, Amosa offers valuable advice for other countries considering modernizing their tax systems. The biggest lesson learned from Samoa’s experience? Strong collaboration and choosing a technology partner genuinely invested in the country’s success have proven essential to driving meaningful progress. Furthermore, for Samoa fiscalization, clear communication and proactive engagement with taxpayers are crucial in overcoming initial resistance.

As for the future of TIMS in Samoa, Amosa hints at further expansion and the introduction of new features to continue strengthening tax compliance. Samoa is actively driving its fiscal modernization forward, building on the success of its TIMS implementation and a strong partnership with Data Tech International to shape a more transparent and efficient tax system.

Finally, when asked to summarize the biggest benefit of TIMS in one sentence, Amosa doesn’t hesitate: “The biggest benefit of TIMS is the enhanced transparency and accuracy it brings to our tax system, leading to increased revenue and improved compliance.”

For other tax authorities contemplating a similar leap, Amosa offers this crucial insight: “The most important thing I’d want them to know is the significance of choosing a partner who understands your unique context and is truly committed to working alongside you to achieve your goals, just as Data Tech International has been for Samoa.”

In Samoa, that common sense has already paid dividends. Revenue collection is up, taxpayer disputes are down, and donor partners now view the nation as a proof-of-concept for transparency. “We’re a small country,” Amosa concludes, “but we’ve made a big point: Trust isn’t built on goodwill alone. It’s built on systems that leave no room for doubt.”

The post Samoa Fiscalization Success: Numbers Don’t Lie! 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.

During the opening lines, Ms. Kelerayani Dawai, Chair of the Pacific Island Tax Administrators Association (PITAA) Executive Committee and proxy to the Chief Executive Officer of Fiji Revenue and Customs Services, stressed out the belief that “the Pacific region, with its unique characteristics, will play an increasingly significant role on the global stage, our responsibilities are substantial, but so too are our abilities”, she also added that “combining this with improved cooperation among tax authorities, policymakers, development partners, businesses, and others will enable pooling of expertise, resources, and perspectives leading to the development of innovative strategies that promote sustainable taxation practices, thus contributing to social and economic goals nationally and regionally”.

Topics for the meeting

The PITAA Annual Heads Meeting managed to gather 44 delegates from 13 PITAA member countries, as well as 11 partner organizations. The theme the organization selected for this year was “Unleashing Innovation and Collaboration for a Sustainable Future”, this theme included the following subthemes:

• Tax Regulatory Reforms for a Sustainable Future
• Leveraging Technology and Data for Efficient Tax Administration
• Combatting Illicit Financial Flows and Mobilizing Revenue through Collaboration
• Developing a Sustainable Tax Administration

The selected theme perfectly aligns with PITAA’s mission to encourage taxation institutions to design and adopt strategies to modernize and enhance their efficiency.

In this respect, Data Tech International, who had the honor of being invited to the the event as a partner organization, led by Ivan Pavlovic, our Chief Technology Officer (CTO). He also contributed to this international meeting by taking part in round-table conversations about the best way to suppress illicit tax activities, sharing our expertise about assisting tax administrations in providing the tax administration with powerful monitoring tools, capable of preventing and helping combat damaging fraud activities and proposing tax regulatory reforms to unleash TaxCore’s full potential.

On this subject, Data Tech International, with its presence in countries in the Pacific region such as Fiji and Samoa, actively collaborates and plays a key role in supporting and enabling a sustainable and steady growth in tax revenue for both jurisdictions, together with the implementation of a system that is capable to successfully fight against tax evasion and the proliferation of gray economy practices.

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Nevertheless, even in the best and richest countries of today, there are a lot of taxpayers who try to avoid paying taxes in every possible way. It was a shocking statement when a director of Swedish Tax Authority justified the introduction Swedish Cash Register Act 2010 to European Committee with findings that 75% of total turnover goes under-declared in small cash-based businesses. Certified Cash Register legislation was approved to protect serious business owners within cash trading from unfair competition and increase the legitimacy of the tax system by making it more difficult to withhold tax.

Although Sweden didn’t go across the board and monitored all registered taxpayers but mostly small cash-based businesses, the immediate effect corresponds to an increase in the reported revenues of 5 per cent, an additional half a billion AUD of new tax revenue. 

A Canadian province of Quebec, another developed and wealthy jurisdiction, Revenue Quebec had even more success with their implementation of technology to better serve its citizens. The hospitality sector alone progressively collected an additional 2.6 billion CAD. See The Resto Project video for more details.

Australia’s Tip-Off Program

Australia is by all means one of the most developed economies in the world, however, ATO’s tax collecting, and fiscal systems are not as modern as one would expect. Annually, tax evaders cause the country to lose a significant amount of money, prompting continuous efforts to engage customers in combating this issue. Although a good plan with an honest intention to protect businesses from unfair competition, there is a high chance it doesn’t bring enough results.

Australian consumers can report by sending a tip-off form or calling a number if any of following circumstances occur: 

• A customer receives a discount for cash, known as a “cash deal” or a “cashy,” without a receipt or through mates’ rates.
• A customer sees someone:
  • not ringing up a sale on their till or keeping the till drawer open 
  • having two sets of books
  • not declaring all of their income
  • deleting transactions on the point of sale system
  • failing to lodge returns or keep records
• Or
  • a business owners claiming personal expenses on a business account so they can claim deductions
  • a tax professionals encouraging you to claim incorrect or inflated deductions, or to hide or incorrectly change income that you should be reporting.

More about ATO’s making-a-tip-off

In 2020 alone, the Australian government has received over 60,000 tip-offs, and it reacted to most of them. Although using consumers to monitor taxpayers can help, it is often not the best, nor the fastest solution. The recent adoption of e-invoicing is not entirely addressing this issue as many can still go bellow the radar, without traceability, and continue to thrive in grey economy.

TaxCore® – Technology in Service of Customers and Tax Collection

Every receipt a business issues and prints is also visible to the Tax Authority thanks to this system. Moreover, customers can scan these receipts, as they come with a QR code. This code will show them a digital version of their receipts right on their smartphones. This comes with an option to report a receipt in case anything is wrong with it – whether it is incorrect TAX rate, added items, or inflated prices. This is probably the fastest way to catch uncompliant businesses by using customers’ help.

The program helped to educate customers on the importance of asking for and receiving a receipt. This was exceptionally helpful in countries where asking for a receipt isn’t part of the culture. The mindset quickly changed once customers were awarded for their efforts.

In conclusion

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And although this is very much correct, revolutionizing, digitalizing, and modernizing systems that are based on bureaucracy does come with a small price. A price that some businesses are not willing to pay, mostly out of fear. This sounds reasonable – after all, we are used to complicated systems that are often dysfunctional. So even a bare mentioning of importing something new makes taxpayers and business owners resist in fear.

Nobody enjoys drowning in paperwork and documentation, much less going from bureau to bureau only to collect stamps and signatures that are basically irrelevant to the applicant. And that is exactly what TaxCore is all about – making sure that these practices as far as paper journals and archiving remain in the past, and letting technology take care of the rest.

Being Modern Requires Being Modernized First

Every single business has one aim, and that is catering to its target audience. The point is to always offer more and to make it easier for its customers – whoever and wherever they may be. And customers will constantly demand better because they expect the business they put their trust in to be in touch with the advancements of the world.

So naturally, once a certain country makes a decision to revolutionize its tax collection and fiscalization systems, the people involved expect that all the businesses and vendors follow up. Some may perceive it as challenge and some as advantage.

Once Samoa and Fiji decided to team up with Data Tech International and start using our platform, TaxCore, some changes were due. Businesses now must register all their sales points and vendors must go through the accreditation process for assurance that they are electronic sales suppression (ESS) free. Objective is to determine that they follow the fiscalization requirements imposed by the local Tax Authority. Therefore, businesses become qualified and compliant to work in this new environment.

Resistance is inevitable – a handful of businesses tried to find reasoning as to why they should go through accreditation and why it is necessary. This tends to put immense pressure on both the Local Government and Tax Authority.

It is important to mention that abiding by the law when it comes to taxes and fiscalization is not a choice, it is a civic duty, and business owners are no exception when it comes to it.

Is fining taxpayers the way forward?

In 1^st world countries, this almost never presents a problem. Taxpayers who own businesses are well aware of the consequences if they try to resist the fiscalization laws, governments will fine them and their business will suffer.

These fines and just how strict they are depends on the government – whether they are high and unforgiving or more of an educational tool to teach the taxpayers they must abide. Either way, it sets the rules clear; the Tax Authority and the Government define the law, and the citizens abide.

In developing economies, things sometimes take a different turn. In many cases, tax offices in the developing countries often behave as the middleman between the government and taxpayers. It comes off as if the tax offices in these countries are unaware of the authority they present, much less their duty to the country. But, is there a way to motivate businesses to go through accreditation? Fining taxpayers does the trick in some countries, but perhaps other countries can find a different method.

What Do Taxpayers Get from Accreditation?

The method of fining those who don’t abide by the law appears to be working in strong systems that don’t favor. Many developing economies are still in the process of creating such grounds, so perhaps making taxpayers realize how much they get by transferring to the new fiscalization system could help.

So, what is it exactly that business owners get with the new TaxCore system? Well, the benefits are plentiful:

• They will be protected from unfair competition
• The cost of compliance is minimized, as digital audit trail is on the government’s tab
• Eliminates the need for receipts and invoices in paper format, which saves a lot of money
• Management has better insight into business operations preventing classic employee theft
• Promotion of their business through the CCA (Customer Compliance Award) Program

These are only but a few of the many benefits business owners get the moment they make a transition, in many cases seamlessly, to the new system. They can easily cut all the unnecessary money outcomes and have better control of their staff and operations.

How about Vendors?

We would think most businesses would fulfill government requirements the moment specifications are published, as technical changes are not impossible to make. However, it’s the taxpayers who pay for their time, not the government.

In the ECR/POS/ERP industry there are so much diversity and the price ranges go from low to sky rocketing. Sometimes just a change request from a taxpayer would result in astronomical fees for engagement of developers and testers to rollout updates at all sales points. This has prevented some businesses to modernise as they couldn’t keep up with the expenses.

Fiscalization came as an opportunity for some to force updates. Some vendors did this for free because this request to accredit didn’t come from their customers but from the jurisdiction itself where their product is operating. And we expect this as the only way to retain customer, right?

Ethical behaviour vs maximising profits

Failing to comply and go through the accreditation, specifically in countries that operate with TaxCore, results in being unable to develop a business any further. As a business owner, this means losing customers and losing the market to those who complied in time.

Moreover, governments will fine these businesses, and these fines are high enough to present a problem for any business. And if that doesn’t prove to be enough, a business risks being shut down completely, with a jail sentence for the owner(s).

By embracing the new fiscal system, you allow your business to grow and you’re proving your customers their money’s worth. But what is your vendor is dragging feet or asking you for astronomical figure to cough up for upgrade? Firstly you should look at your support and maintenance contract, is there anything in there that obliges your vendor to comply with legislative (tax) requirements? If yes, then this is the case. If not, perhaps you should consider alternative solution and change the vendor.

The post Fiscalization – TaxCore Is Coming appeared first on Dti.

This is a step many countries have decided to make – Taiwan, South Korea, and now India. So, how exactly does invoice matching work?

Explaining Invoice Matching

Invoice matching is “the process of comparing information on the invoice with supporting documents such as a purchase order, goods receipt, and contract.” The point of invoice matching is to detect any potentially fraudulent or irregular invoices. Once the purchase requisition has been approved within the organization, the purchase order can be generated and then sent to the vendor.

Of course, an invoice deviation can happen sometimes. This is also called invoice exception, and it appears when the data on the invoice doesn’t match the supporting documents. A deviation usually leads to a traditional and thorough investigation which should determine if it was acceptable or if there was an error.

How Does TaxCore Do It?

Invoice matching seems to be an outdated, labor-intensive, cost-inefficient method due to the way it deals with possible deviations. Traditionally auditing any irregularities is a waste of time and workforce in most cases, especially given the advances in technology. But it’s not just any application of technology that works, as the IMF indicates, just bringing in more computers to make processes go faster is not the answer. A new tech-based invoice is needed, and TaxCore is a proven new tech-based invoice system

Countries that implemented TaxCore can testify that their B2B invoices not only match, but they are completely identical. When an audit is needed, buyer or seller only need to confirm that they are using the correct or identical invoice already stored in TaxCore itself. As opposed to traditional labor-intensive or computer-intensive invoice matching, our platform allows for an instant audit because it is based on real-time data collection.

In Samoa and Fiji, TaxCore has fully revolutionized the way B2B transactions work, as well as the regular B2C transactions. To find out more about TaxCore features, get in touch with us here.

The post Invoice Matching – Is It Really the Best B2B Fraud Solution? 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!

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Tax Fraud in the EU

Only in 2017, the member countries of the European Union lost approximately EUR 137.5 billion to tax fraud according to data on the EU’s official website. Unfortunately, this trend continued up to 2019 where not much has changed and the loss is still measured in billions. The issue hides behind the differences in tax collection between the members. For example:

• Luxembourg – 0.7% VAT gap
• Sweden – 1.5 VAT gap
• Cyprus – 0.6% VAT gap

Evidently, tax collection and paying for taxes in these countries does not present an issue. However, the situation in some other EU states is completely the opposite:

• Romania – 35.5% VAT gap
• Greece – 33.6% VAT gap

These results mostly indicate the performance of national tax administrations and whether they require modernization or not.

Using Zappers as a Means of Tax Evasion

Zappers are add-on programs that merchants with ECRs or POS systems often tend to use. The problem with them is that they don’t skim all sales, and they never skim credit card transactions. This allows for a lot of space in tax evasion that tax authorities have no way of detecting.

Disappointingly enough, zappers are mostly used in developed economies – for example, Sweden, Germany, and Spain, just to name a few. In Sweden alone, approximately 70% of the ECRs have Zappers installed. Therefore, Sweden is suffering great amounts of tax loss every year that could help boost the economy even further.

Out of the EUR 137 billion in tax loss in the EU, about EUR 20 billion is lost in the restaurant sector alone. The four countries that lose the most in tax revenue are Germany, France, Italy, and Spain.

Total Tax Revenue losses in the USA

On the other side of the pond, the situation isn’t much better. Compared to most of the Western governments, the USA falls very far behind. In 2018, tax revenue at all levels of the US government was 24% of the overall GDP.

The States are behind most EU countries, such as France, Denmark, Belgium, Czech Republic, Turkey, and Greece. They are also behind some Asian countries, such as Japan and South Korea. Making tax revenue losses in the USA, a big issue.

How Are Countries Fighting Against tax revenue losses?

Given that most developed countries are well aware of these problems, which methods are they exactly using to fight against them? Unfortunately, the methods being used are quite outdated and still rely on traditional audits. However, the governments are slowly realizing that the best way to fight technology is with technology.

TaxCore has helped developing countries such as Fiji and Samoa completely evade issues similar to these. Thanks to the complete digitalization of tax collection, any fraud or evasion is noticed immediately. Once a potential tax fraud is discovered in real-time, the tax authority can immediately send out an inspector to investigate the issue. This further motivates taxpayers to abide by the law and the loss of annual tax revenue remains at its minimum.

To find out how TaxCore can help governments battle tax fraud, feel free to contact us.

The post Tax Revenue Losses – in the USA and in the EU appeared first on Dti.

The biggest benefit of the system, however, is its potential to completely crack down tax evasion in the country. TIMS is expected to increase tax compliance and battle the so-called “hidden economy.”

Most importantly, though, T.I.M.S. allows for fair competition and an atmosphere in which it will favor those who are 100% compliant. It will protect fair businesses from those who find ways to evade taxes and can, therefore, sell their products at significantly lower prices.

Lowering the Costs of Tax Collection and Auditing

The Tax Invoice Monitoring System provides many benefits, one of them a being non-expensive method for tax collection. Additionally, there are a few more methods that are supposed to help in wasting money unnecessarily.

Printing receipts for example. Each receipt will come out with a QR code that a customer can scan by simply using any QR scanner on Android or iOS-based phones. By scanning the code, the customer will receive a clear overview of what they purchased and how much VAT they paid for. This way, the customer will additionally verify every single receipt which will be forwarded to the tax authority.

Although paper-based in the present, digital receipts might be a possibility in the future, depending on how the situation develops. Moreover, T.I.M.S. comes with a CCA (Customer Compliance Award) program.

By scanning their receipts, customers will be able to take part in the lottery where vendors award them by offering different awards. This will indirectly impact the fact Samoans tend to rarely ask for receipts and will hopefully break this habit.

The Prime Minister of Samoa, Tuilaepea Aiono Sailele Malielegaoi also encouraged customers to ask for a receipt. Otherwise, they are merely helping non-compliant businesses break the law.

The Launch of T.I.M.S. in Samoa: Business groups

The implementation process is expected to begin in July this year, and it will be rolled out in phases. Based on several criteria for selection, the first group of businesses come from various industries. Other businesses are expected to join within the next 12 months following the first rollout.

The whole process will be very transparent, and the businesses will be notified in time so to give them enough space to comply.

The launch of T.I.M.S. in Samoa will be another effort of Data Tech International with one more of the Pacific Islands, followed by the success of Fiji, to embrace TaxCore as one standard electronic invoicing platform.

The post The Launch of T.I.M.S. in Samoa appeared first on Dti.

In 1997, its official name was changed from Western Samoa to Samoa. This was the point where a lot of changes were due for this nation, the latest one being a completely new tax collection system.

In July of 2019, the Minister of Revenue in Samoa, Mr. Tialavea Tionisio Hunt, reviled the plan that the country will be rolling out a new tax monitoring system to erode tax evasion. The Minister announced that this new system will be web-based, and it will enable real-time monitoring of businesses and taxpayers.

Samoan Ministry of Customs and Revenue, taking in consideration the successful implementation of our software, TaxCore, in Fiji, has offered the contract to Data Tech International, effective this month, when the implementation of TaxCore should officially begin.

The first order of business after signing the contract is setting up the hardware infrastructure and supporting all the taxpayers in Samoa. Additionally, DTI will provide training and knowledge transfer to the Ministry of Customs and Revenue of Samoa as part of the 5 year deliverable and maintenance agreement.

Data Tech International and its flagship product, TaxCore, strives to fight against the gray economy to ensure its worldwide eradication, among the benefits for the tax authority to bear in mind about the system, it is important to highlight:

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