We are creating some awesome events for you. Kindly bear with us.

Indian government to detect tax evasion using analytics on traditional data and social media information

Indian government to detect tax evasion using analytics on traditional data and social media information

Bloomberg reported that the Indian government will be rolling out a new data analytics platform, called Project Insight, to catch tax evaders. In addition to traditional taxation data, such as IT returns, IT forms, TDS/TCS (tax deducted at source/ tax collected at source) statements, Annual Information Return (of 'high value financial transactions'), it will rely on social media information. The algorithm will match residents’ spending patterns, as evidenced from their social media postings, with their declared income.

In July 2016, the Income Tax Department announced the signing of a contract with L & T Infotech Ltd for implementation of Project Insight. The release stated that the new technical infrastructure would also be leveraged for implementation of Foreign Account Tax Compliance Act Inter-Governmental Agreement (FATCA IGA) and Common Reporting Standard (CRS). A streamlined data exchange mechanism with other Government Departments and exchange partners would be set up.

Project Insight us estimated to have cost round 10 billion rupees or $156 million. It is expected to provide a non–intrusive information-driven approach for improving tax compliance.

The project will be implemented in three phases. The roll out of the second phase is planned by December. Individual spending profiles will be created and inquiries will be more targeted. In the last phase, which will go live around May 2018, predictive analytics will enable the authorities to predict future defaults and flag risks.

India has one of the lowest tax-to-GDP ratio among emerging economies. One of the stated primary objectives of the demonetisation (banning of currency notes in denominations of Rs. 500 or Rs. 1000, accounting for 86% of all currency in circulation) in November last year, was to clamp down on ‘black money’ (under the assumption that it was stored in high denomination notes), which refers to funds earned on the black market, on which income and other taxes have not been paid.

This year, the government made it mandatory to quote the unique 12-digit national ID, Aadhaar  or the Enrolment ID of Aadhaar application form, for filing of income tax returns.  In July 2017, the Goods and Service Tax (GST) regime was introduced, implementing one indirect tax for the whole nation. Among the expected benefits is ease of compliance with a simpler tax regime and easier administration for central and state governments.

The Bloomberg article states that Project Insight will complement Aadhaar and GST, as policy makers try to get more people to pay up.

There are several examples of technology used by some other countries to fight tax evasion. For instance, the UK’s tax department (Her Majesty's Revenue and Customs) developed a data mining computer system to looks for income disparities, often caused by undeclared income (such as buying an expensive car when your reported income wouldn’t support it.). It looks at income, pensions, bank accounts, savings and investments, lifestyle, shopping, business, and social media (if the person becomes the subject of an investigation).

Featured image: Nick YoungsonCC BY-SA 3.0

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

Send this to a friend