Currently, in Slovakia, more than 6,000,000 receipts are issued on daily basis. More than 400 000 invoices processed daily. 500 000 active businesses already established and more being established every year.
Market analysis shows that about 5% of receipts issued are manipulated and there is a tax evasion of an estimated EUR 360 000 per day, which means that the state suffers a loss of EUR 10 000 000 per month. We can account for the same percentage of manipulated invoices. It’s hard to tell what the VAT evasion is on the invoicing frauds. But if we take HMRC (GB) estimates, for example, they suspect 1-2 billion loss per year just on carousel frauds and not to mention the other invoice VAT invoicing frauds the sum is just enormous. To prevent such frauds there are experts being hired to tax revenue authorities across the world and they form an analytical unites of experts to find the target and inspect suspicious businesses. This requires extensive amounts of human capital used for analyzing the fraud leading to enforcement. We’re talking days, months sometimes even years’ worth of work aimed at just a handful of businesses. You can’t catch all of the fraudsters with a limited number of inspectors.
Or can you?
You probably read our articles on eInvoice, Wallet, Receipt solutions and if not, click on the pictures below to find out more:
With these solutions, you are collecting data of all transactions in real-time. We can safely say this amount of data can be categorized as Big data. The obvious next step is putting an AI processing unit that can work with all this data to analyze, compare, evaluate, and pinpoint the fraudsters. In real-time. AI telling your inspectors exactly when, where, and what to look for?
Sounds like sci-fi to you? It isn’t.
Our solution Analytics works with centralized business layer data which it uses for automated analysis and risk assessment. The solution provides digital and unique ad hoc analytical reports to our recently introduced solutions. Analytics takes into account detailed reports of all VAT payers’ transactions and compares indicators to evaluate potential tax crime.
It takes into account billing information about the seller/purchaser, the date of the operation, information about the goods, and further monitoring of all taxable transactions.
It even considers the business behaviors of the business in the same segment in order to find patterns of suspicious model situations and distinguish it from the standard behavior of other businesses.
In the case of a soft breach, legal entities can be warned by „soft warning“ as a first step to alert the entrepreneurs through the system without physical inspection. Analytics continuously processes and evaluates data in real-time and provides the basis for targeted tax crime inspections. This allows for significantly greater efficiency in the work of inspectors.