Tax audit in the digital age Jaco Tempel, Netherlands Tax and Customs Administration 1
General content Digital age and consequences for tax administrations Enhancement of compliance through IT: electronic collecting raw data from third parties and tax payers & smart technology International developments Xenon Point of sales systems IT audits 2
Digital age Many changes in methods and techniques Great implications but no reinventing tax administration principles Compliance and compliance risk management still most important Enhancement of compliance through IT International standards in guidance notes 3
Guidances notes Guidance and specifications for Tax Compliance of Business and accounting software Guidance for the Standard Audit File Tax Guidance for the Standard Audit File Payroll Guidance on Test Procedures for Tax Audit Assurance 4
Enhancement of compliant behaviour and risk management Use of contra information Smart technology f.i. webtools and point of sales systems 5
6 A system for identifying relevant (fiscal) activities on the Internet.
The concept How? Monitoring Identifying Profiling Spidering Output 7
Monitoring Profiling Spidering Identifying Output Monitoring and Profiling Gathering example sites Positive websites Representative for the sites to find Negative websites The rest of the internet Look like positives but are not Automated construction of a advanced search profile based on the example sites Validation of the profile 8
Monitoring Profiling Spidering Identifying Output Spidering Translation from the profile to a query Direct search on the internet Use the profile to evaluate the visited website Intelligent strategy to decide which links should be followed Intelligent strategy to decide which websites should be evaluated Determining scores and ranking the results 9
Monitoring Profiling Spidering Identifying Output Identifying An intelligent strategy to find pages within the site that contain identification details Validation of identification details using open sources on the internet Identification of name, street, house number, postal codes, phone numbers, VAT numbers, bank accounts, CoC number, etcetera. 10
Monitoring Identifying Profiling Spidering Output Output To a Oracle database Accessible with MySQL Delivered in the format that the client wants. 11
Other webtools Others 12
Community International community of Tax and Customs organisations. Netherlands; United Kingdom; Denmark; Canada; Sweden; Belgium; Norway; New kandidates are Poland, Turkey and Chili Annually a usermeeting is organized and daily we are on line in contact via a portal to share knowledge, experiences and projects with one another. 13
Tafeic Extension and reinforcing network of Xenon users Setting up of collaboration between tax and police Extending knowledge Developing methods and tools Creating cooperation between audit teams of both police and tax 14
Point of sales systems Type: JPG 15
sites http://www.oecd.org/ctp/crime/electronic_sales_suppressio n_website_esp.pdf (Spanish) http://www.oecd.org/ctp/crime/electronicsalessuppression.p df (English) http://www.oecd.org/fr/ctp/delits/electronic_sales_suppress ion_website_fr.pdf (French) 16
Point of sales systems Supervision necessary: 15 % of point sales systems employ a skimming module Compliance risk management means cooperation with relevant stakeholders Reliable Point of Sales Systems Quality Mark Foundation 17
IT in tax audits Role of audit file Preparing for tax audits Using computer assisted audit techniques Special powers of the tax auditor Use of expertise of IT auditors 18
IT in tax audits Basic principles: Four eye principle Copy of data file Reasonable period of time 19
20 Thank you for your attention!