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M<br />
1<br />
23<br />
T h e t h i r st f or b i g d a t a d oes n ot st op sh or t<br />
of i n d i r ec t t a x<br />
B e i t f r om f or ei g n or l oc a l t a x p a y er s, t h e b a si s f or a n y suB uc c t essf t h ue l w a y t h a t t h ose a u d i t s a r e c a r r i ed ou t w i l l a l so c h a n g e.<br />
tax collection is hav<strong>in</strong>g a sound set of data. The efficient use of T h e d eb a t e b et w een t a x a u d i t or s a n d t a x p a y er s w i l l b e l ess<br />
m od er n t ec h n ol og y c a n l ow er c ost s of c ol l ec t i on a n d c om p about l i a n c e whether a specific supply should be taxed and more<br />
f or t a x a u t h or i t i es. D a t a a n a l y t i c s c a n a l l ow t h em t o d ev a b el ouop<br />
t w h et h er on e d a t a set i s b et t er t h a n a n ot h er — i n ot h er<br />
sophisticated risk profiles and analyze trends, flag potential audit w or d s, w h et h er t h e t a x a u t h or i t i es’ d a t a , w h i c h sh ow s a c er t a i<br />
i ssu es a n d i d en t i f y h i g h er - r i sk c a ses f or d eep er i n v est i g a t ic on or r — el a t i on or t r en d , i s m or e a c c u r a t e or r ob u st t h a n t h e d a t a<br />
c u t t i n g of f a v en u es f or f r a u d b ef or e t h ey ev en oc c u r . of t h e c om p a n y b ei n g a u d i t ed . I n G er m a n y , f or ex a m p l e, a n<br />
i n c r ea si n g n u m b er of d i sp u t es w i t h t a x a u t h or i t i es c en t er on<br />
A s a c on seq u en c e, m or e a n d m or e t a x a d m i n i st r a t i on s w or l d w i d e<br />
whether the company has gathered sufficient data and whether<br />
are implement<strong>in</strong>g electronic audit<strong>in</strong>g of a bus<strong>in</strong>ess’s f<strong>in</strong>ancial<br />
i t c ou l d h a v e a v oi d ed m i st a k es i n t h e V A T t r ea t m en t of i t s<br />
r ec or d s a n d sy st em s. A n E Y su r v ey of t a x p r of essi on a l s<br />
a c t i v i t i es w i t h m or e en c om p a ssi n g d a t a c ol l ec t i on a n d a n a l y t i c s.<br />
c on d u c t ed i n 20 1 4 i n d i c a t ed t h a t i n 69 of t h e 8 6 c ou n t r i es<br />
In France, new certification requirements for IT account<strong>in</strong>g<br />
su r v ey ed , t h e t a x a u t h or i t i es u se el ec t r on i c d a t a ex t r a c t i on t o<br />
sy st em s a n d c a sh r eg i st er s w i l l t a k e ef f ec t on 1 J a n u a r y 20 1 8 .<br />
p er f or m t a x a u d i t s ( F i g u r e 3) .<br />
F r om t h a t d a t e, b u si n esses t h a t u se I T a c c ou n t i n g sy st em s or<br />
c a sh r eg i st er s t o r ec or d c u st om er s’ p a y m en t s sh ou l d b e i n a<br />
F i g u re 3. D o t ax au t h ori t i es u se elect ron i c d at a ex t ract i on t o p erf orm<br />
t ax au d i t s?<br />
position to provide the French tax authorities with a specific<br />
certificate from an accredited organization, or the publisher of<br />
the software, that verifies the <strong>in</strong>tegrity, security and archiv<strong>in</strong>g of<br />
1<br />
t h e d a t a u n d er sc r u t i n y .<br />
1 6<br />
Yes No Not a p p l i c a b l e<br />
S ou r c e: EY global survey: VAT/GST electronic fil<strong>in</strong>g and data<br />
extraction, E YG M L i m i t ed , 20 1 4 .<br />
69<br />
C on si d er i n g t h ese d ev el op m en t s, i t i s n ot su r p r i si n g t h a t t h e<br />
a m ou n t of d a t a c ol l ec t ed b y t a x a u t h or i t i es c on t i n u ou sl y g r ow s<br />
or e c ou n t r i es r eq u i r e t a x p a y er s t o i ssu e el ec t r on i c i n v oi c es<br />
and/or file the data electronically. Recent examples of this trend<br />
i n c l u d e I n d on esi a a n d K a z a k h st a n .<br />
I n t h e E Y su r v ey , on l y 23 of t h e 8 6 c ou n t r i es ( F i g u r e 4 ) r eq u i r<br />
t a x p a y er s t o su b m i t d a t a a b ou t t r a n sa c t i on s, b u t t h i s n u m b er<br />
i s n ow a l so g r ow i n g . S p a i n , f or ex a m p l e, w i l l st a r t u si n g su c h<br />
a sy st em i n 20 1 7 . I n su c h sy st em s, t a x p a y er s m u st m a i n t a i n<br />
a n d su b m i t V A T b ook s b y el ec t r on i c m ea n s. I n v oi c es i ssu ed a n d<br />
r ec ei v ed f or V A T / G S T p u r p oses a r e t r a n sm i t t ed el ec t r on i c a l l y t o<br />
t h e t a x a u t h or i t i es so t h a t t h ey h a v e a l l t h e i n f or m a t i on r el a t i n<br />
t o t h e op er a t i on s c a r r i ed ou t b y V A T / G S T t a x p a y er s i n r ea l t i m e<br />
10 I n d i rect T ax i n <strong>2016</strong>
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