Data and Digital Transformation of an APAC-Based Taxation Authority to Enhance Taxation Revenue

Client

Leading taxation Authority

Challenges

• Detect tax avoidance and expand the tax base
• Promote voluntary compliance
•  Ensure fair and judicious tax administration

LTM Solution

• Processed 170 million active PAN card holder records, 5,000 million tax return transactions per year, 3.5 billion documents, and 50,000+ sources with big data technologies.
• Enhanced user experience for 52,000+ officers, 425,000+ users at reporting entities, and 180+ foreign users with user-friendly portals and mobile app. 
• Increased voluntary compliance through yearly campaigns targeting around 12 million PAN card holders using campaign management techniques.
• Enhanced user experience for 170 million taxpayers with introduction of user-friendly portal and mobile app with more than 4,000 million financial transactions reported yearly.
• Increased ease of compliance by populating pre-filled information in tax returns.
• Automated selection of cases for scrutiny leveraging advanced analytics (collection, classification, correlation, prediction), Semantic Web, and GIS Analytics.
• Created a portal that leveraged advanced analytics and Semantic Web, segmentation, compliance assessment, text analytics, geospatial analytics, data enrichment, and machine learning.
• Optimized scrutiny selection, identification of cases for review, income prediction, confirmation of duplicate PAN using image processing, entity identification in downloaded web pages, issue identification in assessment order, and taxpayer compliance scorecard.
• Analyzed the network by providing 360-degree view of taxpayers with network visualization and graphs.
• Identified high-risk related persons undisclosed related entities, suspicious purchases/payments, and visualized ownership chain.
• Converted non-PAN financial transactions to PAN using various analytical techniques to widen and deepen the taxpayer base.
• Built user-friendly querying application on complex databases
• Created e-verification and faceless assessment cases for taxpayers who are under reporting or evading tax/income.

Business Benefits

• 10% YoY increase in the tax base
• 50% reduction in the turn-around-time
• 53% increase in the number of cases identified under non-filer management system
• 71% reduction in the number of cases identified