Tax administrations today handle an unprecedented amount of information flow. As if the complexity of the tax system wasn´t enough, they now find themselves collecting an ever-increasing amount of tax data coming from traditional sources along with digital ones such as digital payments, electronic invoicing and connected devices (e.g. online cash-registers and point-of-sale solutions). At the same time, many administrations are expanding their data collection capabilities even further into new areas, including third parties from online trading, asset leasing, payments to subcontractors and value-added tax (VAT) invoices.
Public and political forces believe this data can contribute to the betterment of society. Tax administrations also believe such data can help them achieve operational excellence. This is indeed possible, if these administrations can convert their collected data into actionable data insights. Therein lies the challenge.