Data Analysis in Tax Audits: Risky Taxpayer Identification

Karakoyun F.

2024 3rd INTERNATIONAL SCIENTIFIC CONFERENCE “BRIDGE 2024”, 22-23 November 2024, PRIZREN, KOSOVA, Prizren, Kosovo, 22 - 23 November 2024, pp.57, (Summary Text)

  • Publication Type: Conference Paper / Summary Text
  • City: Prizren
  • Country: Kosovo
  • Page Numbers: pp.57
  • Dokuz Eylül University Affiliated: Yes

Abstract

Abstract.
Tax crimes, as a common problem of almost all countries, have multicomponent and layered
negative consequences in terms of preventing optimization in tax revenue collection and making
the legal and financial system insecure. To prevent revenue loss related to these crimes, the process
of transition from labor-intensive traditional methods to the use of technology-intensive systems
to identify risky taxpayers is gaining momentum, and the transition from classical auditing to
auditing with a proactive approach is taking place. In these systems, high-risk taxpayers are
identified in risk assessment, analysis and scoring applications with machine learning based
algorithms. Statistical methods, financial analysis techniques, computer-aided audit techniques are
used in the evaluation processes to prevent tax fraud, and applications such as machine learning,
(artificial) neural networks, multilayer algorithms, decision trees are being developed. The aim of
this study is the applications in computer-based tax risk analysis and audit after digital
transformation in tax administrations. When the findings are evaluated; taxpayer behavior may
vary according to the socioeconomic, demographic, and cultural structure of countries, as well as
tax awareness and compliance in the countries. On the other hand, similar models are utilized in
the classification methods of big data and their information generation. The following issues are
emphasized in tax risk analyses: It is important to train experts in this field, to develop software
compatible with local and international norms, to provide the necessary budget, and to develop
strategies in accordance with taxpayer rights in the efforts carried out within the scope of
combating tax evasion.