25 august 2015 tata infotech ltd. proprietary decision support system & data mining...

April 19, 2023 Tata Infotech Ltd. Proprietary

Decision Support System & Data

Mining Methodologies

FTA ConferenceAtar Singh Tomar

[email protected]

Tata Infotech Ltd. Proprietary 2

Outline

Why a Tax Decision Support System (DSS)?Why a Tax Decision Support System (DSS)?

Tax DSS ArchitectureTax DSS Architecture

Tax DSS Methodology Tax DSS Methodology

Tax Decision Support SystemTax Decision Support System

Business BenefitsBusiness Benefits

Concluding ThoughtsConcluding Thoughts

Q & A SessionQ & A Session


Mainframes OperationalSystems

Online AnalyticalSystems


ACTION

WHY

WHAT

PredictionForecastBusiness

Need

Complexity


Readily access and analyze the tax information

Effectively and accurately identify the area of non-

compliance

Better understand the taxpayers

Formulate better legislative policies

Achieve higher degree of accuracy in revenue forecast

Optimize the operational cost


by Business Typeby Tax Typeby Tax Periodby Locationby its distribution across the various income groups of the taxpayers

Compare the revenue collected and balance due for the past 5 years

Evaluate the effectiveness of audit programs in identifying non-filers and under reporters

Trends in the collected and due amounts in the various Payment Plans at various stages and defaulters

Evaluate the productivity of various departments in handling cases over the years

Evaluate the effectiveness of external data in identifying non-filers by showing the number of such taxpayers

by the payment plan typeby the tax periodby the income groupby the tax type

by tax periodby locationby business type

by tax periodby locationby business type


Designed for real-time data entry and editing

Data maintained is constantly changing

Limited historical data is available for on-line comparisons

Running Decision Support queries degrades the performance

of the Transactional Application

Difficulty in making ad-hoc queries

Complexity in achieving Comparisons, Aggregations,

Rankings, Running totals etc.


Decision Support System is a computer based information system designed to facilitate the decision making process of semi structured tasks


Tax Compliance

Data Mart

Metadata Repository

Tax DataWarehouse

Data Warehouse

Data Extraction,Scrubbing

andTransformation

OLAP toolsEISQuery & ReportingStatistical AnalysisData Mining

LANWANInternet

Meta Cube

Internal Data

Sources

External Data Sources

External Sources

Indv. / Corp.Tax App.

Un-employment Tax App.

WithholdingTax App.

A/RSystem

“A Data Warehouse is a subject-oriented, integrated, time variant and non-volatile

collection of data in support of management’s decision-making process.”

A Data-Mart contains a subset of the dataavailable in an enterprise-wide data warehouse.

Data Mining is Discovering meaningful new correlations, Patterns and trends Using Pattern recognition technologies, Statistical and mathematical techniques

State’s Legacy and Transactional application

IRS’s different tapes IMF IRTF BMF BRTFOther State Agency's Payroll System Transportation System General Services

On-Line Analytical Processing (OLAP)Is a process to assist decision making by using tools to facilitate the analysis

of multi-dimensionally structured business information.

East West North

2Q971Q97

4Q963Q96

2Q96

Income

Withholding

Insurance

Meta Cube

Collected Tax Revenue• North• Withholding• 1Q97

Source Data Validation

Data Scrubbing

Data Migration

Data Transformation

Data Warehouse

Title Page

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X T

T X Y

Y

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Table of Contents

12

39

6

Refresh infoTime Line of Journey

Access Levels

Origin of Data

Transformation Sequence

=

T

C

B

A


Decision Support Analysis

DSS Software Evaluation & Selection

Operational Deployment and Support

Prototype Development

Rev

isio

n &

En

han

cem

ents

Scoping of Prototype

Project Evaluation Criteria

Detailed Design

System Construction

Testing

Demonstration

Evaluation

Functional Orientation

Operational Training

Deployment

Maintenance

Structured Interviews

Decision Analysis

Data Analysis

Technical Analysis

Conceptual DSS Orientation

Plans & Prioritization

Ad

apta

tion


Taxpayer ProfilingTaxpayer Profiling Tax CollectionTax Collection Fraud Detection & Tax Non-complianceFraud Detection & Tax Non-compliance Legislative Change ImpactLegislative Change Impact Revenue ForecastingRevenue Forecasting

These Subject Areas can be viewed w.r.t to various common perspectives Business Type Location (States, City) Taxpayer (Demographic) Tax Type Tax Period (Year, Quarter, Months) Time (Year, Months, Events, Seasons)


Provides comprehensive taxpayer informationProvides comprehensive taxpayer information

Identification of potential fraudulent taxpayersIdentification of potential fraudulent taxpayers

Compliant taxpayer can be relaxed from Compliant taxpayer can be relaxed from cumbersome audit processcumbersome audit process

Provide better taxpayer servicesProvide better taxpayer services


Analyze the trends in tax revenue for revenue enhancementEvaluate uncollected tax revenue

Reallocate resources to value added programs

Enhance A/R management


Maximize the non-compliance discoveries

Analyze trends and patterns of targeted groups of taxpayers Rank potential audit suspects by evaluating

their revenue potentialFocus on collection and compliance efforts

Substantial increase in tax assessments and long term reduction in tax gap


Leverage the accuracy, efficiency,and productivity of non-compliance programs

Provide an alert mechanism to trap non-filers before expiry of the statute limit


Estimate fiscal and administrative impacts of

proposed legislative changes

Support users in formulating tax policy

Analyze the revenue effect of proposed and

enacted legislative changes

Determine the effects of changes in legislation, policies and regulations


Ability to formulate reasonable fiscal policies

Incorporate the historical revenue trends and other governing estimate

variables

Provide the highest degree of accuracy in revenue forecasting

Use of econometric models to improve the accuracy of forecasts


Tangible BenefitsTangible Benefits Improvement in non-compliance will increase tax revenue More cost effective decisions are enabled Better business intelligence is enabled Enhanced taxpayer Services

Intangible BenefitsIntangible Benefits Improved productivity Reduced redundant processing and support Ability to focus on business processes through complete analysis


Tax DSS holds great potential for dramatic business benefitsTax DSS holds great potential for dramatic business benefits

Capitalizes on the potential value of the organization’s informationCapitalizes on the potential value of the organization’s information

Provide decision makers access to consistent, reliable and timely dataProvide decision makers access to consistent, reliable and timely data

Still much more to explore and enhanceStill much more to explore and enhance


Large poolof resources

Expertise in theArea

Superior Solution

Tax DSS Methodology

Understand DSS Technology

Make Things Happen

25 august 2015 tata infotech ltd. proprietary decision support system & data mining...

Documents

data available

tax type

collection of data

tax period

tata infotech

tax information

effectiveness of external

withholding tax