S. Korea Uses AI, Big Data Analytics to Detect Tax Evasion

Source: Regulation Asia Editors, Regulation Asia 2020-07-08

A new AI-based big data analytics system will be used by the National Tax Service to detect cases of tax evasion using borrowed-name accounts.

South Korea’s NTS (National Tax Service) has reportedly developed and begun demonstrations of an AI-based big data analytics system which will be used to detect cases of tax evasion using borrowed-name accounts.

Set for a full launch in August, the system is said to be able to detect possible income manipulation through borrowed-name bank accounts by cross-referencing tax invoices, cash receipts and data of relatives and friends.

It will be also used to select individuals who will be subject to tax audits, as well as to help taxpayers improve their financial position through analysis of credit card payments and tax invoices to alert them to possible future cash shortages.

The new system was developed out of a big data centre established by the NTS last July to develop a more effective tax administration system.

The center is already able to identify suspected cases of offshore tax evasion by analysing export bills, overseas investment returns, and foreign currency transactions.

NTS

Tax Evasion

S. Korea Uses AI, Big Data Analytics to Detect Tax Evasion

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