Business Intelligence in Taxation

="body">that they accumulate information throughout each
Government Finance Divisions manage the executionindividual taxation transaction lifecycle. Most taxation
of the fiscal policy:types have a yearly lifecycle (i.e. personal income tax).
- management of the taxation and tax audit processVAT involves more frequent transactions. This data
- management of the budget execution process Withinmodeling approach offers advantages, compared to
the taxation framework, each State aims to support itsthe operational systems data models (usually
taxation policy:normalized database schemas):· The model is
- Support the efficient capture and processing of taxquite simple and can be easily understood by business
declarations(non-IT) users · The model's simplicity has also
- Assure the collection of tax revenue according topositive consequences to the performance of queries
plansBased on this infrastructure which would monitor the
- Manage and reduce the risk of Citizentaxation lifecycle of various taxes, the Government
non-compliance: reduce tax evasion levels and fightcan produce information:· on a taxpayer's
financial crimeholistic view (all transactions she / he made) and
- Support the analysis of alternative future tax policiessupport the non-compliance risk scoring and general
and relevant decision making, e.g. consequences of atax audit process · on tax collection time-series
change on State revenueanalysis· on the time it takes between
- Enhance the Citizen experience, during the taxreception of tax declarations & clearance·
compliance process (e.g. offer e-government services).on the tax collection speed· on the Taxpayer
It is proposed that a 'tax monitoring data mart', bedemographics (i.e. average declared income per
designed based on the dimensional model approach. Aprofessional code, geographic distribution of
proposed high-level logical data model is depicted in theincome)· total tax collected by tax office,
picture (check resource below), based on thecompared to tax office attributes
assumption that a critical mass of data (geographicThe model is expandable when the following principle is
& time dimension) in a sufficient data quality exists,applied: the star schema dimensions (time, tax office,
rendering the implementation feasible. The proposedtaxpayer) are conformed allowing the application of
high-level data model depicted in the figure, is a starqueries via conformed dimensions across different
schema with a number of fact tables surrounded by afact tables (drill across queries). This approach is
set of common (or conformed) dimensions. The factknown as Datawarehouse Bus Architecture.
tables are of the 'accumulating snapshot' type, meaning