Big Data Improves Tax Collection

The predictive model designed with data mining techniques used by the Ministry of Finance in Costa Rica has detected payments to third parties totalling more than $31 million.

Wednesday, May 2, 2018

By cross matching information from the 132 databases available to the Ministry of Finance, the Tax Intelligence Office is trying to predict which companies are more likely to evade tax payments, depending on their historical behavior measured through transactions, tax returns and other data. By linking together all of the information, they are identifying patterns of behavior similar to those of other companies that have evaded taxes in the past.

Nacion.com reports that "...According to Alan Saborío, managing partner of Deloitte and former Director of Taxation, the use of the application of big data tools or massive information analysis has facilitated tax investigations. The specialist noted that now there are electronic invoices and informative statements (which) aid data intelligence work."

An audit carried out by the Comptroller General of the Republic in December 2017 details that "... It was determined that, as positive aspects coming from tax intelligence work in the detection of fiscal risks, a Tax Risks Matrix was prepared in its first stage and a predictive and proactive model of fiscal risks was implemented, the first results of which have been favorable and allowed the calculation of more than ₡18 billion ($31 million) in payments to third parties."

Carlos Vargas, Director of Taxation, confirmed to Nacion.com that "... the risks detected allow the entity to monitor taxpayers and get them to regularize their situation, if necessary."

In its report, the Office of the Comptroller General notes that despite the efforts made, "... continuity needs to be given to these tools for analyzing and detecting tax risks, as the risk matrix has pending stages to be developed for expanding the scope of risk indicators with internal and external information, and in the case of the predictive model, it is important to give continuity to these types of tools to take advantage of the knowledge transferred, given that the contracted service has a deadline of settling up to 16 February 2018."

See report "Audit on the function of Tax Intelligence in the General Directorate of Taxation" by the Office of the Comptroller General of the Republic. (In Spanish)

Do you need more information about your business sector?

Request more information:








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Double Taxation: Agreement between Costa Rica and Mexico

May 2019

Since April 21, the agreement that avoids double taxation and mitigates its effects has been in force, as well as helping to eliminate barriers to trade and prevent tax evasion.

On March 21, Law 9644 was published in La Gaceta, corresponding to the agreement between the Republic of Costa Rica and the United Mexican States, which avoids the double taxation of income and wealth taxes.

Tax Controls for Professionals Tightened

September 2017

In Costa Rica, the Ministry of Finance has announced that it will intensify controls on tax returns submitted by professionals in activities such as medicine, law and accounting, among others.

From a statement issued by the Ministry of Finance:

As part of the control actions carried out by the General Department of Taxation (DGT), this month a campaign was launched to monitor the professional sector which includes sending out more than 25 thousand messages.

Big Data to Combat Tax Evasion

May 2017

In Costa Rica, the Ministry of Finance is using a predictive model designed with data mining techniques to determine the behavioral patterns of companies that might be circumventing tax payments.

Analyzing and crossing checking historical information from multiple databases, the statistical model used by the Directorate General of Taxation attempts to predict which companies are more likely to evade paying taxes depending on their historical behavior measured through transactions, tax returns and other data. By linking all of the information, they identify patterns of behavior similar to those of other companies that have evaded taxes in the past.

Costa Rica Improves Anti Evasion Controls

November 2016

The Directorate General of Taxation has hired an external service that cross matches taxpayer data in public databases to identify suspicious patterns that might suggest misconduct.

The project called Predictive Model started to be implemented by the Ministry of Finance of Costa Rica this year, and aims to analyze the behavior of firms and individuals in order to identify suspicious or unusual patterns in the process of declaration of income and tax payments.

 close (x)

Receive more news about Business Intelligence

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Professional ink refill franchise for sale

Ink and toner refills with latest generation machinery exclusively for the franchisee in Central America, investment opportunity with fast return.
Ink and toner refills with latest generation machinery...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Jul 6)
Brent Crude Oil
43.600
Coffee "C"
102.65
Gold
1,787
Silver
18.330