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Solution: 

Deploy AI-driven detection logic in real time, or near real time, that understands time relationships between transactions to proactively alert staff of likely tax losses.

Detecting fraud and ensuring compliance requires monitoring millions of daily transactions.

For governments with value added taxes (VAT) and electronic collection of invoice transactions, monitoring tax compliance and fraud in real time – or near real time – is complicated by complex detection logic, a huge volume of daily transactions, and error-prone invoice data. Reasoning to detect fraud and non-compliance involves recognizing complex patterns over time periods spanning seconds to months.

Use Case

Industrial AI solutions for VAT fraud prevention and compliance monitor millions of transactions per day in real time – or near real time – and apply AI reasoning logic to identify fraud and non-compliance. 

Use Case Problem:

Prevent VAT losses, increasing revenues to levels that enable stabilizing, or lowering, of VAT rates and ensure fair competition between VAT paying businesses.  

Results:

  • AI temporal reasoning: Apply expert reasoning that examines temporal relationships between events, such as transaction pattern changes over time.

  • Expert rules: Capture fraud and compliance expertise with structured natural language rules that are maintainable by human tax specialists.

  • AI Agents: Check new transactions for errors using AI agents, which also make corrections as appropriate or inform tax collection staff of error cases.

  • Time-stamped semantic database:  Store transactions as time-stamped semantic records, both uncorrected and corrected, to support temporal reasoning, reporting, and audits.

  • Cloud computing: Scale processing power to meet peak transaction flows by spawning new virtual machines in the cloud. This is especially important, for example, in effectively handling retail point-of-sale transactions during the holiday shopping season.

 

Technologies:

Preventing VAT Fraud and Non-Compliance

Home >> Solutions >> Fraud Prevention >> VAT Fraud Use Case

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