The trend of real-time data collection as a tax control mechanism by tax authorities across the world is not much of a surprise now, quite the contrary. One by one and at increasing speed, governments are rolling out local adaptions of Continuous Transaction Controls regimes, more commonly referred to as CTCs. However, new trends are emerging among tax authorities, trends that go beyond the collection of fiscal data in real-time and instead touch upon real-time access to taxpayers’ accounting data and ultimately the use of this data to assess the tax compliance risk.
Real-time data collection presents many opportunities for a tax authority. For example, it can provide a reliable overview of business level transactions in the country, enabling the state to transform financial data into actionable insights. Real-time data can also allow a tax authority to flag individual taxpayer tax risks early so they can be addressed before an audit or dispute arises.
Source: SOVOS
