PRESIDENCY OF PRESIDENCY OF REVENUEREVENUE

COMPLIANCECOMPLIANCE MANAGEMENTMANAGEMENT

Ugur DOGAN

Audit and Compliance Department

Turkish Revenue AdministrationTurkish Revenue Administration

Gelir İdaresi BaşkanlığıGelir İdaresi Başkanlığı

SOURCESSOURCES

DATA WAREHOUSEDATA WAREHOUSE DATA WAREHOUSEDATA WAREHOUSE

OPERATIONALOPERATIONALSOURCES SOURCES

(REVENUE ADMINISTRATION)(REVENUE ADMINISTRATION)

OPERATIONALOPERATIONALSOURCES SOURCES

(REVENUE ADMINISTRATION)(REVENUE ADMINISTRATION)

GOVERMENTAL GOVERMENTAL ORGANISATIONSORGANISATIONSGOVERMENTAL GOVERMENTAL

ORGANISATIONSORGANISATIONS

PRIVATE PRIVATE SECTORSECTOR

ORGANISATIONSORGANISATIONS

PRIVATE PRIVATE SECTORSECTOR

ORGANISATIONSORGANISATIONS

e-Declaratione-Declaration

Registration informationRegistration information

CollectionCollection

DebtDebt

Ownership/PartnershipOwnership/Partnership

Audit resultsAudit results

Assessments and paymentsAssessments and payments

CustomsCustoms

Import informationImport information Export informationExport information

Land registry officesLand registry offices

Purchasing housePurchasing house Selling houseSelling house

Motor vehicles informationMotor vehicles information

Central BankCentral Bank

Post OfficePost Office

BanksBanks

Credit card salesCredit card sales Checking/investment accountsChecking/investment accounts Credit transactions:mortgage, loan…Credit transactions:mortgage, loan… Money transfer-payment transactionsMoney transfer-payment transactions Currency purchasing/salesCurrency purchasing/sales ……..

Factroring companiesFactroring companies

Insurance companiesInsurance companies

Leasing companiesLeasing companies

Porfolio management companiesPorfolio management companies

DATA WAREHOUSEDATA WAREHOUSE DATA WAREHOUSEDATA WAREHOUSE

OPERATIONALOPERATIONALSOURCES SOURCES

(REVENUE ADMINISTRATION)(REVENUE ADMINISTRATION)

OPERATIONALOPERATIONALSOURCES SOURCES

(REVENUE ADMINISTRATION)(REVENUE ADMINISTRATION)

GOVERMENTAL GOVERMENTAL ORGANISATIONSORGANISATIONSGOVERMENTAL GOVERMENTAL

ORGANISATIONSORGANISATIONS

PRIVATE PRIVATE SECTORSECTOR

ORGANISATIONSORGANISATIONS

PRIVATE PRIVATE SECTORSECTOR

ORGANISATIONSORGANISATIONS

PRESIDENCY OF PRESIDENCY OF REVENUEREVENUE

Received credit card sales data from banks monthly

Stored in the data warehouse

Checked across the line 45 refering to credit card sales information on VAT return

CROSS-CHECK of CREDIT CARD SALES CROSS-CHECK of CREDIT CARD SALES AND VAT DECLARATIONSAND VAT DECLARATIONS

www. gelirler.gov.tr

Anasayfa

Önceki Sayfa

GÜVENLİ ÇIKIŞ

Kimlik Bilgileri

Tahakkuk

Tahsilat

Borç

414 Tecil

Yurt Dışı Çıkış Yasağı

Gümrük Çıkış Bey.İşlenmeyen Ödemeler

4811 Vergi Barışı

Ekstre Dökümü

YMM Söz.Bilgileri

EFKS Fatura ID Bil.

Belge Basımı

ÖTV İşlemleri

E-Tahsilat

Dilekçeler

Görüş/Öneri

Kullanıcı Şif.Değişt.

Kişisel Şifre Değişt.

Kişisel Bilgi Güncel.

Vergi Türleri

Adı

Soyadı

Vergi Kimlik Numarası

ANA SAYFA

OSMAN

ÇANAKKALE

1112223333

21 Temmuz 2009 Pazartesi 11:55

Pos Bilgileri

HAZİRAN/2008 AYI SATIŞ BİLGİLERİ

Banka Adı Üye İşyeri No. Tutar

Garanti Bankası 15456471564 55.250,00

Vakıflar Bankası 74468545648 15.482,00

Yapı Kredi Bankası 78445415415 36.214,00

İş Bankası 96565005651 34.154,00

TOPLAM 141.100,00

Haziran/2009 Dönemi gün sonu raporu alınmış toplam işlem tutarınız 141.100 TL’dir.

Tutara itirazınız varsa bağlı bulunduğunuz vergi dairenize başvurunuz.

Sales Information

The Bank & Machine ID & Amount of sales

Warning!: “Your total credit card sales amount is 141.100 TL. Visit your tax office for your disapprovals”

INTERNET TAX OFFICE

Credit card sales

Real-TimeReal-Time Automatic Cross-Check MechanismAutomatic Cross-Check Mechanism

approves ignores

The system automatically selects taxpayer as non-compliant

and displays the list on the screen of tax officer

Data Warehouse

Credit cards sales

information from banks

Credit card sales information appears on the screen when a taxpayer fills out e-VAT return

Tax Offices Automation System

OUTCOME:OUTCOME:DECREASING THE NUMBER OF NON-COMPLIANT TAXPAYERS DECREASING THE NUMBER OF NON-COMPLIANT TAXPAYERS

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000more than %5 more than %20 45.LINE=0

Number of Non-Compliant Taxpayer

DISCREPANCIESDISCREPANCIES

MonthsMonths

PRESIDENCY OF PRESIDENCY OF REVENUEREVENUE

THE VAT REFUND RISK MODELTHE VAT REFUND RISK MODEL

PRESIDENCY OF PRESIDENCY OF REVENUEREVENUE

DEVELOPING A VAT RISK MODELDEVELOPING A VAT RISK MODEL

Identifiying fraudulent traders

Receiving required documents via the Internet for VAT refund process

Generating VAT refund check report for tax offices

SCORING and RANKING PROFILES FOR IDENTIFYING SCORING and RANKING PROFILES FOR IDENTIFYING RISKY TAXPAYERSRISKY TAXPAYERS

PaymentPayment

E-returnsE-returns

Balance Balance sheet/Income sheet/Income statementstatement

RegistrationRegistration

Ba-Bs Forms

Audit resultsAudit results

DebtsDebts

Late paymentLate payment

Frequency of Frequency of changing changing addressaddress

High turnoverHigh turnover

Failure to file Failure to file returnsreturns

Round sum Round sum figuresfigures

ANALYSIS ANALYSIS PROCESSPROCESS

Low RiskLow Risk

DataData RulesRules

ProfileProfile

ScoreScore

Audit historyAudit history

High RiskHigh Risk

ANALYSING THE LISTS WITH THE AUTOMATED VAT REFUND SYSTEM

List of List of SuppliersSuppliers

List of List of Custom Custom DeclarationsDeclarationsVAT ReturnVAT Return

Claimant

CENTRAL DATABASE

Application of Refund

Claim

VAT Refund Control Report

Tax Office

List of List of Export Export InvoicesInvoices

PRESIDENCY OF PRESIDENCY OF REVENUEREVENUE

BA – BS ANALYSISBA – BS ANALYSIS

WHAT IS FORM BA-FORM BS ?WHAT IS FORM BA-FORM BS ?

Taxpayers are obliged to submit Form Ba and Form Bs reporting their montly purchases and sales.

Form Ba

Purchases over 2.500 € (5.000 TL) from one taxpayer

Form Bs

Sales over 2.500 € (5.000 TL) to one taxpayer

• Purchase and sale amounts of taxpayers are cross checked based on TIN • Inconsistencies are analyzed

Bs FormTaxpayer A’s sales declaration to B, C, D, ETransaction Sale Amount (TL)

Ba FormTaxpayer B, C, D and E’s purchases declarations from ATransaction Purchase Amount (TL)

Sales to B 40.000 √ B’s purchases from A

40.120

Sales to C 79.860 √ C’s purchases from A

79.960

Sales to D 0 ? D’s purchases from A

53.500

Sales to E 36.000 ? E’s purchases from A

124.000

After other controls, taxpayers A, D and E are selected for audit

LARGE-SCALE CROSS-CHECK MECHANISMLARGE-SCALE CROSS-CHECK MECHANISM

PRESIDENCY OF PRESIDENCY OF REVENUEREVENUE

ANALYSIS of SUPPLIERS and SUB-SUPPLIERSANALYSIS of SUPPLIERS and SUB-SUPPLIERS

((NETWORK ANALYSIS NETWORK ANALYSIS FOR IDENTIFYING FALSE VAT REFUND CLAIMS)FOR IDENTIFYING FALSE VAT REFUND CLAIMS)

Claimant’s Suppliers List

Claimant’s Suppliers List

BBAA CC

BABA BBBB BCBC

1st phase analysis :1st phase analysis : Suppliers list submitted by the claimant (Claimants’ input VAT list)

2nd phase analysis: 2nd phase analysis: Iteration of analysis for second phase suppliers(from B’s form Ba)

BBABBA BBBBBB BBCBBC 3rd phase analysis: 3rd phase analysis: Reiteration of analysis for third phase suppliers(from BB’s form Ba)

PRESIDENCY OF PRESIDENCY OF REVENUEREVENUE

THANK THANK YOU…YOU…

UGUR DOGANUGUR DOGAN

Head of DepartmentHead of DepartmentTurkish Revenue AdministrationTurkish Revenue Administration

udogan@gelirler.gov.trudogan@gelirler.gov.tr