Presentation Transcript

1. Roving EyePathway to realizing the citizen promise: Government of Chhattisgarh’s Tax Whistle-blower

   Commercial TaxDepartmentChhattisgarh
2. About Commercial Tax Department – Chhattisgarh Chhattisgarh State’s highest revenue generating department Registered Dealers 76,706 No.1 Employees Total Revenue Target for 13-14 1,459 9,000 Cr Circles Offices E-Payments 90%+ 30
3. Background of the initiative ‘Tax Whistle-blower’ Commercial Tax Department (CTD), Chhattisgarh State has been amongst the pioneers in creation of the Tax Revenue Management & Fraud mitigation through the combination of Departmental intelligence and use of innovative technology.
4. Priorities of the e-initiatives Transparency in tax administration To facilitate dealers by providing e-Services Follow up of tax defaulters and evaders Better and effective use of available human resources
5. e-Servicesto the dealer Following e-Services are provided to the dealer :- e – Payment May 2010 e – Return July 2010 e – Registration July 2011 e – Statutory forms Oct 2011 e – Refund June 2012 e –Certificate Oct 2012
6. Strategy adoptedTechnology Intensive Solution Approach
7. Key Business ISSUES In DetailsTax evasion / tax fraud Hiding taxable sales Showing local sale (14% or 5% tax) as inter state sale (2%) or lower rate /tax free sale Inflated Purchases to claim input tax credit Showing interstate sale (2% tax) as stock transfer Not showing reversal of input tax credit on stock transfer. On-paper transactions (Bill Trading) Bogus registration in the name of other persons like agents ,servant etc.
8. Analytical framework for tax administration Commercial Tax Department applied technical innovation using analytics to improve tax administration to achieve its objectives – Sustained revenue stream - Improve tax payment compliance by large dealers on a monthly basis Improved detection of tax evasion using standardized KPIs at the dealer level Detailed analysis of top dealers and commodities contributing to significant revenue for the department
9. DEALER RISK profiling
10. Identified risk parameters Increase in TTO is less than 10% from Previous Year Sale of Tax Free Goods Increase (more than 20%) in Comparison to GTO from Previous Year GTO less than 80% of Total Purchase Stock Transfer-ITR Claim Ratio Lower rate (5%) sale increase more than 20% of TTO Comparison from Previous Year ITR claim increase more than 20% in comparison to Tax Payable GTO and Tax Deposit Difference more than 20% (Decrease in net effective tax rate )
11. RISK Parameter report sample1-Increase in TTO is less than 10% from Previous Year
12. RISK Parameter report sample2-Sale of Tax Free Goods Increase( more than 20%) in Comparison to GTO from Previous Year
13. RISK Parameter report sample 3-GTO less than 80% of Total Purchase
14. RISK Parameter report sample4-Stock Transfer-ITR Claim Ratio
15. RISK Parameter report sample 5-Lower rate (5%) sale increase more than 20% of TTO Comparison from Previous Year
16. RISK Parameter report sample 6-ITR claim increase more than 20% in comparison to Tax Payable
17. RISK Parameter report sample 7-GTO and Tax Deposit Difference more than 20%
18. Dealer profile based on common in 7 risk parameters System Generated selection of cases for detailed assessment on the basis of number of risk parameters
19. Revenue Analysis Analyze and compare different geographical regions in the state and their performance over time.
20. TOP Taxpayers analysis Top taxpayers are analyzed to study the impact on state revenue
21. Commodity analysis Analyze performance of individual commodities to state revenue
22. Tax rate analysis Individual dealers are then analyzed to understand changes in their tax ratios and tax corrective action
23. Monthly taxpayer analysis Monitor individual large taxpayers on a monthly basis to improve the ongoing collections.
24. Detailed report Detailed reports for tax officers to take corrective action and analyze a dealer over time.
25. Revenue forecast Predictability in tax revenue, forecasting enables the department to plan revenue targets
26. Text cloud analysis - commodity Advanced tools like text analysis enable the department to discover commodities that are more prevalent in a particular geography
27. Business relationship analysis Business Relationship diagram helps analyze a particular tax payers business links with other businesses.
28. Detecting tax evasion using interstate purchase verification report Sample Report for difference in Import Purchase and GTO/TTO
29. Detecting tax evasion using interstate purchase verification report Case : Mismatch detection based on Import Purchase and TTO Dealer Name: GANPATI MOTORS Business : Maruti vehicle Dealer Fiscal Year: 2012-13 Import Purchase: INR 86+ Cr Taxable Turnover Shown: INR 61+ Cr VAT Deposited: INR 6.5 Cr Result: Detailed assessment conducted for past 4 years Additional Tax Recovered using Risk Parameters: INR 19 Cr
30. Detecting tax evasion using interstate purchase verification report Sample Report for difference in Import Purchase and GTO/TTO
31. Detecting tax evasion using interstate purchase verification report Case : Mismatch detection based on Import Purchase and TTO Dealer Name: DYNAMIC (C.G.) EQUIPMENT S PVT LTD Dealer : JCB Dealer Fiscal Year: 2011-12 Import Purchase: INR 124+ Cr Taxable Turnover Shown: INR 26+ Cr VAT Deposited: INR 1.26 Cr Result: Tax evasion of Rs. 19 Cr. detected. Rs. 10 cr. has been deposited.
32. Results of the latest Technology based solution
33. Thank You!