Tax Fraud Prevention using Data Analytics

Fight against Tax Fraud and Tax Evasion, Procedures for mitigating risk presented by Tax Fraud, What it means to you when monitoring Tax Transactions and Tax Compliance to Combat Fraud

Course Description

The Association of Certified Fraud Examiners estimates that fraud costs organizations worldwide $3.7 trillion a year and that a typical company loses five percent of annual revenue due to fraud. Fraud attempts are expected to even increase further in future, making fraud detection highly necessary in most industries.

This course will show how learning tax fraud patterns from historical data can be used to fight fraud. Combining theoretical and practical insights, the use of predictive analytics and descriptive analytics are discussed.

We present methodologies to solve these issues. Moreover, we present techniques from robust statistics and digit analysis to detect unusual observations that are likely to be associated with fraud.

This workshop will give you the best opportunity to be able to transfer their newly acquired knowledge and skills into the workplace.

All the models and scenarios are designed and delivered from a tax perspective ensuring that participants are able to fully relate to the material and thus increasing their understanding and knowledge retention.

The Model outlines how to make the interview simple and is developed through the following phases:

  • Planning and Preparation
  • Introduction – Engage and Explain
  • Initiate a First Account
  • Topic setting – varied and extensive retrieval of information
  • Challenges of inconsistencies
  • Closure

Course Outline

Introduction and motivation

  • Importance of tax fraud detection
  • Definition and Types of fraud
  • Tax Fraud detection challenges
  • Fraud analytics process model

Data preprocessing

  • Types of variables
  • Visual data exploration
  • Missing values
  • Standardizing and transforming data
  • Coarse classification

Social Networks for Fraud Detection

  • social networks and applications
  • is fraud a social phenomenon?
  • social network components
  • visualizing social networks
  • social network metrics
  • community mining
  • social network based inference (network classifiers and collective inference)
  • from unipartite toward bipartite graphs
  • featurizing a bigraph
  • fraud propagation
  • case study

Supervised Methods for Fraud Detection

  • target definition
  • linear regression
  • logistic regression
  • decision trees
  • ensemble methods: bagging, boosting, random forests
  • neural networks
  • dealing with skewed class distributions
  • evaluating fraud detection models

Unsupervised Methods for Fraud Detection

  • unsupervised learning
  • clustering approaches: hierarchical clustering, k-means clustering, self-organizing maps
  • peer group analysis
  • break point analysis

Fraud Analytics: Putting It All to Work

  • quantitative monitoring: backtesting, benchmarking
  • qualitative monitoring: data quality, model design, documentation, corporate governance

Why should you Attend

  • Tax Evasion and Tax Fraud are at the cornerstone of an effective Tax compliance. Tax Fraud Evasion program.
  • Effective monitoring and proper understanding of the topic are required to accurately describe the transactions on a Suspicious Activity from customers/ vendors/ taxable persons.
  • This workshop on Tax Fraud Investigation will address the types of transactions and give you examples of how to drill down further to assess those risks.

Target Audience?

  • Compliance Managers
  • Internal Audit Staff
  • Fraud Investigator
  • Front Line Staff
  • Risk Officers
  • Operational Managers
  • Accounting Professionals
  • Finance Professionals
  • Consultants
  • Finance Executives
  • Tax Professionals/ Officers
  • Compliance Managers
  • Internal Audit Staff
  • Risk Officers
  • Operational Managers

Materials Provided

  • Course material file and hand-outs
  • Exercise sheets and activities

Participants will Get

  • Seminar pack containing the information presented on the day
  • Fun learning activities
  • Certificate of participation

Click here to explore more of our training courses on Taxation/ VAT.