Today I stumbled upon an article I read a couple of months ago on the Dutch Tax Administration and their efforts to fully utilize Big Data. The first time I read it, their thoughts on using business analytics was what stood out the most for me. This time however it was the slogan of the General Director of Dutch Tax Administration, Hans Blokpoel.
The sentence was short, but captured in those few words, what is worth a book full of wisdom. His slogan states:
“To give each tax payer the treatment he deserves.”
Isn’t that exactly what a tax administration is all about? A repressive treatment for those who are deliberately non-compliant, an instructive treatment for those who are unintentionally mistaken and a service oriented treatment for those who comply. Few will disagree. If the tax administration functions effectively, society as a whole will be more tax compliant, resulting in businesses and individuals contributing their fair share to society.
But what if tax payers are no longer in the country? Traditionally that would make it very hard for the Tax Administration. Cross-border tax evasion leads to countries losing millions. Financial resources that could have been used for some of the core aspects of our societies, such as education and health care.
To avoid cross-border tax evasion, countries are agreeing more and more on exchanging information. One thing is clear, where two countries share information, both gain. However the introduction of data exchange is something that brings certain challenges for the national tax administrations. The most efficient way of exchanging information is by heavily supporting the process with IT.
The tax administration of Curacao is currently implementing a data exchange solution in order for financial institutions to comply with the FATCA-agreement signed between Curacao and the United States (IRS). The knowledge gained from extensive collaboration with the Dutch Tax Administration resulted in a solution that covers the highest standards. With this solution the Curacao tax administration will be able to monitor the FATCA-process without sacrificing time and effort that could otherwise be spent on their core task; treating all the tax payers the way they deserve.
Read the interview with Hans Blokpoel here: https://decorrespondent.nl/2720/Baas-Belastingdienst-over-Big-Data-Mijn-missie-is-gedragsverandering/83656320-f6e78aaf