Machine Learning and Advanced Analytics in Tax Fraud Detection

Abstract

We all are passing through Big Data Renaissance right now. Academic literature shows increasing interest to subject of application of Big Data technology to cross-sectoral business and relevant scientific research. But portion of research papers devoted to application of Big Data to Taxation is relatively small, despite of the fact that tax generates huge amounts of Data and has enormous potential to benefit from Big Data Analytics. This paper is a conceptual approach to build theoretical and methodological foundation for Data Analytics application in taxation. It is described how tax authorities can benefit from their operational data. Primary prerequisites for efficient application of Advanced Data Analytics are revealed.