Data Driven Tax - Actian...Extensive online 24x7x365 presence. Continued Major Focus on digital...
Transcript of Data Driven Tax - Actian...Extensive online 24x7x365 presence. Continued Major Focus on digital...
Data Driven TaxActian Conference, London, Nov 1st 2018
➢ The Office of the Revenue Commissioners is the primary state body responsible for the assessment and collection of taxes and duties in the Republic of Ireland.
➢ Approx. 6100 staff collecting almost €51bn in 2017.
➢ Taxpayers and intermediaries e.g. accountants, tax practitioners, agents expect a joined-up Revenue operation for contacts, collection and audit
➢ Government requires and assumes Revenue can take on new taxes and duties readily.
➢ Data is our raw material and is at the heart of everything we do.
➢ ICT is a key enabler of the Revenue Business.
➢ Complex and heterogeneous ICT environment but Ingres DB still at the heart of our systems.
Setting some Context
To understand what we can do with data, you need to understand
where we’ve come from…
Our administration of tax and customs by reference to international benchmarks
is highly rated
Ease of Paying Taxes Ranking*
Burden of Customs Ranking**
2012 6th world (1st EU) n/a 2013 6th World (1st EU) 5th World (4th EU) 2014 6th World (1st EU) 8th World (3rd EU) 2015 6th World (1st EU) 6th World (2nd EU) 2016 5th World (1st EU) 6th World (2nd EU) 2017 4th World (1st EU) 6th World (2nd EU)
*World Bank / PwC, Paying Taxes reports.
**World Economic Forum, The Global Competitiveness Report.
How are we doing?
Registration
Returns
Collection
Assessment
InterventionManagement
MIS
Registration
Returns
Collection
Assessment
InterventionManagement
MIS
Registration
Returns
Collection
Assessment
InterventionManagement
MIS
Common Registration
Common Returns, Collection etc
Common Caseworking
Common Business Intelligence
From multiple disparate systems To a single integrated framework
Tax 1 Tax 2 ..Tax n
CRS
ITP
AIM
IBI
…then Internet enabled ROS
Tax 1 Tax 2 ..Tax n
Integrating our data
Core Database powered by Ingres
Integration driven services Developed from the mid 1990s onwards to provide;
• Single view of the customer,
• Significant automated processing,
• Strong support for both customer service and compliance activities,
• Access to both Revenue and 3rd party data,
• Significant Business Intelligence capability,
• Analytics to prevent, detect and confront fraud using some basic real-time models.
• Continues to evolve to this day – still using Actian Ingres & OpenROAD.
OpenROAD
JSP/Angular
▪ Extensive online 24x7x365 presence.
▪ Continued Major Focus on digital services.
▪ Internet based Revenue Online Services (ROS)and MyAccount provides secure, full self-service functionality for most taxes/duties for business, tax agents and individuals.
▪ Customs largely facilitated by B2B services.
▪ Backed by legislation – mandatory efiling.
▪ Prefilled tax returns based on data held by Revenue.
▪ Full visibility of Revenue tax record.
▪ Mobile aware and phone app available for Customers
Customer Facing services
Transactional Data to BI
Provide sophisticated BI to users from Transactional Data using ETL techniques including the use of HVR used to move data from Ingres to Vector.
Presentation layer uses a mix of suitable tooling.
This data lives in a separate Data Warehouse to ensure no impact on live systems.
This allows for all sorts of querying/reporting/matching/3rd
party data take-on/specific batch…..
Ingres
But things are changing
Business vision
(realtime interfaces for PAYE/VAT)
PAYE RTI
Shared economy (e.g. Airbnb, Uber)
Contingent workforce growth
Emerging trends (e.g. Internet of things, Bitcoin)
Technology advancements (e.g. machine learning, natural language processing, touch commerce)
Technology obsolescence
Significant information from other jurisdictions
International Tax, Trade wars….
What’s next?Natural Taxation
TraditionalTaxation Burden
• Self Assessed• Taxpayer Registration• Information Search• Additional Business Process
Convenience
• Revenue Reporting• Automatic Inclusion• Information Prompt• Embedded Business Process
• Complex Tax Legislation • More ComplexTax LegislationCertainty
• Period Based Reporting• Deferred Accuracy
• Transaction Level Reporting• Real-Time
“Natural Taxation”
Insight Driven Processing
Further evolve IT to support a fundamental shift in tax policy.
Strengthen the partnership between business and IT.
Support a different way of working for both our external and internal customers in today’s digital world.
Use technology and data to drive efficiency through;
• More real-time and natural taxation• Better audit selection, • Automated returns, • Improved real-time risk monitoring,• Prompted reminders/warnings,• Increased internal measurement and BI capability,• Better risk analysis,• And more……..
Real-time PAYE
Seamless integration of reporting into the payroll process
Employees to be paidGet latest Revenue Payroll Instructions
Perform Calculations Finalise
Bank File / Cheque
Payslips
Revenue Report
Money in Bank / Hand
Payslips
Pay and Deduction in
PS
• Largest change to PAYE tax system introduction in 1960s• Major engagement with employers and payroll software industry• Will streamline and simplify PAYE process• Expected “bounce” in yield• Will provide huge data stream – further insight• Go-live 1st Jan 2019
Transactional Application
Hazelcast
IngresHbase / Hadoop
HadoopVector
Business Intelligence Application
PAYE Hybrid Data stack• Large volume of Returns – initially stored in-memory (Hazelcast)• Written out to Hadoop as JSON objects• Specific tax return data parsed into traditional RDBMS tables• BI run against Hadoop with some processing in Vector for performance
Bringing order to chaos
The production of BI statistics and metrics based on data is not for the unskilled or casual user. Democratisation of BI needs controls ideally via extensive filter-capable dashboards.
For investigative analytics and BI, formal statistics and hypothesis testing consider developing Centres of Excellence with a “hub and spoke” arrangement.
High Level SNA Architecture
SNAReports
Visualisation
ETL
Network
creation
Data:Flattened,cleansed,
standardised,entity-resolved
Graph Database
CRS
CRO
Data
Warehouse
SNA, powered by
ITPCIF
CIF VIEScapdtiVW
SNACommonality
tool
Social Network Analysis (SNA)• Another way of analysing data• Requires good IT and good business
analysts to interpret the networks correctly• Ideal for targeting fraud
Allows disparate data to be linked based on things like;address, email, phone numbers, bank accounts,Directorships, etc.
Gives some very interesting insights!
Interrogation of data using Social Network Analysis (SNA)
Analytics Warehouse Stack
PAYE/VAT ABT ETL’s
ETL Server
SAS Server
Tax Modeller SAS Frontend
SAS
Datastore
Warehouse Servers
Cloudera Navigator
Hadoop Cluster
Working BusinessData
Marts
Hadoop ETL’s
Control
R Server
R Studio R Shiny Reports
Cloudera Hue
Hadoop Adaptive
Load (HAL)
Staging Integration
Bulk Nav
Metadata
Sourc
e
Data
Quality
Rules Engine
Eskort RISK
Rules Engine
Transactional DBs (Ingres)
ITP
VIES AIM
IIM COpenL
ECUS REAP ICRTR
CRSCIF
Vector
1-way data flowDatabase
Internal Application
GUI/User Application
2-way data flow
• Completely dedicated Analytics warehouse, separate to BI environment.
• Allows for experimentation, etc.• Holds ABTs for Data Scientists.
Best of breed tech…..
In summary
• Lots done, but had a good base in place
• Focus on what data you already have and join it up
• Matching data is hard
• Business and IT are one in the same – work collaboratively
• As ever, beware of silver-bullets!
• Pilot things, use open source tools
• Staff training and change management are essential
• The journey never stops, you have to keep running
• Enjoy – this is interesting, worthwhile and fun