This paper presents a statistics-based method for detecting value-added tax evasion by Kazakhstani legal entities. Starting from features selection we perform an initial exploratory data analysis using Kohonen self-organizing maps; this allows us to make basic assumptions on the nature of tax compliant companies. Then we select a statistical model and propose an algorithm to estimate its parameters in unsupervisedmanner. Statistical approach appears to benefit the task of detecting tax evasion: our model outperforms the scoring model used by the State Revenue Committee of the Republic of Kazakhstan demonstrating significantly closer association between scores and audit results.
CITATION STYLE
Assylbekov, Z., Melnykov, I., Bekishev, R., Baltabayeva, A., Bissengaliyeva, D., & Mamlin, E. (2016). Detecting value-added tax evasion by business entities of Kazakhstan. In Smart Innovation, Systems and Technologies (Vol. 56, pp. 37–49). Springer Science and Business Media Deutschland GmbH. https://doi.org/10.1007/978-3-319-39630-9_4
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