Improving taxpayer service and tax compliance

Tax agencies worldwide use ILOG’s Business Rule Management System (BRMS) to centralize, externalize and re-use business rules across operations and processes, including:

• Taxpayer interaction and self-service
• Tax return and refund processing
• Audit selection and collection processes
• Tax compliance, risk management and fraud detection

ILOG BRMS-based solutions have been successfully used across several tax sectors , including corporate , capital gains , excise, income, sales , social security and retirement , unemployment insurance and value-added tax (VAT).

ILOG BRMS supports agencies’ SOA strategy. With ILOG BRMS, agencies can create easy-to-use online services, modernize back-end processing systems and automate manual processes, such as audits. ILOG BRMS is the software of choice for capturing critical business knowledge and expertise from a workforce approaching retirement—especially for tax audits selection and collection strategies.

Tax agencies achieve several key benefits with ILOG BRMS:

Accelerate and streamline regulation implementation and maintenance
Traditionally, implementing and maintaining regulations has been a heavy burden on IT staff , because tax regulations are complex and constantly changing. Legacy systems make the maintenance of business logic and the implementation of changing regulations costly, prone to errors, resource-intensive and time-consuming. Moreover, the skills required to maintain those systems are rapidly fading.

Tax agencies that implement ILOG BRMS save significant time and make large-scale improvements in their business rule management processes. Business rules updates can be handled in days rather than months. Business rule templates and clear presentation of business rules streamline the process of updating, and facilitate the re-use of business rules. ILOG BRMS also provides a complete audit trail of business rule changes, satisfying the public sector’s stringent accountability requirements.

Improve tax compliance and fight fraud
Fraud is at the top of tax agencies’ agendas, and it raises numerous challenges. Reducing the tax compliance gap with limited auditing manpower requires increased automation, fine-tuned prioritization of efforts and powerful scoring capabilities.

ILOG BRMS supports tax agencies’ objectives to fight fraud in several ways, including:

• Improved quality, timeliness and security of customer data and richer data matching for tax returns and refunds
• A platform to proactively manage fraud risks and to detect fraudulent patterns as tax returns and refunds are processed
• Dynamic and holistic risk management and fraud detection throughout the tax return, tax refund, audit and collection processes.
• A powerful platform to support audit and collection processes, that integrates tightly with data analytics platforms.

Simplify and expand services to taxpayers
Tax agencies simplify access to tax-related information with ILOG BRMS. For instance, an ILOG BRMS-based solution can interactively guide taxpayers through complex determinations such as tax status and tax filing requirements. This proven approach generates cost savings, improves compliance, reduces taxpayer errors and significantly improves taxpayer satisfaction.

Improve decision making accuracy and streamline processing
Erroneous and improper refund payments are an embarrassment for tax agencies. With ILOG BRMS, tax agencies automate complex routine decisions such as tax refunds calculation, thereby significantly improving the accuracy of those decisions. Since ILOG BRMS provides a complete audit trail of business rule execution case workers can explain decisions to clients and effectively support appeals processes.