Solutions for Business Intelligence and Instrumental Support of Tax Administration

Federal Tax Service (Russia)

Customer information

Customer profile: The Federal Tax Service (FTS of Russia) is a regulatory and supervisory authority of the executive branch, the main function of which is to control compliance with tax legislation in the territory of the Russian Federation.

As the administrator of tax revenues, the FTS of Russia enforces the execution of the federal budget related to managed revenues, monitors the timeliness of tax receipts, and detects and remedies violations of tax administration.

Description

Prognoz developed several science-driven and innovative software solutions for the Federal Tax Service to improve efficiency of managerial decision-making with regard to tax administration. These solutions provide Business Intelligence and instrumental support for monitoring, analysis, planning, and forecasting of tax revenues on all levels of the budgeting system of the Russian Federation.

Scope

The implementation of these projects provided the following benefits and assisted with the following tasks with regard to tax administration:

  • Data integration and consolidation from different sources in a unified information resource
  • Immediate monitoring and complex analysis of tax revenues and tax liabilities within the budgeting system of the Russian Federation, with results displayed by constituent entity and by type of economic activity
  • Monitoring and analysis of key indicators of the socioeconomic development of the Russian Federation in general and of constituent entities
  • Monitoring and analysis of the structure of tax base indicators by constituent entities of the Russian Federation and by the units of interdepartmental administrations
  • The creation of standard consolidated analytical documents on the socioeconomic state and tax system of the Russian Federation and of its separate constituent entities, in texts, tables, graphs, and maps, including analytical reports, tax profiles of the constituent entities of the Russian Federation, and so on
  • The planning of tax revenues and the monitoring of budget execution as to the income managed by the FTS of Russia, and the analysis of deviations from indicative figures of actual tax revenues
  • Multidimensional simulation of statistical forecasting of tax revenues to the federal and consolidated budgets of the Russian Federation in general and of its constituent entities, with consideration of socioeconomic development forecasts and regulatory decisions related to budgeting and tax policy on the federal level with scenario calculation support
  • Shaping, monitoring and analysis of performance indicators of tax bodies including by territories
  • Analysis of tax risks of taxpayer activity
  • Analysis and scenario simulation of property tax indicators
  • BI support for management of the FTS of Russia (implemented as an executive e-office)

Project hallmarks

  • A unified analytical data warehouse that contains integrated and consolidated data from different data sources, including summary data for the constituent entities of the Russian Federation, the administrative offices of the FTS of Russia, and the interregional inspectorates for major taxpayers; as well as data on personal taxpayers
  • User-friendly immediate access and tools for data analysis and tax revenue planning, tools for the preparation of standard analytical materials, libraries with various economic and mathematical methods, and models for simulation and scenario forecasting of tax revenues
  • Complex monitoring and analysis of key indicators of the tax system and of socioeconomic development, both of the Russian Federation in general and of its constituent entities

Results of the implementation of the system

  • Prognoz-powered systems provided the staff of the central office of the FTS of Russia with BI support for monitoring, analysis, planning, and forecasting of tax revenue by levels of the budgeting system of the Russian Federation.
  • The system enabled automation of the analytical activity of five subdivisions of the FTS on the federal level (with about 60 users).
  • The implementation of the systems improved the quality, efficiency, and immediacy of analysis and managerial decision-making by the central office of the FTS of Russia, resulting in reduced effort and improved output.
  • Analytical tools developed by Prognoz are used for decision support related to changes in the tax legislation of the Russian Federation.