Today’s revenue agencies are harnessing the insight-driven accuracy that revenue analytics provides to understand their customers better. An analysis of audits of small businesses is likely to uncover specific groups claiming unwarranted expense deductions; however, the move from a general approach to reach customers to one that is precisely targeted through revenue analytics means that taxpayer demographics and types of behaviour can be assessed and utilized to improve tax compliance. This shift from reactive to insight-driven activities can increase the probability of compliance.
This Accenture Point of View explores how leading public service agencies are using revenue analytics to move beyond the categorization of business taxpayers into broad classifications, utilizing advanced tools and segmentation processes to dive more deeply into data to identify meaningful microsegments. The cost-per-contact of automated communications is significantly less than for contacts involving personnel, such as in an audit. In fact, communications with well-focused messages are more likely to be understood and followed.