The Ministry of Finance and the State Fiscal Service have developed an algorithm for the automation of cameralistic checks applying a unified methodology for all sectors at the level of a software product to process reports and tax declarations in an automatic mode. This algorithm can significantly accelerate the processing operations.
What’s it about?
To conduct cameralistic checks, the SFS engages more than 2,000 employees who have to examine more than 18.5 million documents per year. Subject to cameralistic checks are data in the tax declarations (calculations) submitted by taxpayers as well as data (quantitative and financial) of the electronic VAT administration.
As part of the comprehensive reform of the SFS, the task force at the SFS developed an algorithm for automated cameralistic checks applying a unified methodology. The pilot application of this algorithm in one of the regions of Ukraine demonstrated that cameralistic checks can be significantly accelerated while reducing the impact of the human factor.
The use of the algorithm makes it possible to examine one tax declaration within 5 minutes, whereas a tax inspector needs approx. 40 minutes for the same operation.
What’s the benefit?
The automation of cameralistic checks, i.e. the application of the above algorithm, can significantly speed up the work of the SFS. For instance, time consumption for the check of corporate profit tax reports can be reduced by 75%.
Also, the automated process significantly reduces human interventions and thus reduces corruption risks. On the other side, taxpayers will clearly understand what criteria cameralistic checks by the SFS are based on, since these criteria will be applied for all business entities. Also, the automation of cameralistic checks actually releases taxpayers from having to wait for check results, since the process will be carried out following clear criteria and without human intervention.
What comes next?
The task force is finalizing the methodology of the developed algorithm for cameralistic checks. It is planned to implement the algorithm as a pilot project in all regions to automate cameralistic checks throughout the country.
In the long-term run, cameralistic checks are planned to be integrated into the taxpayer’s electronic office to inform taxpayers online about the check of their tax declarations.