Risk Assessment System Functional Spec_Eng.docx

USAID|ARMENIA TECHNICAL ASSISTANCE TO

SUPPORT TAX ADMINISTRATION REFORMS (TASTAR)

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ԲԱՐԵՓՈԽՈՒՄՆԵՐԻՆ ՕԺԱՆԴԱԿՈՂ ՏԵԽՆԻԿԱԿԱՆ

ԱՋԱԿՑՈՒԹՅՈՒՆ (ՀՎԲՕՏԱ)

Risk Based Audit Selection System (RBASS) for the SRC of RA Functional Specification

DRAFT

Prepared By:

TASTAR

INTRODUCTION

This Functional Specification (FS) defines the functional requirements for the core functions of the Risk Based Audit Selection System (RBASS) at the SRC of the RA. The FS is developed by TASTAR[footnoteRef:1]. The FS is intended to be an unambiguous statement of what the RBASS implementation will achieve, what data will be provided for and functions will be performed, and what outputs users will receive. [1: TASTAR – Technical Assistance to Support Tax Administrative Reforms]

The FS document is the basis of the system design. Using the FS as a guide, software designers shall build databases and operations processing applications to fulfill the requirements described in the FS. The FS will be the basis for quality assurance and acceptance procedure of the final RBASS implementation at the SRC.

DESCRIPTION OF THE RISK BASED AUDIT SELECTION SYSTEM

Current procedure of the SRC Risk Based Audit Selection System is based on manual selection of the risky taxpayers. This method lacks certain important features; such as centralized information collection, automated assessment of the tax returns based on methodologies defined by the TASTAR and SRC Experts, risky taxpayers lists generation in a more precise manner, analysis of the information from various views.

The Purpose of the System The purpose of the RBASS is to support the work of the SRC’s Risk Assessment Department involved in the analysis of all information and preparation of the risk-based audit lists. The system design effort covered the development of an automated system to provide the tool for risk-based formulas flexible development, tax returns assessment, as well as tools for standard and ad-hoc reports generation.

The Objectives of the System The main objectives of the system are described below:

1. RBASS database establishment

2. Initial parameters definition

3. Risk Sets definition

4. Rules Creation per Risk Sets

5. Formulas creation and management

6. Tax returns assessment

7. Risky taxpayers list generation per Risk Sets

8. Risky taxpayers list generation per tax returns for the selected taxpayer

9. Risky taxpayers list generation per Rules for the selected taxpayer and tax return

10. Risky taxpayers final list generation

11. Standard and Ad-hoc reports generation

The Approach of the System The RBASS implementation approach is based on the following components:

1. Analytical module implementation for the management of the Risk Sets, Rules, Formulas

2. Taxpayers Classification module implementation for the assignment of taxpayers to already defined Risk Sets

3. Tax returns assessment module for the assessment of the tax returns submitted by the taxpayer

4. Results generation module, which includes production of risky taxpayers’ lists per Risk Sets, per tax returns, per Rules and the final risky taxpayers list generation.

5. Reports generation module for easy and productive data analysis.

The Scope of the System The general structure of RBAS System is shown on the scheme presented on Diagram 1. The scheme shows data flow diagram started from the initial information definition through Analytical Module, Taxpayer 3 database data and RBASS data interconnection through Taxpayer Classification Module, tax returns assessment through Execution Module, risky taxpayers’ list generation and detailed information of taxpayer per tax return scores through List Generation Module, and ending up with final data analysis through Reporting Module.

Diagram 1. The general structure of the RBAS System modules

FUNCTIONAL REQUIREMENTS

This section outlines the functional requirements of the Risk Based Audit Selection System. Specifying the requirements is critical to ensure that the system developed satisfies user needs.

The System Main Functionalities The RBASS system should be implemented considering the predefined requirements that will assure the system proper functioning. There are few types of information presentation, especially information overview and new data insertion pages. In each information overview page, there is a Filter option that will help users to find necessary information from the overview table quickly and easily. The Filter parameters are different per page and defined based on presented data in information overview table.

It is mandatory for the system to consider all taxpayers in ‘Taxpayer 3’ database that are not liquidated.

In the overview pages, it is required to have paging option, where each page will contain 20 lines.

User Roles and Access According to the system main requirements described by the SRC representatives, the RBASS should be defined as user-dependent system. Main users of the system, being only the SRC staff, should be divided to the three groups:

a) Analytical department users, the most important users of the system, who are responsible for the risks and rules definition in the system, formula creation, taxpayer classification and tax returns assessment module execution;

b) Audit planning department users, who are responsible for the risky taxpayers list generation

c) SRC staff, who is responsible for the Standard and Ad-hoc reports generation

Analytical Module Implementation This module of RBASS serves to provide initial data creation and management with regard to Risks Sets. The module consists of three main sub modules, especially Risk Sets Management, Rules Management and Formula Creation. Below each sub module of the system is described:

Risk Sets Managements sub module provides possibility to define the new Risk Sets that should be a combination of rules. The system provides the following functionality in regard to risk sets:

· Create a new Risk Set (RS) - Where user should provide initial information related to RS, especially name, tax type and description, which should serve as hint to system users in terms of coverage of the RS in overall system. The system will provide possibilities to create a copy of selected RS, which will provide an option for a user to create a new RS based on already selected tax type and defined description. In this case only the RS name data will not be copied from the selected RS, because the name data serves as unique identification of the RS.

· Edit / View Risk Set - The risk set can be edited if it hasn’t been used in the system before. The RS Edit/View page is a New Risk Set page, where the risk set name, tax type and description data are filled with already defined values of the selected RS. The Edit page serves to update the RS defined data, which means that all fields are editable except of RS Name field. The View page serves to view all information in regards to risk set.

· Activate / Deactivate Risk Set - The RS can be available through the system if it is activated. The Risk Set can be activated after the user assigns the Rules to the RS. During the initial stage of the RS creation, if there are no Rules assigned to the RS, the RS cannot be activated. The Deactivation process can be done, if no taxpayer is assigned to the RS. If a user wants to deactivate the RS, first he must deassign the list of taxpayers from the selected RS on the Taxpayer Classification page.

· Rule Management - This is a link to the Rules Management module of the system.

· The following are fields definitions for the Risk Sets Management pages:

Table 1 Risk Sets Overview page

Filter Option

· All

· Profit

· Simple Profit

· VAT

· Social

· Income

· All

· Active

· Not Active

· All

· Used

· Not Used

Execute the Filter procedure.

Set up the values of the Filter parameters to default values.

Table

Represents the sequential number.

Represents the Risk Set Name.

Represents the Tax Type.

Represents the activation status of the Risk Set. If RS is active, than it is marked.

Open New Risk Set page with already filled values.

Change the status of Risk Set.

Open Rule Setup per Risk Set page.

If exists, than Risk Set is used in the system, otherwise is not used.

Open New Risk Set page with filled values.

Open New Risk Set page.

Table 2 New Risk Set page

Input field. The inputted number of characters shouldn’t be more than 255. The value of the field should be unique in the system.

· Profit

· Simple Profit

· VAT

· Social

· Income

Input field. Inputted number of characters shouldn’t be more than 1000.

Open Rule Setup per Risk Set page.

Save Risk Set in the system.

Rules Management sub module provides possibility to create new rules in the system and to manage them. Rules can be created based on the selected RS from the Risk Set Management pages. Rules Management pages have the following functionalities:

· Create Rule - This function provides the option to create all Rules for the selected Risk Set from one page, which makes clear the picture of all Rules, their weights and maximum scores. The weights will be defined by the user, but the maximum scores will be calculated automatically, based on already defined formula in the methodology document.

· Rule Initial Setup – In this page, the maximum score fields are defined as automatically calculated fields. The calculation of each maximum score will be done as follow: 999 will be divided to Sum of all active rules’ weights of the selected RS and multiplied by the selected rule weight.

· Edit / View Rules – The Rules can be edited or viewed depending on the type of user logged into the system. A Rule can be edited, if its current status is not active.

· Activate / Deactivate Rules - The Rule should be activated in order to be available in the system for use. Deactivated Rules in the system are considered as historical information and their data do not impact on the system assessment process of tax returns. When the Rule is deactivated, the system should perform the recalculation process for scores of remaining active rules.

· Rule Management - From the Rule Management page by selecting the Rule, the user has a possibility to start building the formula. The formula builder command will be available only if the Rule is active in the system. The system will provide possibilities to create a copy of selected Rule, which will provide an option for a user to create a new Rule based on already defined weight. In this case only the Rule name data will not be copied from the selected Rule, because the name data serves as unique identification of the Rule. In this case the maximum scores should be recalculated.

· Flags for Rules with Defined Formulas - The rule in the Rules Overview page will have flag, which will mark that the Rule has already a defined formula. If there is no formula defined for the Rule, the Rule cannot be activated.

· On the Rule Management page, the user will have a possibility to view the Rules overview as a table and selecting the edit command, the list of active rules will appear on the Rule Edit page.

· The Rule Edit/View page is a Rule Setup page, where the Rule name, weight and maximum score data are filled with already defined values. The Edit page serves to update the active Rules, which means that all fields except of maximum score field are editable. The maximum score fields values should be recalculated if during the Edit procedure the values of rule’s weights or number of Rules will be changed. The View page serves to view all active rules with their weight and maximum score values for the selected RS.

· In the Rules Overview page, the table information should always be sorted per risk weight in descending order.

· In the Rule Initial Setup page, there should be validation on weight’s values entered by the user. The weights must be in the range of 0.5 – 1.5. If the entered weight will be out of defined range, the system should give a warning message to the user and shouldn’t give possibility to the user to store data, while the weights will not be provided in correct range of values.

· The following are fields definitions for the Rule Management pages:

Table 3 Rules Overview page

Filter Option

Input field. Positive whole numbers with 0.1 accuracy.

Execute the Filter procedure.

Set up the values of the Filter parameters to default values.

Table

Represents the sequential number.

Represents the Rule Name.

Represents the Rule’s weight value. The column sort by descending order.

Represents the maximum score value.

Open Rule Setup per Risk Set page.

Change the status of the Rule.

Open Formula Builder page.

If exists, than for the Rule the formula is defined.

Open Rule Setup per Risk Set page with filled values.

Open Rule Setup per Risk Set page.

Table 4 Rule Setup page

Input field. The inputted number of characters shouldn’t be more than 255. The value should be unique in the system.

Input field. Positive whole numbers with 0.1 accuracy. The range of values should be in 0.5-1.5.

Disabled

Automatically calculated by the system.

Deletes the row of one Rule definition.

If exists, than Rule has active status.

Add a row for the Rule definition.

Calculate maximum score values and represent on the appropriate fields.

Save in the system.

Formula builder page of the system consist of two parts; i.e. Expression Builder and Results pages. Formula builder page should provide information on already selected pair of RS and Rule, for which the user is planning to define the formula.

Formula builder page functionalities are listed below:

· Based on the selected RS, the system should provide the tax return name, which will be considered as a current document in that part of the system.

· The documents tree part presents the current document with its rows and the list of defined application objects with their appropriate sub-objects (Diagram 2). The Document Name will be defined as follows: Document Name = Document Code + Document Name. The Document Row Name will be defined as follows: Row Name = Row Code + Row Name

· By selecting the document and row or object and sub-object pairs, the system will present them on the Formula View page. This page serves to create a mathematical expression, based on already selected [document.row] or [object.sub-object] and use the predefined mathematical operators.

· The following are fields definitions for the Formula Builder page:

Table 5 Formula Builder page

Represents the name of selected Risk Set.

Represents the selected Rule name.

Represents the current tax return name, which is a current document name.

Represents the current document with its rows, as well as application objects.

From the Documents tree input the selected row into the Formula view section.

multi-line Mandatory

Represents the formula definition.

The list of mathematical operators, which are the followings`

· Addition

· Subtraction

· Multiplication

· Division

· Percentage

· Brackets

· Equal sign

· Less than/Greater than sign

· Boolean operators (And/Or)

· Average Function (AVR)

Go to the Results page. Save the defined formula.

The Result page of the formula builder has been defined as a set of three types of results: Single Value, Range of Values and Multiple Value. Below the main functionalities of the Result page are indicated:

· The maximum score of the Rule defined in the system on the Rule Setup page should be shown on the top of the page.

· In the Single Value part, initially under ‘Yes’, the score field should be defined with maximum score of the Rule. Under ‘No’, the score field should contain ‘0’.

· In the section for the Range of Values, the user has a possibility to add range of values as much as he plans, and delete the range.

· The system should make validation of the score fields, when entered by the user scores shouldn’t be more than the maximum score of the Rule and shouldn’t be less than 0.

· Multiple Values section serves to provide possibility to the user to score the Sectors of SRC for the selected pair of RS and Rule. The system should provide possibility to make a selection of Sectors from the defined tree. The multiple values section should have only the one score defined by the user, which will be applicable to each selected Sector. If the Sector is not selected, its score will be equal to “0”.

· The following are fields definitions for the Formula Builder Results page:

Table 6 Formula Results page

Results page

Represent the selected Risk Set Name.

Represents the selected Rule Name.

Represents the selected Rules’ maximum score.

“0” Change the proposed value. The values must be an integer numbers in the range of 0-999.

Input field. The inputted number of characters shouldn’t be more than 255.

Input field. The inputted numbers should be whole values. From field value should be less than the To field value.

Input field. The inputted numbers should be whole values. From field value should be more than the To field value.

Input field. The values should be in the range of 0-999.

Input field. The inputted number of characters shouldn’t be more than 255.

Delete the selected row from the range of values section.

Add new row for the range of values.

Open Sector tree.

Save data in the system.

Sectors tree

Represents the Sector Code

Represents the Sector Name

For selection of Sectors.

Select all sectors from the selection column.

Save selected Sectors.

Taxpayer Classification Module The Taxpayer Classification Module of the system serves to provide connection between initially defined Risk Sets and taxpayers. When taxpayers will be assigned to Risk Sets, the taxpayers tax returns and the set of RS, Rules, formulas will be connected, which will allow the system end users to have connection among “Taxpayer 3” database data and RBAS System data. The system should also provide the possibility to the users to assign to one taxpayer more than one Risk Sets. This part of the system is available to the high-level users, mostly to the analytical department users, who are responsible for the accurate classification of taxpayers. There is a functionality defined for this part of the system, especially the taxpayer assignment / deassignment to the RS. Below you can find some details of the functionality in regard to taxpayer classification:

· Filter Option - The main functionality is a Filter Option with predefined searching parameters, which will help users to easily find the group of taxpayers that will be assigned to the same RS. The risk set list should contain only the list of Risk Sets currently active in the system.

· When the user selects the group of taxpayers and the RS from the provided list, the assignment process can be performed. Only those taxpayer’s tax returns will be assessed in the system, who are assigned to the RS.

· The system provides a possibility to deassign any taxpayer from the RS.

· The following are fields definitions for the Taxpayer Classification page:

Table 7 Taxpayer Classification page

Filter Option

Defines the Taxpayer Name.

· All

· Assigned

· Deassigned

Exclusively for Presumptive Tax

Regional Tax Inspectorate

Organizational-Legal Type

Execute Filter procedure.

Set up the values of the Filter parameters to default values.

Table

Represents the sequential number.

Represents the TIN.

Represents the name of taxpayer.

Represents the Risk Set Name.

Represents the taxpayer VAT status.

Represents the “Exclusively for Presumptive Tax” as Icon.

Represents the Sector Name.

Represents Regional Tax Inspectorate Name.

Represents Organizational-Legal Type.

Save the list of all taxpayers, marked through the column “Assign”, per Risk Set.

Update the list of all taxpayers by deleting the assignments of the taxpayers, who are marked in the column ”Deassign”.

Execution Module The system Execution module is a module which provides an opportunity to assess the tax returns available in the system. This module should be accessible only to the users, who are responsible for the assessment of the tax returns. Below the main functionalities of the execution module are stated:

· In order to make an execution, the user should define the period of time, which should cover the submission date of tax returns that he would like to assess. The period can be defined as a selection of start and end dates, or as a selection per month, per quarter, per year.

· The user can select any period of time to run the execution process, but the system should only consider the tax returns submitted in that period, that haven’t been assessed yet.

· On the Execution page, the last execution period and date of last execution should appear.

· The user should provide the execution name information, which will be used in the system as execution determination parameter.

· Executor name can automatically be defined by the system based on the user’s log-in information.

· The execution number must be determined by the system as a unique number, which with the execution name will be the key information of execution used in the system.

· When the user selects the button ‘Execute’, the system should run the program of the tax returns assessment. The assessment process should be done based on the selected period of time, which will serve as a filter parameter for the tax returns selection. The assessment will be done only for the tax returns that were submitted into the system during the provided period of time. The assessment of taxpayers’ each tax return should be performed based on the taxpayer classification, Risk Set and Rules information and their interconnection.

· The execution procedure should check taxpayers’ tax returns, assess the tax returns and for each tax return to store in the system the total risk score and date of execution.

· During the assessment process of any tax return, if there will be an error for one of the Rules, the tax return shouldn’t be assessed and the system should notify to the user on error information.

· The execution status page should provide information on execution process. Especially the page should list the information on the currently being assessed tax return with its TIN, Risk Set Name, Rule Name, assessed score, etc. At the end of the status page, there should be a section for errors. This section should provide information if the process was completed with 0 errors, or there were some errors identified. This section should be completed on the errors part, thereby notifying the user on errors occurred during the execution process.

· Re-execution procedure should be applicable only during the testing period of the system, when the analytical department staff should execute the system and check the formulas validity. After the testing period, the re-execution procedure of already assessed tax returns should be disabled.

· The information available in the Execution status page should be stored in the database, in separate errors table, which will serve as base information for the system validation / tracking and its improvement by the IT department at SRC.

· The following are fields definitions for the Execution and Execution Status pages:

Table 8 Execution page

Represents the last execution period information.

Represents the last execution date.

· January

· February

· March

· December

· I Quarter

· II Quarter

· III Quarter

· IV Quarter

Defines the list of years starting from 2000 till 2020.

Input field. The inputted number of characters shouldn’t be more than 255.

Input field. The inputted number of characters shouldn’t be more than 255.

Automatically generated field. Represents the unique number generated by the system.

Run Execution procedure.

Run Re-execution procedure.

Table 9 Execution Status page

Represents the start date of the tax returns assessment.

Represents the end date of the tax returns assessment.

Represents the selected month.

Represents the selected quarter.

Represents the selected year.

Represents the execution name.

Represents the executor name.

Represents the execution number.

Multi-line

Automatically and dynamically generated list of execution procedure results.

Risky Taxpayers List Generation Module The risky taxpayers’ list generation module is an overall estimate part of the system, where different levels of lists can be generated with regard to tax returns risk scorings. In each list, there will be a column of Risk Level (RL), which will determine the risk level of taxpayer/tax return in the system. The risk level column should contain numbers starting from1, where 1 is a highest risk level, and sorted in ascending order. When user will select the column, the system will provide list of taxpayers/tax returns sorted per RL, from high risky to low risky ones. This module is divided into two main parts based on the SRC request: Initial and Final lists generation. The users of this part of the system are from Audit Planning Department. The system should provide possibility to the user to export generated lists into Excel sheets. The aforementioned functionalities of sub-modules are described below:

Initial lists generation sub-module is a chain of pages that presents taxpayers information in three different levels. Each level of the functionality will be described in more detail below.

Taxpayers’ risky list generation per Risk Sets is the first level in the chain of the Initial list generation sub-module. The functionalities detailed description is provided below:

· In the first stage, the user should define for which period of time he is planning to generate the Initial list of risky taxpayers. The period can be selected as definition of Start and End dates, or through the selection by month, quarter or year.

· In this module of the system, the date parameters should be applied to the tax returns period of time. For example, if there is a monthly VAT tax return for the April stored in the system, the period of time provided by the user, should be an April or some period of time which includes April month inside. So the all tax returns of April will be considered by the system for the current Initial risky list generation.

· The generated list should contain the general information of taxpayer and total risk scores per Risk Sets. The list structure will depend on amount of active RS available in the system, which means that the columns of the list should be constructed dynamically. Each RS should have the RL column attached to him as described above.

· The total score of each Risk Set should be calculate as follow:

· If it is a yearly tax return, the system will have one tax return per year and its score will appear in the generated list.

· If it is a monthly or quarterly tax return, the system should calculate and provide the average score of all risk scores submitted by the taxpayer from the beginning of the year till End Date of the selected period of time.

· With each Risk Set there should be a column of the Risk Level, which presents the taxpayer’s risky level for the Risk Set. The Risk Level column should have a sort function applied as a command on the name of the column. When the column is sorted, the user can have a list of taxpayers for the selected Risk Set sorted from high risky to low risky levels.

· For each taxpayer, there is a possibility to get access to the detailed information on risks scoring per tax returns, which is a link to the next level of the above-mentioned sub-modules.

· The following are fields definitions for the Risky Taxpayers List Generation per Risk Set page:

Table 10 Risky Taxpayer List Generation per Risk Set

Filter Option

Defines the name of taxpayer.

Defines the values of score range. Values should be integer numbers from 0 to 999.

Execute Filter procedure.

Set up the values of the Filter parameters to default values.

Table

· January

· February

· March

· December

· I Quarter

· II Quarter

· III Quarter

· IV Quarter

Represents the sequential number.

Taxpayers’ Regional Tax Inspectorate

Column

Represents the taxpayers’ Regional Tax Inspectorate name.

Represents the taxpayer name.

Represents the Legal-Organization Type.

Represents the TIN.

The column name should be the current Risk Set Name. The values of the column should be total scores of taxpayers’ assessed tax returns.

Represents the sorting per risk level. The column name should be a link, to sort the column values. The values are positive integer numbers.

Open Selected Taxpayer List Generation per Tax Returns page.

Export to Excel the Period Selection Section data and table data.

Print the Period Selection Section data and table data.

The second level of taxpayers’ risky list generation per Risk Set is the page, where for the selected taxpayer, the detailed information of each tax return and its assessed scoring are presented. Below are detailed explanations of the functionalities:

· This part should present taxpayer’s more detailed information. The table should contain a list of all tax returns that were selected based on the period information provided by user and their assessed scores in the system.

· The tax returns should be grouped per Risk Sets, which will give possibility to the user to easily determine for which RS the taxpayer is considered risky.

· The system should present tax returns sorted per Risk Level inside each RS group. This function will provide possibility to the user to view the tax returns grouped per Risk Sets and sorted inside each RS group per Risk Level.

· For each tax return, there should be a link to more detailed information on tax returns’ Rules and scorings, which is the third level of the above-mentioned sub-modules.

· The following are fields definitions for the Selected Taxpayer List Generation per Tax Returns page:

Table 11 Selected Taxpayer List Generation per Tax Returns page

Filter Option

Tax Return Risk Scores Range

Defines the Tax Return Risk Scores Ranges. The values are positive integer numbers.

· All

· January

· February

· March

· December

· All

· I Quarter

· II Quarter

· III Quarter

· IV Quarter

Execute Filter procedure.

Set up the values of the Filter parameters to default values.

Table

Represents the sequential number.

Represents the tax return name.

Represents the tax return filling period.

Represents the tax return DLN.

Represents the tax return risk score.

Represents the execution date.

Represents the sorting per risk level. The column name should be a link, to sort the column values. The values are positive integer numbers.

Open Taxpayers Tax Return Detailed Information per Rules page.

Export to Excel the table data.

Print the table data.

The third level of taxpayers’ risky list generation per Risk Set is the page, where for the selected pair of taxpayer and tax return, the detailed information is presented. Below are detailed explanations of the functionalities:

· By selecting the taxpayer and tax return, user should have possibility to view detailed information on tax returns’ risk scorings, based on which the tax return was assessed. The detailed information should contain the Risk Set and total risk score. Then the system should present the list of Rules with their scores, obtained during the assessment process, and detailed description for the auditors.

· The following are fields definitions for the Taxpayers Tax Return Detailed Information per Rules page:

Table 12 Taxpayers Tax Return Detailed Information per Rules page.

Represents the taxpayers’ TIN.

Represents the selected taxpayer name.

Represents the selected tax return name.

Represents the selected tax return filling period.

Represent the selected tax return DLN.

Represents the selected Risk Set Name.

Represents the total score of Risk Set.

Represents the Rule Name of the Risk Set.

Represents the assessed score of the Rule.

Represents the description of the Rule, which is a description for Auditors.

Export to Excel the page’s all data.

Print the page’s all data.

Back to the Selected Taxpayer List Generation per Tax Returns page

Final list generation sub-module is a main resulting page of the system, where the taxpayers’ lists will be sorted according to their risk scores and the user will get sorted taxpayers’ lists from high risk level to low. The user will have the possibility to select which kind of data he would like to have in the generated list, based on selection of period of time. The final list will be generated based on the Initial lists used with developed methodology. For the correct methodology implementation in the system, the user must provide some initial information to define the threshold value. The main functionalities of the final lists generation are described below:

· In initial stage, the user should make a selection, which kind of data he would like to have in a final generated list of risky taxpayers. The choice will be proposed based on the period of time or selection per month, per quarter, per year.

· In this part of the system, date parameter should be applied to the tax return’s period of time.

· The final generated list structure will depend on amount of active Risk Sets available in the system, which means that the columns of the list should be constructed dynamically. Each risk set should have also the Risk Level column, which is described in the section 3.6.1.

· For the correct implementation of the final list, the user should define the percentage or threshold value for each risk set. These percentage or threshold values will be a core principle of final list creation. From the Initial list of risky taxpayers per risk set, defined in the section 3.6.1.1, the system should apply defined percentages or threshold values. If the percentage per Risk Set is defined, this means that from the list of each risk set sorted per risk level, the system should consider only the selected percentage of taxpayers starting from the high risk level. If the threshold value is selected, the system should consider those taxpayers, whose risk scores are above the defined threshold value, from the list of each Risk Set sorted per risk level.

· The methodology of final list generation is presented in the Diagram 3:

· The system should have Initial risky taxpayers list separated per Risk Set and sorted per Risk Level of taxpayers for the selected RS.

· From the prepared list, the system should apply percentage or threshold values defined by the user. This means, that in case of percentage, the taxpayers will be selected per defined percentage; in case of threshold, the selection will be done only for those taxpayers, whose total risk score equal or more than defined threshold value.

· This method of taxpayer selection should be applied to all Risk Sets. All taxpayer groups selected from all Risk Sets will be collected in one ‘melting pot’ and the final list of risky taxpayers will be created. The final list of risky taxpayers should not contain duplications of taxpayers from different Risk Sets.

· The final list should contain the list of all taxpayers and the Risk Sets with their risk scores and Risk Levels. The system should provide a possibility to sort the list of taxpayers per RS by sorting the RL values for the appropriate RS. The risk score column can be sorted through the command, which is column name.

· The system will provide additional possibility to the user, to export final risky taxpayers list grouped per tax inspectorate offices. This option will export already generated list of all risky taxpayers, grouped per tax inspectorate offices.

· In addition to the general list of taxpayers the system will provide an opportunity to view the large taxpayers list, which can be exported to Excel application as well. There will be an option to differentiate which list the user would like to generate; risk based selected taxpayers or large taxpayers.

· With the final list, detailed information will be provided to the user. From the final list, by selecting the taxpayer, there will be detailed information on each taxpayer per tax returns and their scores, which is a link to 3.6.1.2 section module. Then the user will be able to get detailed information on each tax return of selected taxpayer, which is the list of Rules with their scores and descriptions for auditors and presented as a link to 3.6.1.3 section module.

· The following are fields definitions for the Risky Taxpayers General List page:

Table 13 Risky Taxpayers General List page

Filter Option

Defines the name of taxpayer.

Defines the values of score range. Values should be integer numbers from 0 to 999.

Execute Filter procedure.

Set up the values of the Filter parameters to default values.

Table

Defines the Risk Set Name.

Defines the value for the Percentage or Value. The field value is positive integer number. If the Percentage is selected, the field’s values should be in the range of 0-100. If the Value is selected, the field’s values should be in the range of 0-999.

· January

· February

· March

· December

· I Quarter

· II Quarter

· III Quarter

· IV Quarter

Construct risky taxpayers’ general list.

Construct large taxpayers list.

Represents the sequential number.

Taxpayers’ Regional Tax Inspectorate

Column

Represents the taxpayers’ Regional Tax Inspectorate Name.

Represents the taxpayer name.

Represents the Legal-Organizational Type.

Represents the TIN.

The column name should be the current Risk Set Name. The values of the column should be total scores of the taxpayers’ assessed tax returns.

Represents the sorting per risk level. The column name should be a link, to sort the column values. The values are positive integer numbers.

Open Selected Taxpayer List Generation per Tax Returns page.

Export to Excel the Threshold Definition Section data, the Period Selection Section data and the table data.

Print the Threshold Definition Section data, the Period Selection Section data and the table data.

Standard Reports Module Standard Reports are the reports that should be defined by the SRC staff based on their ongoing needs during the system usage process. Standard reports are described as reports that have fixed templates, fixed type of data to be presented. Standard reports have parameters that should be defined by the user before generation of reports. Based on that parameters definition, the standard reports data will be different. Currently the SRC hasn’t defined any standard report, but during the system usage process, the reports can be added to the system, based on the SRC needs.

Table 14 Standard Reports page

Generate the selected standard report.

Ad-hoc Reports Module The Ad-hoc Reports tool should provide possibility to the system users to generate any type of report and have data representation from different views. In order to run the ad-hoc module, the user should make selection from the parameters that are already defined in the system. The parameters include the period of time, Risk Set, Rule, TIN, Tax Type, Sectors, etc. After selection of the parameters, the system should generate the report with data, which covers the selected parameters.

Table 15 Ad-hoc Reports page

Defines the taxpayer name.

Exclusively for Presumptive Tax

Check Box

Regional Tax Inspectorate

Dropdown

Organizational-Legal Type

Dropdown