The European Commission has released its new Transaction Network Analysis (TNA) tool designed to help EU countries crack down on criminals and VAT fraud.
With the new tool will allow tax authorities fast and easy access to cross-border transaction information, driving the wat for quick action when VAT fraud is flagged. The EU stated that VAT fraud can happen within the blink of an eye and EU member states should have tools which ensure quick action.
This TNA solution was built through close collaboration with member states and the commission and will now foster close cooperation between the EU’s network of anti-fraud experts (‘Eurofisc’) when analysing information. Through this, they will be able to improve VAT carousel fraud detection and interception.
By boosted cooperation and information exchange between national tax officials, Eurofisc officials will be capable of cross-checking information with criminal records, databases and information held by Europol and OLAF, the EU’s anti-fraud agency.
Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said, “Criminal VAT fraud is one of the major issues facing our public finances today and its eradication should be a top priority for EU governments.
“This new tool will increase the speed at which authorities can uncover and act on suspicious activity. But this progress does not lessen the need for deeper and more fundamental reform of the EU’s VAT system, to ensure it can cope with the vast amounts of trade taking place across borders in the EU. ”
Following a meeting on the topic, anti-fraud officials from member states participating in the TNA agreed on how the tool will function and how collected information will be used.
Copyright © 2019 FinTech Global
Copyright © 2018 RegTech Analyst
