Tax Authority Doubles E-Commerce Tax Revenue

APAC Tax Authority Doubles E-Commerce Tax Revenue With AI-Powered Decision Intelligence →An APAC-based tax authority faced growing challenges in detecting tax evasion across the digital economy, including misreported income and VA T declarations from transactions conducted on e-commerce platforms. →Correlating marketplace activity with tax submissions and internal data was difficult and time- consuming, limiting the authority’s ability to build a complete picture of individuals and businesses. →The authority struggled to identify and prioritize high-risk audit candidates and investigate potential tax evasion across fragmented sources. →The authority deployed NEXYTE, Cognyte’s decision intelligence platform, with the goal of boosting tax collection from online marketplace sales and improving the audit and investigation process. →NEXYTE fused together marketplace, tax, VA T and internal data and applied machine learning and unstructured data analysis to help investigators identify potential tax evasion and prioritize cases by risk.Case Study Key T akeaways Challenge The tax authority struggled to correlate transactions across online platforms. Siloed data and limited analytics made it difficult to detect potential tax evasion and prioritize audits by risk. → Fragmented data and intelligence Data from siloed platforms, tax submissions and internal databases could not be fused to present all information pertaining to each individual or company as part of a holistic profile. This made calculations and tagging of audit candidates difficult and time consuming. → Identifying and prioritizing high-risk cases Without advanced analytical capabilities, the tax authority couldn’t effectively flag suspicious indicators and individuals and was thus unable to prioritize audits based on potential risk → Growing digital commerce footprint The trend of video streaming and photo sharing on online platforms for promotional and sales purposes creates difficulties in accurately identifying revenue earned online.

Solution The tax authority deployed NEXYTE, Cognyte's decision intelligence platform, to strengthen tax collection from online marketplace sales and improve audits and investigations. NEXYTE provided the following capabilities in one unified workspace: → Data fusion Combined relevant marketplace, tax, VA T and internal data for prioritized audit candidates, helping investigators identify reporting discrepancies and connections between related businesses. → Machine learning-powered risk scoring Applied models trained on historical tax fraud data and analyst-defined rules to score and prioritize audit candidates by risk. → Unstructured data analysis Analyzed structured and unstructured data to identify sales indicators and flag potential discrepancies in reported income and VA T declarations. → Investigation workspace Brought relevant data and findings into one workspace, enabling investigators to explore cases and examine relationships using visual tools, filters and tags. → Visual Link Analysis Mapped connections among high-risk audit candidates, their businesses and tax declarations, helping investigators visually explore relevant data and identify relationships requiring further review. → Video analytics Estimated sales volumes for prioritized audit candidates based on relevant sales indicators. NEXYTE Risk Scoring NEXYTE Entity Extraction from text

Outcome About Cognyte Cognyte, a global leader in data processing and investigative analytics solutions, helps government agencies and other organizations eliminate the unknown and make smarter, faster decisions with Actionable Intelligence for a Safer World™. Use of these products or certain features may be subject to applicable legal regulation. The user should familiarize itself with any applicable restrictions before use. These products are intended only for lawful uses by legally authorized users. Not all features may be available in all jurisdictions and not all functionalities may be available in all configurations. Unauthorized use, duplication, or modification of this document in whole or in part without the prior written consent of Cognyte is strictly prohibited. By providing this document, Cognyte is not making any representations regarding the correctness or completeness of its contents and reserves the right to alter this document at any time without notice. Features listed in this document are subject to change. Contact your Cognyte representative for current product features and specifications. 2026 Cognyte cognyte.comImproved audit prioritization Achieved 85% risk-scoring accuracy, helping investigators focus audit Detection of emerging fraud patterns Identified a new pattern involving fashion sellers operating through online marketplaces. Increased e-commerce tax collection More than doubled tax collection from e-commerce platforms compared with the previous year. Identification of ongoing tax avoidance Correlated sales activity with reported income to detect a group of sellers that had avoided taxes for two years. NEXYTE helped the tax authority identify and prioritize high-risk audit candidates with 85% risk-scoring accuracy, while uncovering emerging patterns of tax evasion across online marketplaces. The authority more than doubled tax collection from e-commerce platforms year over years. → Video analytics Estimated sales volumes for prioritized audit candidates based on relevant sales indicators.