1 https://www.reuters.com/business/finance/oecd-sees-revenue-gains-new- tax-pact-reaching-250-billion-2023-01-18/ 2 https://www.gov.uk/government/statistics/measuring-tax-gaps/1-tax-gaps- summary#accuracy-and-reliability The digital economy is rapidly evolving. Traditional e-commerce has transformed to include the sharing economy, gig economy, streaming video sales, social media influencers, and more. As e-commerce and the sale of digital services has evolved, so too has legislation. Digital service tax laws in the OECD have targeted large multi-national online marketplaces, closed tax loopholes, and required compliance by platforms. The OECD expects tax gains to reach $250 billion with the new legislation. 1 However, even as new laws aim to combat common fraud and tax avoidance schemes, tax collection proves problematic. Small businesses and individual taxpayers commonly underreport income or avoid tax reporting, especially for secondary sources of income. Many of these small players have several income-producing activities among multiple platforms, making auditing difficult. Although lost tax revenues may seem minor on an individual basis, the impact on a national level is significant. In the UK, for example, small businesses accounted for 56% of the £35.8 billion tax gap in the period of 2021-2022. 2 In this eBook, we explore trends fueling tax evasion and non- compliance in the digital economy, and how decision intelligence platforms can empower tax authorities to effectively audit offenders and collect tax revenue. Read on to learn about four key capabilities that will supercharge your investigations: + Data fusion + Unstructured data analysis + Advanced analytics + Unified investigation workspace 3 Combatting Tax Evasion in the Digital Marketplace 2 Challenges for Tax Authorities 1 Tax Evasion in the Digital Economy 4 About NEXYTE 2 3 Combatting Tax Evasion in the Digital Marketplace 2 Challenges for Tax Authorities 4 About NEXYTE