Siloed data Tax authorities have difficulty fusing data from ecommerce and Web platforms, tax submissions, and internal databases to present cohesive profiles for individuals or companies due to the complex nature of these data sources and the fact that some sources must be obtained from external agencies or entities. As sellers increasingly move towards utilizing multiple platforms to sell their goods and services, tax authorities are witnessing an increase in abuse. Even when platforms issue tax documentation, it is typically the responsibility of 12https://www.ifcreview.com/news/2023/february/europe-spain-to-clamp-down-on- tax-fraud-by-digital-nomads-and-fake-non-residents/ 13 https://thinkremote.com/digital-nomad-statistics/ Digital nomads, defined as individuals who work or travel outside of their home country for more than half the year, are creating a challenge for tax authorities. Complex rules regarding the origin of income, residency qualifications, and the requirements of citizens often mean that digital nomads should be reporting in multiple countries. Many don’t understand the requirements, exploit loopholes, or simply refuse to report income, meaning that countries are missing out on tax revenue. In 2023, Spain announced it would “intensify its control on residents who artificially reduce their fiscal bill by using the non-resident tax 12 .” Digital nomads As the digital economy becomes more commonplace and sophisticated, tax authorities are struggling to detect and investigate tax evasion, within the massive volumes of both structured and unstructured data spread across siloed sources. Challenges for Tax Authorities + Freelancers and expats often dodge taxes owed to multiple countries + Spain is investigating digital nomads qualifying as residents who are noncompliant + There are an estimated 35 million digital nomads worldwide 13 3 Combatting Tax Evasion in the Digital Marketplace 1 Tax Evasion in the Digital Economy 4 About NEXYTE 6 2 Challenges for Tax Authorities