14https://www.mckinsey.com/industries/public-sector/our-insights/can-e-commerce- help-customs-agencies-fix-old-problems 15 https://coresight.com/research/10-key-trends-shaping-livestreaming-e-commerce- in-2023/ the seller to compile statements and report taxes. Sellers may fail to report some or all income or may only report income from selected platforms to appear to fall below the de minimis value threshold for paying VAT or income tax, which varies by country. Other tactics to avoid taxes include separating shipments into smaller parcels to fall below the de minimis value threshold for VAT 14 . Tax authorities need tools to reconcile the actual income and tax submissions that sellers make across platforms, as well as reconcile reports presented in different formats. Unstructured data The growing trend of live streaming for promotional and sales purposes creates difficulties in accurately identifying sales made across different online platforms. Livestreaming ecommerce in the US is estimated to skyrocket to $31.7 billion in 2023, up 186% from 2021 15 This development amplifies the difficulties tax authorities already face when grappling with unstructured data they collect from text, images, video, and audio. To accurately obtain information on sales and sellers, tax authorities need the ability to automatically detect and analyze images, audio and video from live streaming. These challenges make scaling up and accelerating audits and investigations difficult for tax authorities. Without the right tools to automate insights and prioritize audit candidates, investigation teams often resort to manually parsing tax submissions, posts, and other data. Our next section will detail what capabilities tax authorities need to look for in tools to help streamline the tax auditing process relating to the digital economy. 3 Combatting Tax Evasion in the Digital Marketplace 1 Tax Evasion in the Digital Economy 4 About NEXYTE 7 2 Challenges for Tax Authorities