Working Smarter in Tax Debt Management

Many revenue bodies have been developing strategies and approaches to improve the tax collection and recovery processes, so that they are more effective and cost less. Very promising and proven new practices have emerged, which can deliver spectacular improvements in performance in tax collection and recovery. This report provides a comprehensive overview of the best practices in tax debt management, with a particular emphasis on how to better differentiate debtors when deciding how to best secure payment and what can be done to ensure that payment issues are considered earlier in the compliance and collection process.
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The application of advanced analytics
Analytical insights in behaviours and payment risks enable more effective and efficient debt prevention and collection. Risk based approaches and predictive models enable the automatic selection and identification of treatment strategies that target tax debtors on the basis of their characteristics and past behaviour, in other words: working smarter in debt management. This chapter discusses advanced analytics to improve risk analysis and to establish a more advanced segmentation of debt cases. Better segmentation ensures that the debt collection treatment used is the one that is most likely to be effective.
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