Monitoring indirect tax in organisations - How statistical sampling and data analytics can contribute to indirect tax assurance

Samenvatting

In this article, Oscar Smeets en Joël de Vries examine two common methods used for monitoring indirect tax compliance within organisations: statistical sampling and data analytics. Statistical sampling is a powerful tool which can provide a reasonable level of assurance in an efficient way. Data analytics can perform indirect tax monitoring in a data-driven way. The authors first provide a general explanation on both methods, focusing on their distinct functionalities in the context of indirect tax assurance. As each method has its strengths and weaknesses, the authors attempt to compare the value of outcomes and argue that these methods can be used in tandem to enhance indirect tax monitoring activities.