IVIX Solutions for the Public Sector

The digital transformation of commerce has spawned a litany of tax compliance challenges for authorities. IVIX’s e-commerce solution equips tax authorities with better visibility and precise insights into true business activity and unreported revenue for businesses selling online. Leveraging open-source intelligence (OSINT), AI, and graph analytics, the IVIX solution does this rapidly and at scale, enhancing tax transparency and fostering compliance. IVIX’s turnkey e-commerce solution helps authorities to:

• Ensure all eligible independent e-commerce sellers are registered and compliant, immediately helping to increase tax revenue and effectively curbing ongoing revenue loss
• Analyze aggregated data of business activity across popular e-commerce platforms, including online marketplaces like Etsy and Amazon, and websites built on platforms such as Shopify (which are not covered under marketplace facilitator laws)
• Identify e-commerce websites operating outside major marketplaces
• Detect whether businesses are accurately collecting and remitting sales tax
• View up-to-date information on taxes paid versus taxes owed by online sellers within a specific jurisdiction
• Calculate potential tax liabilities and detailed revenue analysis for activity on each platform
• Access critical metrics, including transaction volumes, sales data, and tax compliance data

Leveraging publicly available data and AI, IVIX’s e-commerce solution automatically monitors and aggregates online business activity, marrying the information generated by online marketplaces with data obtained automatically from various public platforms to identify the entities behind that business activity. This data is automatically analyzed and incorporated into IVIX’s extensive graph database, delivering a list of leads to tax authorities containing seller profiles, their business activity, the platforms where they do business, and total revenue generated. IVIX’s solution does this at speed and at scale, rapidly canvassing the landscape to produce investigative leads for tax authorities.

For each lead generated, IVIX provides the taxpayer entity (i.e., name, jurisdiction, contact information) and their revenue, in addition to all the supporting internet data used to produce each lead. Once the tax authority receives these leads from IVIX, they can be automatically internally matched to tax authority data to calculate unreported revenue. The insights provided by IVIX’s solution enable tax authorities to accurately and efficiently identify non-compliant businesses on e-commerce platforms so they can easily take appropriate action. One tax authority used IVIX’s e-commerce solution to quickly identify 100 leads, of which 97% were found to be non-compliant, revealing more than $50 million in untaxed revenue.

The rise of cryptocurrencies and non-fungible tokens (NFTs) has introduced new complexities into the world of tax compliance. The ability for tax authorities to accurately identify and attribute income generation is especially critical in this rapidly evolving digital industry where anonymity is purposefully designed into the system. IVIX's turnkey solution for Crypto and other digital assets gives tax authorities visibility into complex digital transactions, ensuring crypto-related revenue streams are collected efficiently. IVIX’s Crypto solution delivers:

• Transaction Visibility: IVIX’s solution dives deep into major blockchain platforms like Bitcoin and Ethereum, NFT marketplaces, and Social Media platforms, capturing detailed transactional data and profile information to identify potential tax liabilities.
• Wallet Identification: IVIX’s solution employs advanced techniques to trace crypto wallet owners, even when their identities are obscured by semi-anonymity on digital platforms.
• Tax Obligation Insights: IVIX’s platform provides a clear analysis of tax obligations derived from crypto and NFT transactions, ensuring authorities can detect non-compliant behavior.
• Detailed Metrics: Authorities are equipped with comprehensive metrics, including transaction volumes, sales values, and specific compliance data, to act on non-compliant individuals and entities.

A tax authority using IVIX’s Crypto solution identified 104 high-impact leads, uncovering over $100 million in unreported revenue. The IVIX platform leverages AI, automation and OSINT to monitor and attribute global activity related to digital assets. The result is an expansive graph database of buys, sells and trades, the associated crypto wallets, and a precise accounting of the financial transactions, expressed both in cryptocurrency and USD at the exact moment of sale. In addition, the IVIX platform marries this information with data obtained automatically from various public platforms to identify the entity behind the transactions. While challenging to do manually due to the subculture of anonymity inherent in the crypto world, IVIX’s technology can identify the entity behind the avatar at speed and scale, within minutes for many thousand subjects. IVIX’s technology can also cross-reference and match with tax authorities’ data to automatically calculate any tax deficiency.

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The rise of global financial markets and offshore asset storage has made compliance with international tax laws a significant challenge. IVIX’s FATCA/CRS solution is designed to help tax authorities ensure adherence to tax regulations and uncover unreported offshore income by entities liable for taxation.

Key Features:

• Automatically identifying unreported offshore assets at scale: Using sophisticated algorithms, IVIX traces and identifies previously hidden foreign assets that are subject to reporting under FATCA/CRS.
• Identifying entities with incomplete or faulty details, including missing or incorrect IDs, misspelled names, nicknames, and unidentified addresses. IVIX’s proprietary algorithms enhance the identification of previously unknown entities by up to 60%, cross-referencing partial data for more accurate detection of non-compliant entities.
• Incorporating detailed FATCA/CRS reporting standards: Built to address FATCA and CRS reporting standards by incorporating detailed data points like payment types, controlling entity types, account holder types, and more. This enables accurate insights and comprehensive reports on tax non-compliant entities.
• Proprietary algorithms for automating tax compliance checks: IVIX’s advanced algorithms analyze multiple types of reported income, tax years, and related entities where income may be reported. By doing so, these algorithms have reduced false positives by over ten times, delivering precise insights and comprehensive reports on non-compliant entities.
• Proven success: IVIX has helped a European tax authority uncover over $4 billion in hidden offshore assets, recovering substantial tax revenue and enhancing compliance efforts.

IVIX’s FATCA/CRS solution empowers tax authorities to efficiently uncover hidden offshore assets, enhance compliance, and recover lost tax revenue. Automating complex data analysis streamlines tax enforcement, minimizes false positives, and significantly reduces compliance costs.

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The popularity of short-term rentals and sharing platforms is undisputed: Globally, the Short-Term Vacation Rental Market is expected to generate USD 100.8 Billion in revenue in 2024. Semi-Anonymous profiles refer to hosts or property owners who choose to remain undisclosed or unidentifiable when it comes to tax-related matters. IVIX enhances transparency by providing tax authorities with precise insights into unreported revenue from short-term rental platforms. IVIX has developed a Short-Term Rental solution that uses publicly available data across the world to calculate the amount of rental income by participants in the short-term rental market and deliver this to tax authorities. The IVIX Short-Term Rental Solution:

• Collects and analyzes online rental listings from web platforms.
• Demystifies anonymous short-term rental profiles.
• Identifies host tax identification number and revenue.
• Provides comprehensive information to ensure accurate tax collection.

IVIX’s Short-Term Rental solution is a turnkey solution that enables tax authorities to rapidly identify non-compliant hosts and take appropriate action, boosting accuracy and efficiency while recovering tax revenue and fostering compliance.

The Gig Economy is the portion of the labor market characterized by short-term jobs and typically flexible hours, such as freelancing, as opposed to traditional full-time jobs. According to the World Bank, the Gig Economy accounted for 12% of the total global labor market in 2023. The rise of the Gig Economy has revolutionized the way work is done, yet the flexibility of the Gig Economy often brings opacity in tax compliance, as freelance activities scatter across various platforms. IVIX’s solution harnesses the sprawling world of freelancing into a coherent, transparent framework for tax clarity. By navigating the intricate maze of digital portfolios, client reviews, and project fees, IVIX’s Gig Economy solution:

• Extracts comprehensive business activity data pertaining to freelancers from freelance web platforms.
• Integrates insights from social media platforms where freelancers often advertise services, network, and engage with clients.
• Pinpoints tax identification numbers and correlates them with the associated revenue streams, directly linking freelancers to their fiscal responsibilities.
• Evaluates potential tax obligations to ensure a transparent record of all freelance transactions and earnings.
• Furnishes pivotal metrics tailored for tax authorities, such as transaction volumes of freelancers and project-specific tax compliance data on major platforms.

IVIX’s Gig Economy solution enables tax authorities to identify and address noncompliance within the vast freelance ecosystem, at speed and scale, so authorities can prioritize the highest-impact cases.

When corporations operate across borders, employ resources from different tax jurisdictions, and capitalize on offshore benefits, the intricacies of their operations become a challenge to decipher. IVIX’s NEXUS solution sheds light on these complex landscapes, going beyond standard database aggregators to give tax authorities visibility into multijurisdictional business practices. IVIX’s NEXUS solution automatically identifies foreign corporations with activities that suggest a "permanent establishment" within a specific jurisdiction, locating "fixed places of business" through the identification of physical premises and the activities of employees or agents representing the corporation. IVIX then leverages advanced algorithms to conduct an in-depth analysis that produces comprehensive reports detailing the tax liability implications for these foreign entities.

By providing visibility into tax obligations stemming from a "permanent establishment," IVIX enables a clearer understanding of a corporation's tax dues within a specific tax jurisdiction, providing insights such as the number of employees, their roles, and the business's segmentation across various functions such as marketing and development, both locally and abroad. IVIX also enhances enforcement related to "transfer prices" in international transactions among related entities, identifying undisclosed relationships that could indicate profit shifting to tax havens—a common tax evasion tactic.

IVIX’s NEXUS solution:

• Drills down into nuanced elements like transfer pricing, bringing out intricate details of cross-border transactions and their implications.
• Casts a spotlight on offshoring practices, drawing out the benefits corporations seek and any associated noncompliance.
• Illuminates issues surrounding permanent establishments, ensuring corporations are accurately taxed where they create value.
• Scrutinizes Nexus thresholds and activities, ensuring clarity in tax liabilities across states and countries.
• Offers comprehensive overviews that go beyond mere numbers, interpreting corporate stories and their tax narratives in every jurisdiction.

​​​​This suite of tools and analyses empowers tax authorities to enforce tax laws more effectively, ensuring that multinational corporations fulfill their tax obligations accurately and transparently.

The Influencers market consists of individuals who promote businesses on their social media platforms, often generating substantial income in the process. Influencer marketing has recently surged in value, reaching a staggering USD 21.1 Billion in 2023 (a 28.7% increase over 2022). Tax authorities worldwide recognize the potential revenue implications of influencer earnings. IVIX’s Social Media Influencers solution provides tax authorities with a comprehensive view of the Influencers market, enabling them to enhance tax compliance by delivering:

• A curated list of influencers operating within specific jurisdictions.
• In-depth influencer profiles, including essential identification details.
• Precise revenue estimations, allowing tax authorities to gauge potential tax liabilities.
• Actionable insights into influencer reach and impact.
• A list of posts labeled as "marketing" or "advertising" for transparency and compliance assessment.

​​​​​​By leveraging OSINT, AI, and specialized algorithms, IVIX’s Social Media Influencers solution delivers complete visibility into revenue generating activities, enabling tax authorities to identify and prioritize high-impact cases.

While the many markets flourishing in the digital economy possess sizable digital footprints, the construction industry is frequently characterized by non-digitized transactions that may obscure business activities and revenue. This is also true of many cash-based businesses. IVIX has developed off-the-shelf solutions for each of these market segments. IVIX’s technology scans a variety of publicly available data in order to bridge the gap between physical projects or transactions and digital compliance. Using the Construction Sector as an example, IVIX’s solution:

• Tracks publicly available business activity data and projects information from web platforms specific to the construction sector.
• Integrates insights from other public data, where contractors and construction firms often showcase their projects, clientele, and business engagements.
• Provides tax identification numbers and associated revenue data, connecting contractors to their fiscal responsibilities.
• Accesses and analyzes building permit databases to gain a comprehensive view of ongoing and completed projects, ensuring permit-associated revenues are accounted for.
• Offers evaluations of tax liabilities, creating a transparent ledger of all construction-related transactions.
• Provides metrics tailored for tax authorities, such as project volumes of contractors and project-specific tax compliance data.

​​​​​​IVIX Solutions for Construction Industry and Cash-Based Businesses provide transparency and visibility into business activities, enabling tax authorities to pinpoint and rectify noncompliance swiftly.