Leveraging AI, Big Data, and Cloud Computing for Enhanced Tax Compliance, Fraud Detection, and Fiscal Impact Analysis in Government Financial Management

Vamsee Pamisetty

Abstract: The continuous increase of international trade plays an increasingly greater role in boosting global economic growth, productivity, trade and investment. Emerging and developing economies, especially, have successfully participated in this process, thus making significant social progress and economic growth. With the extensive development of information technologies and electronic data interchange, traditional paper-based exchange modes have been unable to support modernization of the international trade. All countries know that the greatest economic benefits can only be reaped by proper restructuring of the international trading system based on on-line commerce. The subsequent implement of e-businesses requires the whole trading system be reformulated. This can only be achieved through the establishment of a single-window mechanism, thus guaranteeing more efficient customs clearances with better control in compliance with international standards and gradual adaptation to changing consequences of trade driven by globalization in good faith. With the increasing growth of international trade, the volumes of trade transactions thus generated are also increasing at an explosive rate. Efficient customs clearance plays an important role in the modernization of the international trading system, so that it is important to take full advantage of the latest information technologies to digitize the existing paper-based processes. In modernized procedures, electronic data, in digital forms, could be successfully exchanged among the trading partners thereby replacing the paper-based documents. With the advancements of information and network technologies, electronic data interchange is emerging as the means to conduct trading businesses on-line. As trading precedes verifying practices and thus dealing with considerable uncertainties stemming from it, however, electronic data interchange cannot completely replace traditional trading processing practices. Without being formally specified, internationally accepted trading standards cannot be directly utilized in electronic data interchange. Failure in any of the steps thus taken inappropriately can dramatically increase the chances of cross-border crimes, harm to safety and unfriendly competitions, as a number of recent incidents have shown, thereby causing considerable damages in loss of lives and properties. The resulting complexity of existing laws and regulations about international trading becomes a major obstacle to cross-border trades conducted in good faith. Despite the global necessity, nevertheless, little success has been achieved on understanding, harmonizing and standardizing such trading laws and regulations. E-Government is being used to describe strategies and policies of governments to use and implement information and communication technology. Common characteristics of e-Government are, but not limited to, government on-line services and administrative works via Internet, using internal networks to manage administrative information and exchanging it with organizations, and the application of information and communication technology to collect public opinions. It is well known that cloud computing has emerged as a new computing paradigm. During the past few years, cloud computing has been widely used in many domains such as business, science applications, and ecommerce/businesses. Due to its usefulness, cloud computing is also believed to be a major enabler of e-Government. Nevertheless, few attempts have been made in this regard. This paper presents important research towards analyzing the core and primary elements of cloud computing, utilizing them to examine how cloud computing can be applied to benefit the e-Government. Six top sectors have been analyzed to examine the core and primary elements, and the results are in favor of the proposed framework MASC. It also exposes many interesting patterns related to e-Governance and highlights the true actors that are playing a vital role in the development, sustenance, and growth of e-Governance systems using cloud.

Keywords: AI, Big Data, Cloud Computing, Tax Compliance, Fraud Detection, Fiscal Impact Analysis, Government Financial Management, Data Analytics, Predictive Modeling, Digital Transformation, Risk Assessment, Automation, Real-time Monitoring, Public Sector Finance, Machine Learning