Supervised data mining in the fight against fraud

As part of the forthcoming programme law, the De Wever government intends to take a new step in the fight against tax fraud. The approach is clear: use data intelligence to make tax audits more effective, while protecting taxpayers’ rights.

A three-pronged strategy:

1.         Advanced data mining

2.         Extension of the Central Point of Contact (CPC)

3.         Graduated intervention procedure to limit abuse

The aim is to detect asset or financial inconsistencies more quickly and trigger better-targeted controls, while guaranteeing proportionate use of the tools.

The CPC, housed at the NBB, has been centralising banking and financial data (accounts, investment contracts, balances, etc.) since 2011. The reform provides for a significant expansion of the scope, with the gradual integration of :

– Securities accounts

– Accounts linked to crypto-assets

– Online gaming accounts (if over €10,000)

– Foreign financial data from automatic exchanges

– And potentially, other types of data to be defined

This development is the result of a political consensus, particularly at the request of the “Vooruit” party.

Datamining is based on the automated cross-referencing of databases via the FPS Finance datawarehouse. Specialised civil servants, appointed by the Finance Minister, process the data pseudonymously, on the basis of clearly documented projects validated at two levels: the technical department and the security/privacy unit.

At this stage, no tax inspector has access to the names: only ‘risk profiles’ are established anonymously.

If a ‘flashing light’ is detected (for example, a change in assets that is inconsistent with declared income), the taxpayer’s name is forwarded to the inspection services, along with a general reason (never an automated suspicion of fraud). A standard tax audit can then be launched, in accordance with the usual rules.

At the “MR” party request, a tiered procedure has been incorporated. This involves first requesting information from the taxpayer and then, if there are serious doubts, consulting the CPC. This barrier prevents widespread or abusive monitoring, particularly of the self-employed or taxpayers paying actual expenses.

This reform marks a move towards more intelligent, data-driven taxation, but within a framework of clear safeguards. The aim is to strike a balance between efficiency for the State and legal certainty for taxpayers.