In previous blogs I wrote about using data analysis to draw conclusions regarding the effectiveness of a Tax Control Framework (TCF) and how to establish a successful collaboration between TCF for VAT and data analysis.
But what is the role of the statistical sample in all this?
A statistical sample can be the starting point for developing a well functioning TCF for VAT. It can serve as a baseline measurement to examine the quality of the organization. Based on the identified errors the following can then be done:
– What is the maximal impact (€) of the identified errors?
– Do the identified errors indicate that the organization is failing to achieve its objectives? In other words, does the error exceed the risk or savings appetite of an organization?
– Are the errors incidental of structural? Additional data analyses can be executed to this end.
A prerequisite for all this is that it is predetermined what an error is. Compare this to the fail condition of a control that I explained in my previous blog.
The sample is then an efficient and effective starting point to either achieve or improve the indirect tax control framework.
In addition, the tax authorities in The Netherlands use the statistical sample as a means to monitor the effectiveness of TCF. If you have a TCF, performing a statistical sample based on the methodology used by the tax authorities offers advantages in the communication and work relation with the authorities.
Does the application of the statistical sample fit with achieving your objectives?
- How Internal Audit could contribute value in realizing indirect tax objectives? (richardcornelisse.com)
- VAT Control Framework (indirecttaxtechnology.com)
- The KEY Group measures Indirect Tax Performance and improves where necessary (richardcornelisse.com)
- Statistical Review: Small Sample (theavfcjournal.com)
- How to present a data analysis in a dissertation (llatech.com)
- VAT Control Framework (richardcornelisse.com)
- Excel Statistics for SEO and Data Analysis (moz.com)
- 5 Ways to Avoid Being Fooled By Statistics (iacquire.com)
- Statistics One – Introduction (immatortoise.wordpress.com)