Transcript: Tax Fraud Prevention: Receipt Tells the Truth

Introduction to Data Tech International and TaxCore
With a TaxCore solution, the government is placed in charge through the efficient and secure monitoring of all transactions. The system signs and encrypts data at the moment of sale, ensuring it can only be decrypted by the tax authority. This creates a "single point of truth" where the taxpayer, the customer, and the authority share the same view of the data instantly.

Data Tech International (DTI) is a regulation technology company specialized in software catered to tax authorities. Founded by Mr. Goran Todorov, the company provides turnkey solutions to bridge the gap between evolving digital businesses—like Uber and Amazon—and tax administrations that are often lagging behind in the computer evolution.

Goran Todorov’s Journey: From Student to Pioneer
Goran's path began in 2003 upon returning to Serbia from the United States. Having worked various student jobs—from hospitality and construction to car and fireworks sales—he spent significant time behind cash registers. During those days, he noticed a common "dose of scheming" where taxpayers would collect indirect taxes from customers but fail to submit the full amount to the government, often using that money to pay their own bills or invest.

Recognizing that this was unfair to the government, dishonest to the customers, and created an uneven playing field for honest businesses, Goran used his background in computer science to improve the primitive "fiscalization" methods of the time. By 2007, he was consulting for the Ethiopian Revenue and Customs Authority, eventually realizing that governments worldwide needed a sophisticated, non-disruptive way to monitor transactions without interrupting business continuity.

How TaxCore Works: Security and Transparency
TaxCore adds a security layer to any device used to produce an invoice—be it a phone, a computer, an ERP system, or a traditional Point of Sale (POS). It utilizes a Security Module that signs and encrypts data at the moment of sale.

Near Real-Time Submission: While encryption happens instantly, data submission can be "near real-time" to accommodate areas with poor internet connectivity.
Customer Involvement: Customers are incentivized to verify invoices via their phones. By scanning a QR code, they anonymously submit data to the authority, acting as a secondary verification layer.
Tamper-Proof Records: Once an invoice is created, it receives a digital stamp. It cannot be modified or deleted, preventing the use of "Zappers" or "Phantomware" (software used to falsify accounting records).
Case Study: Fiji’s Success
Fiji became the first country to implement the off-the-shelf TaxCore system. Interestingly, Fiji reduced its tax rates before implementation, which was welcomed by the business community. Despite the lower rates, the country collected more revenue because the technology ensured proper collection of existing taxes.

Goran notes that the system is "cyclone-proof." During a major cyclone in Fiji that caused a blackout at the national data center, businesses continued to operate and record sales offline using their local secure elements. When the data center was restored days later, all data was reconciled with zero losses.

Global Impact and Technical Resilience
The interview highlights several key benefits for different regions:

Samoa: Despite political changes and COVID-19 border closures, the Samoa Revenue Authority maintained the system (known locally as TIMS) because they saw a massive increase in voluntary compliance.
United States: In Washington State, the system was used as a "probation" tool for businesses caught using electronic sales suppression. These businesses were allowed to keep their licenses only if they agreed to use electronic monitoring.
Europe and Africa: DTI has a presence across these continents, advocating for a shift from paper to a digital trail—a concept Goran and Professor Richard Ainsworth described as "VAT in the Digital Age" as far back as 2013.
The Future: AI and Digital Fingerprints
Looking ahead, TaxCore is already integrating Machine Learning to detect anomalies and predict fraud trends. However, Goran emphasizes that AI is only as good as the data it receives. The core value of TaxCore lies in the "digital fingerprint" it creates for every taxpayer.

By establishing a trusted, traceable chain of information from a specific sales point and an authorized person, TaxCore provides the foundation for true digitalization. Goran concludes that while he remains a technology provider, his goal is to serve as a "peacemaker" between the government's need for revenue and the taxpayer's effort to comply, fueled by transparency, efficiency, and fairness.