Theoretical Approach to Taxpayers’ Segmentation

Abstract

Current taxpayers’ segmentation is relatively limited and static. The existing segmentation problem, which is related to the taxpayers ‘behaviour, requires modern segmentation-analysis methods and models, which would evaluate the change of economic and psychographic taxpayers‘indicators. Purpose of the study: to provide conceptual taxpayers’ segmentation model, which allows to classify and analyse them according to the taxpayers’ behaviour and known legal facts. Research is based on analytical approach, there were invoked a systemic, logical and comparative analysis of scientific literature. Findings: the knowledge about the specific behaviour of the taxpayers‘ segment groups (tax compliance/ enforced tax obligations) would enable us to determine the main impacting factors. Better comprehension of the taxpayers‘ and their executives (decision-makers) behaviour would allow to enhance administrative institutions' abilities in analytics and to determine the unknown yet connections and phenomenons between separate taxpayers in the context of effectual law basis. Clearer taxpayers‘ identification by segment groups and behaviour risk factors, which are specific to separate groups, will enable faster determination of outliers as well as newly forming potential risks. Dynamic changes between separate groups or in them will form preconditions for timely implemention of taxpayers‘ monitoring and control tools for reaching a positive change in the behaviour of taxpayers.

Towards a new approach to maximize tax collection using machine learning algorithms

“…This process can inform targeted tax enforcement strategies and improve the efficiency and effectiveness of tax collection. Previous research on taxpayer segmentation [11] has focused on a variety of factors, such as demographic characteristics, tax compliance behaviors, and economic indicators, and has used various methods, including statistical analysis and machine learning.…”

“…Other studies have also examined taxpayer segmentation as a strategy to enhance tax debt collection. A study by Stankevicius et al [11] Related to segmenting taxpayers, recent studies like Tymchenko et al [12], and Fox et al [13], suggests that there are a variety of factors that can be used to segment taxpayers into different groups, including risk of noncompliance, compliance motivation, and perception of fairness. Other recent studies, such the one conducted by Vasco et al [14] used data mining techniques to study the Spanish Personal Income Tax sample designed by the Institute for Fiscal Studies.…”

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