English

An algorithmic approach to handle circular trading in commercial taxing system

Data Structures and Algorithms 2017-11-07 v2

Abstract

Tax manipulation comes in a variety of forms with different motivations and of varying complexities. In this paper, we deal with a specific technique used by tax-evaders known as circular trading. In particular, we define algorithms for the detection and analysis of circular trade. To achieve this, we have modelled the whole system as a directed graph with the actors being vertices and the transactions among them as directed edges. We illustrate the results obtained after running the proposed algorithm on the commercial tax dataset of the government of Telangana, India, which contains the transaction details of a set of participants involved in a known circular trade.

Keywords

Cite

@article{arxiv.1710.10836,
  title  = {An algorithmic approach to handle circular trading in commercial taxing system},
  author = {Jithin Mathews and Priya Mehta and S. V. Kasi Visweswara Rao and Ch. Sobhan Babu},
  journal= {arXiv preprint arXiv:1710.10836},
  year   = {2017}
}

Comments

10 pages, 7 figures, 1 table, 3 algorithms