HMRC plans predictive analytics system to spot insolvency risks
8th July 2016
HMRC have recently issued a tender to find IT specialists to assist them in the development of a predictive analytics solution for identifying and managing insolvency risk. It will come as no surprise to anyone to realise that distressed companies often owe substantial sums to the taxman. The government is continuing its crusade to provide HMRC with the tools to bring in the maximum amount of tax owed to the Exchequer; bear down on avoidance and evasion; and transform tax and payments for taxpayers.
To assist HMRC to collect the tax owed, they are seeking support from an external partner for the development of a predictive analytics solution that will alert them to emerging insolvency risk. The solution will integrate with and exploit HMRC’s existing IT infrastructure and analytic capability. The external partner must have highly relevant experience of modelling insolvency risk, for example from working on projects of a similar scale for other tax administrations, major retail banks, telecommunication or utility companies.
The tender document suggests a proposed one-year contract with an anticipated value of between £2m to £5m. The solution is expected to include application software programming services, financial information systems, as well as data analysis and consultancy functions. The contract is intended to come into effect from January 3, and run throughout 2017.
Source : Tenders Electronic Daily