SKAT wanted one strategic partner to provide all their business intelligence solutions. The partnership with Affecto ensures them the information and support in a perspective that goes way beyond the one single BI-project.

Challenge: Becoming a Service Organisation

In 2005, all legislation, administration and collection of taxes, VAT, etc. in Denmark came under one authority called, SKAT. SKAT handles everything in relation to taxes, labour market contributions, tax assessment of property, VAT, duties, customs duty, and collection of debts to the public authorities.

The mergers with other public institutions and shifting IT trends have resulted in an IT infrastructure characterized by a large number of both integrated and distributed systems, in combination with more modern standard systems.

SKAT is a long term user of Business Objects tools. In 1993, SKAT introduced Business Objects version 2, and Business Objects has played an increasingly important role in the controlling tax affairs of companies.

The tax controllers use Business Objects to prepare their inspection and control visits. Business Objects is playing a crucial role for the employees that visit companies. If a third of all black market labour could be moved back to the normal labour market – and research indicates that this is possible – an additional 40,000 full-time jobs would be created.

If all tax evasion was stopped, public revenue could increase by DKK 15-20 billion. (Source: The Rockwool Foundation Research Unit.)



Targeted Inspections and Communication

The main use for business intelligence in SKAT is still to enable and facilitate inspection visits.

Business Objects tools are used to prepare and conduct these control visits. By running Business Objects reports, the controllers are not depending on fixed views which have pre-defined in legacy systems.

With Business Objects, controllers are able to run queries across multiple and otherwise siloed systems running on both legacy and modern standard systems to extract the required data and get relevant and adequate picture of the company in question.

By utilizing and drilling down through the available data, SKAT is able to offer better and more targeted service to companies. It is, for instance, not relevant for all companies to be made aware of changes in taxation on something like chocolate. In the past, SKAT had to widely broadcast announcements of changes because it was not possible to target the right users.

With the improved communication that results from better insight, SKAT is increasingly being perceived as a service organization, supporting businesses, rather than the simply a nuisance. The intelligent use of data enabled by Business Objects makes sure that letters from SKAT are relevant to the receivers.

By using Business Objects XI, SKAT is able to support the ministry of taxation with accurate and detailed analyses of the consequences of adjustments of any given tax or duty.

ResultsFrom Operational to Strategic Business Intelligence

Business Intelligence is still used as an operational tool, however, with the increasingly advanced facilities in the Business Objects platform, SKAT is able to move the use of business intelligence to an increasingly strategic level.

SKAT is able to use control resources more efficiently. By analyzing the large amounts of data, SKAT can target the businesses and industries with the highest probability of irregularities.

SKAT has developed a system that categorises companies. For a company i.e. that has always been reporting duty and taxs on time and suddenly starts to be late, the system will highlight a potential issue.

On the internal front in SKAT, IT Services is using business intelligence to spearhead the development of intelligent tax collection. “It is our job to show what can be achieved with the available technology. By doing this, we are helping to drive the business forward. In a way we are the catalyst between the people with the business responsibilities and those responsible for IT production”, says Jørgen Fischer Walldorf.

Affecto and the SKAT Solution

Component Software has a long term partnership with SKAT which began back in 1998, when SKAT selected Affecto to deliver and assist with implementation of the Data Warehouse and Business Intelligence solution.

Through the years, Affecto has played various consultancy roles in the deployment of the SKAT solution, such as:

  • Development and implementation of Business Objects universes and reports within the SKAT Business Intelligence solution.
  • Best practices for development of ETL processes.
  • Definition of next generation Enterprise Data Warehouse Architecture.
  • Information services for an Enterprise SOA initiative.
  • Framework for development of WebServices on top of Data Warehouse data.

“We wanted one strategic partner to provide all our BI-solutions. Affecto proved through their first assignment – delivering the Data Warehouse infrastructure (ETL) – that they had the experience and the knowledge to be that strategic partner. The partnership with Affecto ensures us the information and support in a perspective that goes way beyond the one single BI-project. This is what I expect from the partnership and so far my expectations have been met”, says Jørgen Fischer Walldorf Project Manager IT Services, SKAT.