Tax data analysis with secure computing. Dan Bogdanov, PhD Head of the Department of Privacy Technologies
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1 Tax data analysis with secure computing Dan Bogdanov, PhD Head of the Department of Privacy Technologies
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3 Tax revenue Tax records for people and companies
4 Re-using tax records for data-driven policymaking 4
5 Quick intro: Sharemind secure computing system Confidential data Analyze without ever seeing the data New knowledge Privacy controls for third parties Sharemind goes beyond data protection requirements. Data owners encrypt data on-site and upload to Sharemind. Data analysts build and run queries without accessing the data. Sharemind processes the queries without removing the protection. Authorized users receive query results in an encrypted format.
6 Project completed in 2015 using Sharemind Collaboration of Cybernetica, Estonian Centre for Applied Research, Estonian Tax and Customs Board, Ministry of Education, Estonian Information System Authority Data Protection Authority statement suggested no personal data was processed (as long as results do not identify an individual) Case study published at the Privacy Enhancing Technology Symposium Runner up for the 2017 Caspar Bowden award for Outstanding Research in Privacy-Enhancing Technologies Mentioned in the report The Promise of Evidence-Based Policymaking from the United States Commission on Evidence-Based Policymaking
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8 Data about taxes paid
9 Data about taxes paid Missing data on taxes notpaid
10 Matching business transactions to find undeclared ones Companies VAT declaration (encrypted) Sharemind-based risk analysis system matches encrypted declarations without decrypting them and finds companies with a risk of VAT fraud Risk analysis queries Risk scores Tax and Customs Board Confidentiality of honest taxpayers is guaranteed from both internal leaks and external attacks. There is no single party who can decrypt data and, thus, break privacy. Control is distributed among parties. 10
11 Prototype completed in 2015 using Sharemind Collaboration of Cybernetica, Estonian Tax and Customs Board, European Commission Framework Programme 7 project PRACTICE (Privacy-Preserving Computation in the Cloud, FP7-ICT ) Cybernetica built the pilot in parallel with building the actual transaction collection and aggregation system Case study published at the Financial Cryptography and Data Security conference Sharemind was called fairytaletechnology by the Director General of the Tax and Customs Board This project had several interesting follow-ups, we ll talk about one now
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13 Private sector companies Local governments Taxes Welfare Education
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20 Pilot built in 2016 using Sharemind Custom Sharemind application builtfor an undisclosed European customer(project notconcluded yet) Raisedseveralissueson privacyvs usability analysts are used to having total control over the data
21 References Taxand educationdatalinkageproject Overview with video: Research paper: VAT fraud detection project Overview: Researchpaper: Costanalysisfora clouddeployment:
22 More information Sharemind webpage: Followuson As of September 2017, Sharemind s development is now supported by thehorizon2020 Smalland MediumEnterpriseInstrument This project has received funding from the European Union s Horizon 2020 research and innovation programmeunder grant agreement No Stockphotosin thispresentationfromdreamstimeunderlicense Figures from Dan Bogdanov, drawings byalisa Pankova
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