From today, April 1, 2019, the Income Tax Department of the country officially begins using big data analytics — jargon for virtually looking at taxpayers’ private information without their knowledge or consent — to look for tax evasion. It is the latest addition in the arsenal of the tax department, which, it claims, will be used to get taxes from people wherever it is due, even when income from different sources is not declared. Named ‘Project Insight’, the Rs1,000-crore programme involves tracking social networking profiles of people and checking their expenditure patterns through photographs and videos they upload on social media. Reports suggest the I-T department will be keeping an eye on purchases and travel expenses of people and checking whether these are disproportionate to their known sources of income. The tax department already has had access to the software since 15 March of this year.
The use of such technology is inevitable in an increasingly complex world, which depends greatly on the internet, and the devices enabled by it. With social engagements turning more to the virtual world with each passing day, gleaning information out of the internet will not be a difficult task. The use of technology also makes it easier to scale up operations but how that can be done without dependence on trained manpower and big expenditure is something that is to be observed. Then, there are examples of successes to be cited from countries such as Belgium, Canada, Britain and Australia. It is reported that Britain has been able to prevent the loss of about 4.1 billion pounds in revenue, that is, about Rs36,942 crore, since adopting the technology in 2010. However, the internal revenue departments of such countries have very many limitations on how far they can pry into an individual’s private activities. In India, however, the dependence on underpaid government officials cannot be understated. Eternally eager to earn a quick buck for personal gain, these government babus will have a merry time with excessive information on the lives of a limited number of tax payers. This country has not, ever, considered offering respect or attractions to the tax payer. To increase the tax base and generate extra revenue has not been a priority in this nation. India’s tax regime still operates in the old feudal colonial fashion. Any one visually having a good life must be heavily taxed is the norm. For example, those who do not travel abroad or do not make public their life style can still go scot free.
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The biggest difference between other countries and India is in the way the authorities function in this country. Honesty and integrity are not the hallmarks of Indian authorities across the board. The Income Tax department is no exception and is considered a ‘nemesis’ controlled by the powers that be to suit their requirements. It remains to be seen how big data analytics will be used in determining tax evasion. One way it could work is by creating the fear of being snooped on. With the department overtly declaring that it will be keeping watch on social media posts and such other content posted on websites and pages, it is clear that the officials of the department have the sanction to be prying into such information. The problem with the power being given to taxmen pertains to the distinct possibility of its misuse. It is not being clarified whether there are adequate deterrents in place if taxmen are discovered to be violating this snooping power. The doubt whether the government is also creating a system that keeps a lookout for bad elements within the department who may misuse their powers of accessing personal information of tax payers for illegal gains is ever present. Watching the tax watchdog becomes an important task, especially as they are being given a longer leash to operate. The misuse of social media is already rampant in India. The proliferation of fake news bears testimony to it. The country is also witnessing an increase in the number of internet and mobile services users, which means that the net for tax department to cast is only growing bigger with each passing day. Without adequate checks and balances to prevent misuse of big data analytics, the whole project could be extremely dangerous for the average law abiding tax-paying public. Too much power to government officials, most of whom are themselves suspects in matters of integrity, can only spell doom for strengthening a healthy and free democratic society.
