At the core of MS 16 is research team, which aims to provide subsidiaries with world-class research and knowledge to support companies in MS 16 group. At the request of Tax Robot, MS 16 research team conducted case law analysis and helped to improve tax robot code which evaluates risks.
The research team identified lack of quantitative evidence to support the values in risk framework. To fill the gap, upwards to 3000 cases of tax disputes between undertakings and tax authorities were collected and organized. In cooperation with leading Latvian universities, 14 students prepared and uploaded case law in a software specially built for this project. This software categorizes the case law, provides information on date, time, result and content of the case law.
The result provided Tax Robot team with a set of new risks that compliments Tax Robot’s automatized risk manager. However, the most critical finding was exact weight of each risk, improving the accuracy of the program. Tax Robot team no posses risk framework that more refined than anything on the market at the moment.
It provides customers with information, such as the statistical probability of positive result in case of litigation. This information combined with the value and frequency of transaction can give risk score based on thousand’s of the similar situation, already litigated.