Automated Tax Liability System Using NLP Conceptual Representation

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Solution Overview

Problem

Current systems for determining tax liabilities across multiple jurisdictions are cumbersome, prone to errors, and require extensive manual effort due to the complexity of diverse tax laws and regulations, as well as limitations in data processing and security.

Innovation Solution

A hardware system comprising a server and database arrangement that performs natural language processing to generate conceptual representations of tax-related information, accesses and analyzes knowledge-based and regulation-based data from multiple jurisdictions to accurately determine tax liabilities, reducing errors and inaccuracies.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If manual calculation by expert tax professionals is used, then tax liability can be determined, but the process is lengthy, cumbersome and prone to errors

Engineering Contradiction:

Improveaccuracy of tax liability determinationVSAvoidtime required for manual calculation

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The patent replaces the manual mechanical calculation process performed by tax professionals with an automated computer-based system that processes tax data electronically. The system uses software algorithms to automatically calculate tax liabilities across multiple jurisdictions, eliminating the need for manual computation while improving both speed and accuracy.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent enables entities to自行 determine their own tax liabilities through automated software tools without requiring expert tax professionals. The system provides self-service capabilities where users can input their data and receive automated tax calculations, reducing dependency on manual expert intervention.

Inventive Principle:

Principle #25Self-service

2Productivity

If tax related tools are employed, then tax liability determination is automated, but the tools are configured for single tax jurisdiction only and require substantial review

Engineering Contradiction:

Improveautomation of tax liability determinationVSAvoidcapability to handle multiple tax jurisdictions

Core Design Contradiction:

ProductivityVSAdaptability or versatility

Solution Approach 1:

The patent creates a universal tax determination system that can handle multiple tax jurisdictions simultaneously. The software is designed with multi-functionality to process tax data for different countries and regions, applying various tax laws and regulations within a single integrated platform, thereby eliminating the limitation of single-jurisdiction tools.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent segments the complex multi-jurisdictional tax determination process into manageable components, with each component handling specific aspects of tax calculation for different jurisdictions. The system divides tax data into relevant segments and processes them through appropriate calculation modules, making the complex task of handling multiple jurisdictions systematic and efficient.

Inventive Principle:

Principle #1Segmentation

3Measurement precision

If expert professionals are employed, then tax liability can be determined with some accuracy, but their knowledge is limited to only a few tax jurisdictions

Engineering Contradiction:

Improveaccuracy of tax liability determinationVSAvoidknowledge coverage across tax jurisdictions

Core Design Contradiction:

Measurement precisionVSAdaptability or versatility

Solution Approach 1:

The patent replaces the limited human knowledge base of tax professionals with an extensive digital database containing tax laws, regulations, and calculation rules for numerous jurisdictions. The system electronically stores and processes this comprehensive knowledge, eliminating the constraint of individual expert knowledge limitations.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent performs preliminary action by pre-loading the system with extensive tax knowledge and regulations for multiple jurisdictions before actual tax calculations are performed. The software is pre-configured with tax laws, rates, and rules for various countries and regions, enabling it to handle diverse jurisdictional requirements without requiring experts to have prior knowledge of each jurisdiction.

Inventive Principle:

Principle #10Preliminary action

Data Source

PatentUS11983780B2System and method of determining tax liability of entity

Publication Date: 2024.05.14 EY GMBH & CO KG WIRTSCHAFTSPRÜFUNGSGESELLSCHAFT

AI summary

Disclosed is system that determines tax liability of entity. The system comprises server arrangement and database arrangement coupled in communication with server arrangement. The server arrangement is configured to: (a) obtain information pertaining to entity; (b) perform natural language processing on the information to generate conceptual representation; (c) determine at least two tax jurisdictions towards which entity has tax liability; (d) access, from database arrangement, knowledge-based information and/or regulation-based information pertaining to tax for at least two tax jurisdictions and analyse the knowledge-based information and/or the regulation-based information to generate conceptual representation of knowledge-based and/or regulation-based information for at least two tax jurisdictions; and (e) analyse conceptual representation of the information, based upon conceptual representation of knowledge-based and/or regulation-based information, to determine tax liability of entity towards at least two tax jurisdictions, wherein server arrangement, by analysing conceptual representation of the information, reduces errors or inaccuracies present in the information.