A multi-agency state pilot program started in 2013 to combat tax evasion within California’s underground economy has helped identify and investigate more than $60 million in potentially lost revenue, a Board of Equalization official said this week.
Randy Silva, chief of BOE’s Investigations and Special Operations Division, reported on Jan. 26 to the board that one of the broader objectives of the Revenue Recovery and Collaborative Enforcement (RRCE) Act established by AB 576 was to take a broader look at how data could be used to coordinate outreach, audits and enforcement.
The pilot project’s core participants — the Board of Equalization, the Franchise Tax Board, the Department of Industrial Relations and the California Department of Justice — have worked together to plan a proof of concept for a data analytics platform.
“All the agencies have gotten together and agreed on a proof of concept, and really we just have to sign an interagency MOU once there’s available funding,” Silva said.
The Tax Recovery and Criminal Enforcement task force (TRaCE) has received more than 230 complaints of possible criminal activity, Silva said, and the state has consequently already successfully prosecuted cases such as pirated DVDs, counterfeit apparel and illegal slot machines.
The public can report criminal tax evasion, piracy, counterfeiting, human trafficking and other crimes to the TRaCE task force through an online intake system, or via mail or phone.
