Using Data Envelopment Analysis to Ranking ICMS’s Taxpayers

This study presents a practical methodology developed in the R software language, which makes use of Data Envelopment Analysis, in the Constant Returns of Scale model, to measure the tax collection efficiency of the ICMS taxpayers (Brazilian tax on commercial operations related to the movement of goods and interstate and inter-municipal transportation and communication services), using as input the component variables of the tax calculation function found in the amounts recorded in the Electronic Invoices (purchases and sales) and in billing obtained with sales made with Card (credit and debit mode). The data corresponding to a fiscal year are obtained in the databases of the Brazilian revenue agencies, tabulated and submitted to the DEA calculation (multipliers and the envelope models). Thus, in a process of monitoring taxpayers belonging to the same economic sector, the lower relative efficiency performances of the companies will raise suspicion and serve to identify those that deserve to be audited (fiscal audit). Two examples of application of the explained methodology are demonstrated (Department Stores sector and Retailing of Footwear sector), where it is possible to observe its positive results in the identification of the taxpayers with low efficiency in the tax collection and eligibility for the inspection action. Currently the methodology is in use in the Federal District Revenue (Brazil) as an instrument for selecting companies for auditing.