Tax compliance system using a national digital ID

Senegal loses 526.4 billion FCFA each year to tax evasion, equivalent to 3.4% of GDP. Most businesses operate informally, and only 6.5% register under the National Identification Number for Companies and Associations (NINEA). Weak enforcement and poor taxpayer verification allow fraud and reduce public investments.

This use case proposes a system that integrates the national digital ID with the NINEA taxpayer system and the financial database. The system mandates biometric verification using digital IDs to confirm business owners and prevent duplicate or fraudulent identities.

The system verifies taxpayers in real time and supports AI-based audits to detect false declarations. It allows secure data-sharing between tax authorities, banks, customs, and registries. The integration of digital payments and electronic invoicing ensures transaction traceability.