# TED: Related Party Transaction guided Tax Evasion Detection on Heterogeneous Graph

arXiv: https://arxiv.org/abs/2605.26984 · HTML: https://mlsanity.com/paper/2605.26984/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 18 of its 52 references that are in the map.
- First posted on arXiv 26 May 2026.

## Builds on (most cited first, 18 of 18)

- [Adam: A Method for Stochastic Optimization](https://mlsanity.com/paper/1412.6980/) (2014)
- [Semi-Supervised Classification with Graph Convolutional Networks](https://mlsanity.com/paper/1609.02907/) (2016)
- [Graph Attention Networks](https://mlsanity.com/paper/1710.10903/) (2017)
- [Inductive Representation Learning on Large Graphs](https://mlsanity.com/paper/1706.02216/) (2017)
- [Convolutional Neural Networks on Graphs with Fast Localized Spectral Filtering](https://mlsanity.com/paper/1606.09375/) (2016)
- [Modeling Relational Data with Graph Convolutional Networks](https://mlsanity.com/paper/1703.06103/) (2017)
- [Embedding Entities and Relations for Learning and Inference in Knowledge Bases](https://mlsanity.com/paper/1412.6575/) (2014)
- [Complex Embeddings for Simple Link Prediction](https://mlsanity.com/paper/1606.06357/) (2016)
- [Heterogeneous Graph Attention Network](https://mlsanity.com/paper/1903.07293/) (2019)
- [Convolutional 2D Knowledge Graph Embeddings](https://mlsanity.com/paper/1707.01476/) (2017)
- [Heterogeneous Graph Transformer](https://mlsanity.com/paper/2003.01332/) (2020)
- [MAGNN: Metapath Aggregated Graph Neural Network for Heterogeneous Graph Embedding](https://mlsanity.com/paper/2002.01680/) (2020)
- [PTE: Predictive Text Embedding through Large-scale Heterogeneous Text Networks](https://mlsanity.com/paper/1508.00200/) (2015)
- [CLDG: Contrastive Learning on Dynamic Graphs](https://mlsanity.com/paper/2412.14451/) (2024)
- [Revisiting Graph Contrastive Learning on Anomaly Detection: A Structural Imbalance Perspective](https://mlsanity.com/paper/2507.14677/) (2025)
- [TaxThemis: Interactive Mining and Exploration of Suspicious Tax Evasion Group](https://mlsanity.com/paper/2009.03179/) (2020)
- [Tax Evasion Risk Management Using a Hybrid Unsupervised Outlier Detection Method](https://mlsanity.com/paper/2103.01033/) (2021)
- [Out-of-Distribution Generalization on Graphs via Progressive Inference](https://mlsanity.com/paper/2503.02988/) (2025)

## Abstract (arXiv)

Tax evasion causes severe losses of government revenues and disturbs the economic order of fair competition. To help alleviate this problem, the latest tax evasion detection solutions utilize expert knowledge to extract features and then train classifiers to determine whether a company is suspected of tax evasion. However, existing solutions mainly focus on the statistical features of the company, but fail to exploit the rich interactive information in tax scenarios, which affect the detection performance. In this paper, we first model the tax scenario as a heterogeneous graph and study the tax evasion detection problem under the heterogeneous graph model. To improve the performance of tax evasion detection, a novel graph neural network model is proposed to extract the comprehensive information of heterogeneous graphs. Specifically, we use heterogeneous and complex related party transaction groups to filter low-level noise information. Moreover, a hierarchical attention mechanism is designed to capture the deeper structure and semantic information hidden in the related party transaction group. We apply our method to the real risk management system of the tax bureau, and evaluate it on two human-labeled real-world tax datasets. The results demonstrate that our method significantly outperforms the state-of-the-art in the tax evasion detection task.