1. No ”Second Life” for fraudsters Danish Customs and Tax Administration’s presence in a parallel world Rikke Madsen

2. No ”Second Life” for fraudster Side 2 Tuesday, 21 June 2016 What is Second Life Privately owned internet-based 3D virtual world Launched June 23, 2003 Came to international attention via mainstream news media in late 2006 Constructed and maintained by users Provides an advanced level of a social network service Residents can explore, meet other residents, socialize, participate in individual and group activities, and create and trade items and services with one another Internal currency called the "Linden Dollar" (L$) 1 US$ = 265 L$

3. No ”Second Life” for fraudster Side 3 Tuesday, 21 June 2016 Why SKAT entered Second Life Second Life became rather popular at the end of 2006 International stories of people who have earned a lot of money in Second Life Question: is income from Second Life taxable? SKAT: Could it be “fun” to establish SKAT in Second Life...? SKAT was the first Danish authority in Second Life - and among the first Danish companies Media attention

4. No ”Second Life” for fraudster Side 4 Tuesday, 21 June 2016 SKAT in Second Life - I Bought an island – Danmark Built a small town with typically Danish and recognizable symbols Focused on 2 approaches: information and “adventure” Information on Real Life campaigns against tax fraud General information on tax and customs Design of t-shirt Several locations on the island offer moonlighting If one accepts the offer -> prison SKATs presence generated intense and positive media attention

5. No ”Second Life” for fraudster Side 5 Tuesday, 21 June 2016 SKAT in Second Life - II Almost no interest in Second Life end-2007 Should we stay - or should we go? The presence should be used to analyze the possibilities and limitations in relation to the presence in a virtual world as an authority Important to find out who the users are and why they are there Get others to help maintain the island Analysis completed in August 2008

6. No ”Second Life” for fraudster Side 6 Tuesday, 21 June 2016 Typical user...?

7. No ”Second Life” for fraudster Second Life - facts 15,000,000 registered users worldwide 1,200,000 logged in during the last 2 months Approximately 500,000 active users Between 15,000 and 60,000 members online simultaneously Number of active users has dropped by 30% since mid-2007 Approximately 5,000 Danish users Side 7 Tuesday, 21 June 2016

8. No ”Second Life” for fraudster Side 8 Tuesday, 21 June 2016 Users Users are very different Age from 18 to 54 years. Average: 35 (no pensioners) High proportion of highly educated – all kinds of jobs and income Fluent in English Slightly more men than women Active in Second Life less than 6 months 50%: less than 2 hours/day. 10%: More than 40 hours/week Experience excitement, creativity, fun and socialization across borders Uses Second Life to forget Real Life problems

9. No ”Second Life” for fraudster Requirements and challenges for SKAT The number of Danish users does not justify a presence, unless users would be a group that could not be reach otherwise Users are good at using the Internet. SKATs Website offers more than Second Life can (e.g. personal information) The technical, virtual and resource requirements for SKATs presence are great. Current platform is inadequate Users justification for the use of Second Life is not a need for information. August: 33 visitors in the house – 240 visitors on the island No savings No interest from the media in Second Life Side 9 Tuesday, 21 June 2016

10. No ”Second Life” for fraudster Conclusions Second Life can only bee seen as a supplement - not a substitute for existing guidance channels There are better and more inexpensive ways to target the users than through Second Life No regrets Side 10 Tuesday, 21 June 2016