The Kentucky Department of Revenue is working to improve tobacco excise tax collections by revamping its tobacco tax system. As part of a five year contract, Xerox (NYSE: XRX) will replace the manual, paper-based process with an electronic tax system that will detect potential tax fraud and make it easier to track illegal cigarette smuggling. The implementation of Xerox’s new tax system will include licensing, surety processing, tax stamp ordering, inventory controls, electronic reporting, tax return processing, collection/payments processing, desk and field audits, and the tracking of shipments at the invoice level. “By streamlining current manual processes, the Kentucky Department of Revenue can eliminate additional operational costs, while working to limit illicit trade,” said Rich Bastan, vice president, Americas Commercial & State Government Transportation Sector, Xerox. “State governments lose an estimated $5 billion a year due to cigarette smuggling and we are working closely with Kentucky to increase collections on all cigarette sales taxes due to them.” Kentucky has previously increased its state revenue with Xerox’s fuel tax and tracking product and realized the potential to regain revenues from lost tobacco taxes through automated reporting, regulatory compliance, and data analytics. “DOR is looking for Xerox to bring to KY Tobacco Excise Tax administration and its filer community the same robust efficiencies the company has previously delivered to the Commonwealth and the business community for Motor Fuels Tax administration,” said Lori H. Flanery, secretary, Kentucky Finance and Administration Cabinet. About Xerox Since the invention of Xerography 75 years ago, the people of Xerox (NYSE: XRX) have helped businesses simplify the way work gets done. Today, we are the global leader in business process and document management, helping organizations of any size be more efficient so they can focus on their real business. Headquartered in Norwalk, Conn., more than 140,000 Xerox employees serve clients in 160 countries, providing business services, printing equipment and software for commercial and government organizations. Learn more at www.xerox.com. Note: To receive RSS news feeds, visit http://news.xerox.com/rss. For open commentary, industry perspectives and views visit http://www.linkedin.com/company/xerox, http://twitter.com/xeroxcorp, http://realbusinessatxerox.blogs.xerox.com, http://www.facebook.com/XeroxCorp, http://www.youtube.com/XeroxCorp. Xerox ® and Xerox and Design ® are trademarks of Xerox in the United States and/or other countries.