h u m a nh u m a n f i tf i t fitness for purpose 1 e-macao april 2005 revenue e-services bernd...

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1e-Macao April 2005

Revenue E-services

Bernd FriedrichConsultant @ HumanFIT

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2e-Macao April 2005

Criteria for successfulE-government Projects

Value to citizens of the E-government project

Improvement in tax administration efficiency

Probability of project delivery within 18—24 months.

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3e-Macao April 2005

Guatemala

Online tax filing and payment system since August 2001– BancaSAT

In December 2002, BancaSAT accounted for 84% of the tax revenues of the country

Significant reduction of the tax admministrations‘s transaction costs and improved service delivery

Involvement of the private sector in the initiative was key for the success and sustainability of the project.

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4e-Macao April 2005

GuatemalaNew Approach

Tax returns are filed and payments are made through taxpayers‘ online banking web sites

Taxpayer selects the form appropriate for the tax to be paid and completes the form online

Bank immediately debits the taxpayers bank account

Taxpayer immediately receives confirmation that the transaction was completed successfully

Accountants can file on behalf on their clients after authorisation

Bank deployed conputers in their branches to allow individuals to file and pay online.

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5e-Macao April 2005

GuatemalaImplementation Challenges

The commitment of all stakeholders, especially the tax administration management, commercial banks and taxpayers helped overcome all challenges

Stakeholders were consequently involved throughout the project

Approval of the new legal framwork for electronic filing needed to be obtained.

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6e-Macao April 2005

GuatemalaBenefits and Costs

Value to citizens and businesses:– File and pay anytime, anywhere

– Reduced transaction costs for businesses

Improvements in agency efficiency– Procedures in the revenue administration were

streamlined

– Spillover effects into other areas such as audit function or customs

Quick project delivery

Costs: USD 220

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7e-Macao April 2005

GuatemalaLessons learned

Keep it well defined and focussed

Define a narrow and realistic scope

Build in quick wins to achieve stakeholders buy-in deliver in stages if possible

Establish adequate legal framework

Prioritise quality of service

Partner with the private sector.

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8e-Macao April 2005

Mauritius

Contributions Network Project (CNP) connects allmost all employers to all government tax department via a single point of contact

Return are filed, confirmation is done by the respective departments

Payments are made electronically through direct debit arrangement.

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9e-Macao April 2005

MauritiusNew Approach

Employers can send a single electronic return for PAYE and VAT and make a single payment for both at the same time

Large employers can layer a front-end EDI software upon their own application software used for return preparation

CPN automatically generates an instruction to the employer‘s bank to effect a funds transfer to the government‘s accounts.

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10e-Macao April 2005

MauritiusImplementation Challenges

Due to the complexity of the project, staged delivery of functions

Main challenge was the government‘s commitment to better services

Stakeholder participation

Changes to legislation

Design and development of the EDI interface.

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MauritiusBenefits and Costs

Front end software has extensive validation rules

Electronically submitted returns include a breakdown of PAYE by employee

Government staff for data entry can be re-deployed to more productive tasks

Improved clash flow for clients

Employers pay a connection fee of USD 70 per user and USD 1200 per connection.

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MauritiusLessons learned

Creation of a shared vision is indispensable to secure the full participation of all parties

Initial roll out was made for only 30 employers to minimise the risks

Operation and maintenance of the VAN is outsourced.

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Chile

Chile‘s Internal Taxation Service online system has won the Chilenean „Technology Innovation Award“ and an award for the best institution‘s web site from newspaper readers

After filing their return online, taxpayers receive an assessment within 12 hours.

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ChileNew Approach

Staged delivery using Oracle‘s internet technology:

1st phase: online information

2nd phase: interactivity

3rd phase: electronic filing.

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ChileImplementation Challenges

Biggest challenge was the creation of the technological platform that would streamline the tax-filing and information process while maintaining absolute stability

Security

Expansion of the system to meet project growth.

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ChileBenefits and Costs

Online taxpayers appraise the system as easier, faster, and more accurate than traditional paper-based services

Cost of collection has decreased while accuracy has increased

Human resources have been released from repetitive tasks to more investigative tasks such as reducing tax evasion and enforcement

Taxpayers got an extra 10 days to declare their taxes using the online system

Funds for refunds are released approx. One month earlier than paper-based claims.

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ChileLessons learned

The popularity of the new service was a catalyst for changes a number of areas.

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G2B / G2C Information Services

Right and duties of taxpayers:– Registration

– Assessment

– Payments

Service portfolio of the DSF

Contact information

Grievance procedures

List of delinquent taxpayers

Downloads.

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G2B / G2C Applications

Taxpayer registration:

Inputs / taxpayer:– Registration information– Company registration– Electronic signature

Back-end processing:– Duplication verification– Company registration verification

Outputs / tax administration:– Submission report– Registration confirmation email– Registration certificate (e.g. PDF file).

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Return filing (e.g. income tax)

Inputs / taxpayer:– Return & annexes information– Tax credits information– Electronic signature

Front-end processing:– Calculation of tax payable

Back-end processing:– Verification procedures– Dues settlement verification

Outputs / tax administration:– Submission report– Confirmation email.

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Charge / penalty order

Input / tax administration:– Charge / penalty information

Output / tax administration:– Charge / penalty order is send by email as an

attachment

Processing:– If not confirmed by taxpayer within specified time

frame, resend by postal service.

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Revenue E-services

Bernd Friedrich

[email protected]

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