Information Technology (IT) Systems to Support Recovery Process of the

State Revenue Service of the Republic of Latvia

Sanita Vītola-Hmeļevska, SRS Tax Board, Head of Recovery Process Management and Support Division

9 September 2011

Main SRS IT Systems

Electronic Declaration

System(EDS)

Electronic Declaration

System(EDS)

Tax Information

System(NIS)

Tax Information

System(NIS)

Central Customs AuthoritySystem (CMIS)

Central Customs AuthoritySystem (CMIS)

Data Warehouse

System (DNS)

Data Warehouse

System (DNS)

Currently at full extent the information in the given IT systems is available to the SRS staff only. SRS with particular public bodies, e.g., State Social Insurance Agency, State Police etc., has entered into inter-agency agreements on availability of certain data. Currently negotiations are under way with sworn bailiffs on connection of IT systems at their disposal to the SRS IT systems.

Recovery process

Electronic Declaration System (EDS)

EDS functions, tasks and objectives:

Electronic filing of declarations, reports, tax assessments and other documents. The system ensures simplified data exchange process between SRS and taxpayers by providing a possibility to file various documents easily and operatively via Internet connection. Currently 95% of all reports and declarations, provided for in legislation, are available for electronic filing.

General characteristics of information circulation volumes and potential users of information: EDS allows taxpayers to file with the SRS declarations, applications, reports and tax assessments. With EDS it is possible: • to draw up reports, applications and declarations for filing electronically (by attaching a pre-prepared file with report or declaration data or by filling in an Internet form); • to view, edit, delete and print the entered document, as well as to check correctness of the data entered; • to copy the document filed in the previous taxation period to create a new document with data of the previous document; • to sign electronically and file the drafted document; • to track, if all the documents filed are accepted and included in the SRS database; • to obtain information on taxpayer own data, accumulated in the SRS databases; • to file a VAT refund claim for competent authorities of other Member States; • to connect to other SRS information systems which provide electronic filing of exit declarations, entry summary declarations and transit declarations.

Advantages of EDS

Information acquisiton speed

Information acquisiton speed

Simplified taxpayer communication with SRS

Simplified taxpayer communication with SRS

• Possibility to file a question on debt occurrence and payment, as well as to file an application for extension of maturity date, postponement or division.

• Possibility to file a question on debt occurrence and payment, as well as to file an application for extension of maturity date, postponement or division.

• SRS recovery staff may react fast to occurred taxpayer’s debt;

• Taxpayer at any time through authorization to EDS, may obtain information on the status of tax payments.

• SRS recovery staff may react fast to occurred taxpayer’s debt;

• Taxpayer at any time through authorization to EDS, may obtain information on the status of tax payments.

Currently development of a new EDS function is under way, and within the framework of it taxpayers authomatically immediately after authorization to EDS will be notified of a debt that has occurred.

Tax Information System (NIS)NIS functions:Taxpayer registration, processing of reports, declarations, submitted by taxpayers, record of budget payments, records of cash registers, registered with SRS and obtaining reports; record of tickets, registered with SRS and obtaining reports; record of transaction confirming receipts, registered with SRS and obtaining reports; record of annual statements and obtaining reports. Entry, processing, summary of special permits (licences), permits and references, general and one-time guarantees, excise goods circulation report, report on petroleum product (fuel) reserves, petroleum product (fuel) reserve services, petroleum product (fuel) storage services, excise goods movement risk form, excise goods accompanying documents, reports on excise goods circulation; data exchange with EU Member States on persons involved in excise goods circulation.

General characteristics of NIS information circulation volumes and potential information users: NIS is intended for performance of SRS functions, incl.: •for maintenance and supplement of taxpayer register (NMR); taxpayer analysis;•for performance of common functions of tax, fee and payment record; •for processing and storage of declarations, tax reports or other source documents, specific to each tax or payment type, as well as for performance of other specific functions;•for support of SRS control measures (audit, thematic checks etc.), incl. audit result storage in database, as well as for control of settlement of additionally assessed amounts and fines, processing of VAT control process data and processing of VAT risk analysis results; •for registration of transactions and objects, controlled by SRS, and record of their movement or circulation. Sytstem is operated by SRS staff members who use Centralized NIS database (CeDB).

CMIS functions: Ensures gathering of information, necessary for the operation of Latvian customs, in one database, receiving customs declaration data from Customs Declaration Automatized Processing System ASYCUDA++, Export control system and New computerized transit control system, provides centralized record and control of customs payments, record of customs violations, provides a possibility to operatively control cargo flows and perform analysis of customs operations, ensures maintenance database of permits, necessary for customs operations, provides other public bodies with customs information they require, as well as provides information which is needed for customs statistics and work of other SRS structural units, Data warehouse.

General characteristics of CMIS information circulation volumes and potential information users: CMIS is used by SRS customs administration staff, as well as brokers who have concluded corresponding SRS cooperation agreements. Task of CMIS is to provide assistance to successful performance of customs functions, to ensure receipt, storage and automatized use of information which is necessary for customs work. For this purpose along with processing and record of such customs basic documents as customs cargo declarations or single administrative document (SAD) and TIR carnets, CMIS has implemented several subsidiary functions for obtaining and updating information on: performers of customs procedures; goods entry, exit, processing and permits of other type; customs tariffs; assessed and actual customs payments; identified customs violations and risk situations; cargo flows and other factors.

Central Customs Information System (CMIS)

• Via NIS and CMIS SRS staff members obtain information on taxpayer’s debts, as well as on tax excess credits (overpayments).

• SRS staff member at any time to start recovery procedures, from NIS or CMIS, one can print a list of taxpayers who have tax debts or tax excess credits.

• Notwithstanding the fact hat recovery process at SRS is organized according to the principle of territorial division, information from NIS and CMIS of SRS in viewing mode is available to all the SRS staff members who are involved in recovery process.

•Via NIS and CMIS, having regard to the fact that NIS is connected to IT system databases of other public bodies, a SRS staff member, involved in recovery process, obtains broad information on the tax debtor’s property, employment, income, place of residence (registered address), relatives etc.

Advantages of NIS and CMIS of SRS

Creation of recovery file in

NIS

Viewing taxpayer’s card in NIS

and data analysis to

state absence of

circumstances that do not

allow recovery

Creation of recovery file in NIS

Creation of automatic warning and decision on recovery of late tax payments

Manual reflection in NIS of recovery actions taken

Scheme of Recovery Process in NIS

Data Warehouse System (DNS)

DNS functions:Centralized system which integrates and updates information from many information sources regarding taxpayers, assessed taxes, submitted documents and customs operations to provide support in the decision development and making procedure.

General characteristics of DNS information circulation volumes and potential information users:DNS is built as a centralized system with a common database which integrates and updates information from the main SRS information systems. It’s objective is to provide SRS staff members, as well as officials of interested public bodies with operational analytical reports, provide support for the performance of various risk analysis and control tasks. It is used for information exchange with other state and European Union institutions, synchronous or asynchronous data exchange with other (incl. those of other institutions) information systems through application of Web service technologies. The system’s functionality allows to create regularly updated report libraries, organize creation, storage and exchange of reports and analysis documents and their exchange between users.

DNS is a recovery process support system. In DNS a SRS staff member obtains very important information on the debtor’s financial situation (e.g. information on movable and immovable property which is registered in the taxpayer’s name in public databases). By using information from DNS it is possible to perform quality control function, draw up reports on tax debtors and debts, plan he work of structures implementing recovery process and recovery actions to be taken.

Advantages of Data Warehouse System (DNS)

DNS is a recovery process support system. In DNS a SRS staff member obtains very important information on the debtor’s financial situation (e.g. information on movable and immovable property which is registered in the taxpayer’s name in public databases). However, currently it is not possible to obtain from DNS information on dangerous equipment, herds, securities, patents, trademarks which are registered in the name of the tax debtor.

DNS is a recovery process support system. In DNS a SRS staff member obtains very important information on the debtor’s financial situation (e.g. information on movable and immovable property which is registered in the taxpayer’s name in public databases). However, currently it is not possible to obtain from DNS information on dangerous equipment, herds, securities, patents, trademarks which are registered in the name of the tax debtor.

By using information from DNS it is possible to perform quality control function, draw up reports on tax debtors and debts, plan he work of structures implementing recovery process and recovery actions to be taken.

By using information from DNS it is possible to perform quality control function, draw up reports on tax debtors and debts, plan he work of structures implementing recovery process and recovery actions to be taken.

Thank you for attention!