Revenue Eservices

1
Revenue E-services

• Bernd Friedrich
• Consultant _at_ HumanFIT

2
Criteria for successfulE-government Projects

• Value to citizens of the E-government project
• Improvement in tax administration efficiency
• Probability of project delivery within 1824
  months.

3
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
  admministrationss transaction costs and improved
  service delivery
• Involvement of the private sector in the
  initiative was key for the success and
  sustainability of the project.

4
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.

5
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.

6
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

7
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.

8
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.

9
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
  employers bank to effect a funds transfer to the
  governments accounts.

10
MauritiusImplementation Challenges

• Due to the complexity of the project, staged
  delivery of functions
• Main challenge was the governments commitment to
  better services
• Stakeholder participation
• Changes to legislation
• Design and development of the EDI interface.

11
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.

12
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.

13
Chile

• Chiles Internal Taxation Service online system
  has won the Chilenean Technology Innovation
  Award and an award for the best institutions
  web site from newspaper readers
• After filing their return online, taxpayers
  receive an assessment within 12 hours.

14
ChileNew Approach

• Staged delivery using Oracles internet
  technology
• 1st phase online information
• 2nd phase interactivity
• 3rd phase electronic filing.

15
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.

16
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.

17
ChileLessons learned

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

18
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).

20
G2B / G2C Applications

• 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.

21
G2B / G2C Applications

• 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.

22
Revenue E-services

• Bernd Friedrich
• Bernd.Friedrich_at_HumanFIT.biz