46th CIAT GENERAL ASSEMBLY SANTIAGO DO CHILE April-2012 Portuguese Tax and Customs Authority

Strategic Plan for Taxpayer’s Quality of Service 1. VISION 2.OBJECTIVES 3.STRATEGIES 4.IMPLEMENTED SERVICES AND INHERENT BENEFITS 5.MAJOR ACHIEVEMENTS

The vision underlying the Plan for Taxpayers’ Quality of Service is to build a tax and customs administration (1) closer to citizens and business, i) available to provide support, making the fulfillment of tax obligations simpler, faster and inexpensive and ii) that is capable of providing quick and effective answers to taxpayers’ queries, (2) leading to the development of a mutual trust relationship with taxpayers. VISION

Proactive Tax and Customs Authority Services Public Administration Taxpayers Private Sector

VISION - Taxpayers at the core of the system 360º view

VISION / MAIN OBJECTIVES VISION MAIN OBJECTIVES Simplification of procedures Providing taxpayers high quality/excellence services Providing taxpayers high quality/excellence services Voluntary compliance cost reduction Voluntary compliance cost reduction Developing trust and security principle Developing trust and security principle Response to taxpayers' requests Support the fulfillment of obligations Support the fulfillment of obligations Multiply the communication channels Multiply the communication channels Dematerialize processes and communications Dematerialize processes and communications Eliminate the inefficiencies of systems Eliminate the inefficiencies of systems

Subsidiarity E-tax administration Interaction with taxpayers Tax Ecosystem STRATEGIES

The intensification of the investment in the interaction with taxpayers, will generate significant gains: For taxpayers, as voluntary compliance avoids non compliance costs - interests, fees, fines, etc…; For the State, as this is the main channel for the exercise of preventive function on tax evasion and tax non compliance; For the tax system in general, as with increased levels of voluntary compliance the system operating costs are reduced; For the country, as the taxpayers’ system acceptance level is increased in general. MAIN STRATEGIES

Certificates, proof documents and other administrative documents on the Internet and SMS Notices Electronic documents and notifications Integrated attendance and communication channels Telephone Support GPS – Services and Process Management Electronic “Green Receipts” Letter of Commitment on Quality IMPLEMENTED SERVICES

REMINDERS ( AND SMS) TWITTER LEAFLETS KNOWLEDGE DATABASE VIDEOS E-NOTEBOOK INFORMATION, EDUCATION AND ADVISE IMPLEMENTED SERVICES

Leaflets Phone No. reliability Call Centres Start-up Business Death Communication Rights/duties as owner of a building E-services charter

NUMBER OF ELECTRONIC COMUNICATIONS SENT In 2009 the Tax Administration started sending electronic information, via and SMS, to the taxpayers. The aim is to promote the voluntary compliance; by informing them of their rights and duties. The information sent covers all tax obligations (returns and payments) and provide a support service to taxpayers, according to their business activity or their relationship with Tax Administration.

Electronic documents and notifications In January 2012 electronic notification became mandatory for all taxpayers subjected to CIT and/or VAT Total number of adherents:

Taxpayer’s Segmentation using E-notebook Registry and breakdown of the communications sent by AT; Record of petitions and returns submitted by the taxpayer and his/her situation; Notice of the tax obligations – returns and payments; After logging in, taxpayer can only visualize his/her particular tax obligations; All events should remain on the taxpayer’s interactive agenda, even after completed. To inform taxpayers of their rights and obligations; To provide an information and support service to taxpayers, according to their business activity or their relationship with Tax Administration;

Integrated Channel Strategy CRM Allows the management of all the information gathered from the several privileged points of contact by tax administration (in person, telephone and ). Allows the standardization of the information provided to the taxpayer by the officials on-call. Allows the understanding of the situations which cause the taxpayer’s contact to the services. Customer Relationship Management

Internal procedures dematerialization Redesign of processes Conversion of all documents to a digital format – the end of a cycle started with the automation of procedures in VAT (1986) Work process standardization GPS – Services and Process Management

GLOBAL TAX SERVICE - NETWORKING AT networking operates all over the country as a single, global service. The GPS is the connection point More than 400 services (central, regional and local services) Physical installations in all municipalities of Portugal

GLOBAL TAX SERVICE - NETWORKING Specialization of resources J T Each tax service stops working per si but as a single service, specializing in tax areas, geographically distributed Expected result: more quickly and uniform in the answers to taxpayers I T

Call Centre AT has decentralized CAT - Telephone Service Centre, implementing clusters in 14 regional offices and in 75 local services which use the same network throughout the country. Legend: Temporary Permanent CAT’sDecentralized structure Central1 Regional14 Local (permanent)75 Local (temporary)100 Telephone Support

OUTBOUND CAMPAIGNS Call Centre Telephone Support In 2011, the implementation of outbound campaigns began with telephone calls at the initiative of AT, alerting taxpayers with tax debts about the advantages of settlement and compliance.

Total registry of calls - Handled / Dissuaded

Handled Dissuaded

TOTAL REGISTRY OF CALLS RECEIVED / HANDLED

ADVANTAGES: Simple, free of charge and secure system Use of electronic means to ease voluntary tax compliance Reduction of costs associated to compliance Pre-filling of Income Tax and VAT returns Available to taxpayer 24h/day, 365 days/year Immediate availability of the receipt to the buyer and the service provider at the “Portal das Finanças” Electronic “Green Receipts”

Quality Commitment Letter, in which AT is committed to provide answers to requests from taxpayers Letters of Commitment

ADMINISTRATIVE REVISION PROCESSES average time of conclusion (in days)

As a consequence of the implementation of the Plan for Quality, the 2012 State Budget enshrined three new rights for taxpayers: 1.– The right to be informed of their tax obligations by tax administration, whenever it becomes aware of them; 2. – The right to be informed of their rights, in particular of their tax benefits, whenever tax administration becomes aware of them; 3. – The right to voluntarily settle non-compliance situations detected by tax administration, and in this case, enjoy the right of a 12.5% statutory minimum reduced fine. The implementation of these rights is electronically informed to taxpayers by AT, as per the previously referred situations, and shall become a tax administration obligation. NEW RIGHTS FOR TAXPAYERS INCITEMENT TO GOOD PRACTICES

The Portuguese Tax and Customs Authority is walking side by side with taxpayers 2009 Taxpayer’s Quality Service Strategic Plan Implementation 2005 Beginning of the process of Modernization of Tax Justice

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