E-FILING: A COMPARISON OF THREE ITALIAN PUBLIC BODIES (THE TAX AGENCY) Andrea Resca Luiss Guido Carli, Ce.R.S.I., Rome IRSIG-CNR, Bologna

Kooiman’s perspective (1999) of governance Governance: an entity formed by constituents that are interrelated with each other. Each part is dependent and yet, at the same time, affects other parts on the basis of interactions (general theory of a system and socio-cybernetic governance)

Nature of Interactions Modalities of Interactions: Diversity (multitude of individuals and organizations) Dynamics (change vs. conservation and special interests vs. common interests) Complexity (nature, form and intensity of interactions) The Logic of Interactions: Intentional Level (images, instruments and action conditions) Structural Level (culture, resources and power)

Governing Orders and Governing Modes First-Order Governing: (day to day activity) Meta-governance : Second-Order Governing: (institutional setting) Modalities of Interaction Intentional Level Level of social acceptability Level of legitimacy Images Structural Level Governing Modes Self- Governing Co-Governing Hierarchical- Governing

The management of tax returns before and after 1997 reforms Before 1997: 12 tax-returns handling Centres snow under with a backlog of cases to deal with About paper forms to be manage tax litigation pending cases Today: The closure and disposal of 10 tax-return Centres since 2001 ( square metres of accommodation space savings The elimination of data acquisition costs since 2000 The on-going reduction of human resources

Table n. 1: Returns sent to the Tax Agency in 2001 and 2004 by Fisco Online (the e- filing system dedicated to citizens and SMEs). Type of documentEntriesReached 2001 EntriesReached 2004 Individual income tax return Partnership income tax return Joint-stock income tax return Non-profit income tax return Table n. 2: Returns sent to the Revenue Receipts Agency in 1998 and 2004 by Entratel (the e-filing system dedicated to mediators) Type of documentEntriesReached 1998 EntriesEffectively Reached 2004 Simplified individual income tax return Individual income tax return Partnership income tax return Joint-stock income tax return Non-profit sector income tax return

The first-order governing at the Italian Tax Agency Diversity: the subdivision of the e-filing system into Fisco Online, Entratel and Siatel Dynamics: flexibility in the use of the mandatory way of on line document transmission according to different categories of users Complexity: on line document transmission involves an increase of complexity for tax payers and a reduction for the Agency Problem solving and opportunity creation: more modalities for submitting tax returns, possibility to manage them electronically, acceleration of reimburse procedures, automatic merits and formal control etc.

The second-order governing at the Italian Tax Agency The Hierarchical governing mode is preponderant with intermediaries Self-governing supported by incentives permitted to enlarge the number of tax payers who take advantage of intermediaries for tax returns drawing up and then their of online transmission Co-governing prevails in the relationships with other public administrations

Meta-governance at the Italian Tax Agency The Tax Agency shoulders a large part of costs due to the introduction of the e-filing procedures Relationships between the Tax Agency and other public bodies are more equilibrated and then benefits are shared The digital divide in some areas of the country hinders e-filing diffusion even though collaborations with Communes and the diffusion of mediators can deal with this issue

First-Order Governing Meta-governance Second-Order Governing Diversity the subdivision of the e-filing system into Fisco Online, Entratel and Siatel Costs re-allocation Taxpayers shoulder a large part of the costs due to the introduction of the e-filing system Hierarchical The Hierarchical governing mode is preponderant with intermediaries Dynamics flexibility in the use of the mandatory method of on-line document transmission according to different categories New equilibrium There is an equilibrium between the Tax Agency and Communes are more equilibrated and win-win solutions have been adopted Self-governing Self-governing supported by incentives allows an increase in the number of tax payers who take advantage of mediators and the return of online transmissions Complexity on-line document transmission and electronic identification involves increase complexity for taxpayers and a reduction in complexity for the Tax Agency Digital divide The digital divide in some areas of the country hinders e-filing diffusion even though the role played by mediators, and the collaboration between the Tax Agency and Communes can reduce it Problem solving and opportunity creation : more modalities for submitting tax returns, the possibility to manage them electronically, the acceleration of reimbursable procedures, automatic merits and formal control etc. Co-governing Co-governing prevails in the relationship with other public administrations

Conclusion An environment characterized by points of access and trust spreaders has favoured the development of the e-filing system at the Tax Agency Mediators and, above all, tax payers have supported the large part of costs due to the introduction of this e-filing system Legal and administrative instruments are introduced for regulating relationships with tax payers and mediators but cooperation characterizes relationships between the Tax Agency and other public bodies