Technology Innovation and Tax Systems Lorenzo Madrid Chief Technology Officer Microsoft – Latin America

Education PoliceJustice Tax Health Citizen “The Vertical View of e-Gov”

"The hardest thing to understand in the world is the income tax!"

Changing Complexity to Simplicity Easy to Pay Easy to Collect Easy to Understand Easy to Audit Easy to Use Return to Society Easy to Operate Citizen Government

Capital Gains PropertyIncome Sales Tax Others Taxes Citizen Collection Auditing “Interoperability ”

Citizens Flexibility Flexibility Cost Reduction Cost Reduction Better services Better services Governments Greater Efficiency Greater Efficiency Improve transparency Improve transparency Leverage Investments Leverage Investments Interoperability Is Important To Everyone Interoperability Enterprises Business necessity Business necessity Reduce costs Reduce costs Customer value Customer value Government Bureaucracy imposes a high burden to GDP

Number of transactions per year Minutes %0.06%0.08%0.10%0.13%0.15%0.17%0.19%0.21%0.23%0.25% %0.13%0.17%0.21%0.25%0.29%0.33%0.38%0.42%0.46%0.50% %0.19%0.25%0.31%0.38%0.44%0.50%0.56%0.63%0.69%0.75% %0.25%0.33%0.42%0.50%0.58%0.67%0.75%0.83%0.92%1.00% %0.31%0.42%0.52%0.63%0.73%0.83%0.94%1.04%1.15%1.25% %0.38%0.50%0.63%0.75%0.88%1.00%1.13%1.25%1.38%1.50% %0.44%0.58%0.73%0.88%1.02%1.17%1.31%1.46%1.60%1.75% %0.50%0.67%0.83%1.00%1.17%1.33%1.50%1.67%1.83%2.00% %0.56%0.75%0.94%1.13%1.31%1.50%1.69%1.88%2.06%2.25% %0.63%0.83%1.04%1.25%1.46%1.67%1.88%2.08%2.29%2.50% %0.69%0.92%1.15%1.38%1.60%1.83%2.06%2.29%2.52%2.75% %0.75%1.00%1.25%1.50%1.75%2.00%2.25%2.50%2.75%3.00% working hours/year Vertical e-gov Solutions Inter-op Actions

CountryGDP (2003) US$ Million Pop. (2003) Million GDP/cap (2003) US$ 0.3%0.7%1.2%3.0% AVG Argentina444, ,582 1,3343,1135,33713,342 5,782 Bolivia22, , Brazil1,390, ,767 4,1719,73216,68441,709 18,074 Chile161, , ,1291,9354,838 2,096 Colombia299, , ,0993,5988,996 3,898 Costa Rica39, , , Dominican Rep58, , , Ecuador47,892133, , El Salvador32, , Guatemala50, , , Honduras18, , Jamaica11, , Mexico950, ,136 2,8506,65111,40228,504 12,352 Nicaragua13, , Panama20, , Paraguay27, , Peru143, , ,0031,7194,298 1,862 Uruguay28, , Venezuela126, , ,5143,785 1,640 GDP/cap Source: World Economic Forum & INSEAD – France The Global Information Technology Report (2004 – 2005)

Using the Right Software Architecture brings exponential productivity gains; Web Services

PC Architecture DOS Spreadsheets Word Processors PC Mid 80s Internet Mid 90s Applications Late 80s-Mid 90s MouseGUILANs XML/SOAPHTTP/HTMLSMTP Clients Web Browsers Protocols: Loosely Coupled APIs: Tightly Coupled Technology Adoption

PC Architecture DOS Spreadsheets Word Processors PC Mid 80s Internet Mid 90s Applications Late 80s-Mid 90s Web Apps Mid 00s -... Today Speech/WritingDevicesWiFi/Broadband Web Services MouseGUILANs XML/SOAPHTTP/HTMLSMTP Clients Web Browsers Protocols: Loosely Coupled APIs: Tightly Coupled

Convergence

Networking Data Management UNIX Systems Integration Industry Standards Languages Applications Identity Legacy Hosts XML Web Services IT Strategy Works With What You Have Interoperable By Design

Innovation Investments Unified Communications & Collaboration Content Management Business Intelligence SearchMobility Governance & Management Workflow & Portal Infrastructure for Web Services

The Role of Software Support Teamwork Foster Compliance Facilitate Insights Provide Information Visibility Enable Process Excellence Help People Work Anywhere, Anytime Enable Process Excellence Give Information Visibility Facilitate Insights Support Teamwork and Goal Sharing Diminish Space/Time Barriers to Work Foster Compliance

People is your most valuable asset! How will they work in the future?

The Barometer Invented by Evangelista Torricelli, a student of Galileo Galilei, in 1643;Evangelista TorricelliGalileo Galilei1643 Measures atmospheric pressure; Altimeter.

The Barometer, the Student and the Tour Eiffel…

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