H u m a nH u m a n F I TF I T Fitness for Purpose 1 e-Macao  April 2005 Revenue E-services Bernd Friedrich HumanFIT

H u m a nH u m a n F I TF I T Fitness for Purpose 2 e-Macao  April 2005 Criteria for successful E-government Projects  Value to citizens of the E-government project  Improvement in tax administration efficiency  Probability of project delivery within 18—24 months.

H u m a nH u m a n F I TF I T Fitness for Purpose 3 e-Macao  April 2005 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 admministrations‘s transaction costs and improved service delivery  Involvement of the private sector in the initiative was key for the success and sustainability of the project.

H u m a nH u m a n F I TF I T Fitness for Purpose 4 e-Macao  April 2005 Guatemala New 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.

H u m a nH u m a n F I TF I T Fitness for Purpose 5 e-Macao  April 2005 Guatemala Implementation 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.

H u m a nH u m a n F I TF I T Fitness for Purpose 6 e-Macao  April 2005 Guatemala Benefits 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

H u m a nH u m a n F I TF I T Fitness for Purpose 7 e-Macao  April 2005 Guatemala Lessons 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.

H u m a nH u m a n F I TF I T Fitness for Purpose 8 e-Macao  April 2005 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.

H u m a nH u m a n F I TF I T Fitness for Purpose 9 e-Macao  April 2005 Mauritius New 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 employer‘s bank to effect a funds transfer to the government‘s accounts.

H u m a nH u m a n F I TF I T Fitness for Purpose 10 e-Macao  April 2005 Mauritius Implementation Challenges  Due to the complexity of the project, staged delivery of functions  Main challenge was the government‘s commitment to better services  Stakeholder participation  Changes to legislation  Design and development of the EDI interface.

H u m a nH u m a n F I TF I T Fitness for Purpose 11 e-Macao  April 2005 Mauritius Benefits 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.

H u m a nH u m a n F I TF I T Fitness for Purpose 12 e-Macao  April 2005 Mauritius Lessons 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.

H u m a nH u m a n F I TF I T Fitness for Purpose 13 e-Macao  April 2005 Chile  Chile‘s Internal Taxation Service online system has won the Chilenean „Technology Innovation Award“ and an award for the best institution‘s web site from newspaper readers  After filing their return online, taxpayers receive an assessment within 12 hours.

H u m a nH u m a n F I TF I T Fitness for Purpose 14 e-Macao  April 2005 Chile New Approach Staged delivery using Oracle‘s internet technology:  1 st phase: online information  2 nd phase: interactivity  3 rd phase: electronic filing.

H u m a nH u m a n F I TF I T Fitness for Purpose 15 e-Macao  April 2005 Chile Implementation 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.

H u m a nH u m a n F I TF I T Fitness for Purpose 16 e-Macao  April 2005 Chile Benefits 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.

H u m a nH u m a n F I TF I T Fitness for Purpose 17 e-Macao  April 2005 Chile Lessons learned  The popularity of the new service was a catalyst for changes a number of areas.

H u m a nH u m a n F I TF I T Fitness for Purpose 18 e-Macao  April 2005 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.

H u m a nH u m a n F I TF I T Fitness for Purpose 19 e-Macao  April 2005 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 –Registration certificate (e.g. PDF file).

H u m a nH u m a n F I TF I T Fitness for Purpose 20 e-Macao  April 2005 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 .

H u m a nH u m a n F I TF I T Fitness for Purpose 21 e-Macao  April 2005 G2B / G2C Applications Charge / penalty order  Input / tax administration: –Charge / penalty information  Output / tax administration: –Charge / penalty order is send by as an attachment  Processing: –If not confirmed by taxpayer within specified time frame, resend by postal service.

H u m a nH u m a n F I TF I T Fitness for Purpose 22 e-Macao  April 2005 Revenue E-services Bernd Friedrich