1. 43TH CIAT General Assembly April 2009 Santo Domingo, DR
THE INFORMATION AND COMMUNICATION TECHNOLOGIES AT THE SERVICE OF THE TAX ADMINISTRATION
43TH CIAT General Assembly
April 2009
Santo Domingo, DR

2. Introduction ICT has impacted the work of mankind
Managers in any organization must create the proper environment for the use of ICT’s, no matter their expertise area.
In the Tax Area the focus must be identify the way of transform processes in order to :
Increase Compliance level of taxpayers
Improve Taxpayers Control
Promote transparency in the actions of the Tax Administrations
Better Services
Decrease Compliance Costs for the Taxpayer
Decrease Collection Costs for the Tax Administration

3. IT Governance
Is a collection of principles and practice discipline to achieve the link between organization strategy and the Decisions in the use of IT’s
Good IT Governance harmonizes decisions about the management and use of IT with desired behaviors and business objectives.

4. IT Governance Archetypes
How an organization makes one or more of the five key IT decisions (Principles, Architecture, Infrastructure, Business Application needs, Investment and Priorities) or provide input to the decision makers, is based on one of the following six archetypes:
Business Monarchy: Senior Business Executives make IT decisions affecting the entire organization.
IT Monarchy : IT professionals make IT decisions.

5. IT Governance Archetypes
Feudal: Business unit leaders, Key process owners or their delegates make IT Decisions
Federal: Senior Business Executives , Business unit leaders, Key process owners or their delegates make IT Decisions. IT Leaders might also be involved in the decision making as additional participants.
Duopoly: Decisions Represent a bilateral agreement between IT executives and one other group. This group may be Business unit leaders or Business process owners.
Anarchy: Individuals or small groups make their own decisions based only in their local needs.

6. IT Governance Archetypes
To analyze the use of the different archetypes , a survey was made among large profit and non profit organizations. This survey show the following facts :
80% of organizations provided input through a mixed Federal – Duopoly archetype model.
In government and non profit organizations the primary archetype is Business Monarchy, with the exception of decisions regarding IT architecture.
The less frequent archetype is IT Monarchy, the decisions make by the IT monarchy is focus on architecture.
20% of organizations provided input through a feudal archetype model.

7. How to Evaluate the proper use of ICT’s ? *
*MacFarlam Matrix

8. Virtual Office Implementation
GIBSON-HAMMER MATRIX
Virtual Office Implementation

9. Fiscal Printers Implementation
GIBSON-HAMMER MATRIX
Fiscal Printers Implementation

10. Factors that must be considered to achieve that ICT’s support a tax Administration seeking better efficiency and efficacy

11. Factors that must be considered
The definition of the role and the impact of ICTs on the organizational strategy
Factors of Compliance Level and Consistency

12. Factors of Compliance Level and Consistency

13. DGII strategic Plan 2007 PLANS AND PROJECTS OBJETIVES BUDGET
DIRECTIVE
FIGHT EVASION
WITH THE IMPROVEMENT OF
COMPLIANCE CONTROL PROCESSES
INCREASING RISK PERCEPTION
2007
PLANS
AND PROJECTS
CREATE EFICIENT INFORMATION MECHANISM FOR THE TAXPAYER
AND THE SOCIETY.
CONTINUOUSLY
INCREASE
COLLECTIONS
OFFER A QUALITY SERVICE
THAT FAVORS VOLUNTARY
COMPLIANCE AND DECREASE COMPLIANCE COSTS
STRENGTHEN INTERNAL PROCESSES THAT SUPPORT TAX FUCNTIONS, (BUDGET ADMINISTRATION, HUMAN RESOURCES AND INTERNAL COMUNICACTIONS).
BUDGET
Plans and Projects must be aligned with strategic objectives thru institutional strategies

14. Factors that must be considered
The alignment of ICTs Vision with the organization’s strategy.
“Equip the DGII with the most appropriate ICT Platform to accomplish it’s strategic objectives., using leading tools/hardware in ICT Platform components (Servers, Data Bases, application Development, Data Storage, Security and Network Administration), to guarantee better availability of Technology services to internal and external users, working with ethical and professional people, motivated and aligned with organization objectives, to be referring in ICT use in Dominican Republic.”

15. Factors that must be considered
3) The organization’s integral vision
The Capacity of see the TA objectives above individual objectives of each area inside the organization.
Use of every available factor: Technology, Human Resources and techniques to improve processes, all working together to get better outcome for the organization.

16. Factors that must be considered
4) The tax administration’s transforming commitment of key processes both inwardly and outwardly
There area some risk in the use of ITC that a TA must be willing to assume.

17. Factors that must be considered
5) The ability to return to taxpayers, through the TA’s better services and more transparent actions, the investments in ICT-related projects.
The best way to achieve a positive valuation of ICT investment is using ICT to show information about TA performance.
Virtual Offices are the best mechanism to improve service.

18. Factors that must be considered
TA’s have the opportunity to be a role model in the efficient use of ICT’s to improve service, decrease operational costs both the TA and Taxpayers and have every time a more transparent operation. Because of its interaction with the country productive sectors can generate changes in their behavior and the TA decisions can be a “Driver” in the use of ICT’s in productive sectors. Hence, the proper use of ICT generate substantial changes in our organizations as much inside and outside.

19. Factors that must be considered
6) The legislation available to undertake modernizing processes.
The Tax Code was reformed in 2006 ( Law) to allow , fax or any electronic notification agreed between the TA and the Taxpayer.
Digital Signatures. The law allows the use of digital signatures.

21. Some DGII Results
Until 2005, no electronic tax return was received by the DGII
In 2008, 80% of the VAT returns and 75% of the income tax returns were received electronically. If the figures pertained only to Corporate, they would be 90% and 85% respectively.
From 2007, 90% of the data from VAT taxpayers and 100% from the persons subject to declare income detail were forwarded through the Online Office.

22. Some DGII Results
82% of taxpayers who submit a tax return have an access code to the Virtual Office.
According to a survey of Virtual Office users performed during the period February-March 2008, 99.7% of interviewees think that the Virtual Office facilitates their fulfillment, and 81.9% report to have cut down tax fulfillment costs.

23. Some DGII Results
Quoting The world Bank In its “Doing Business 2009 “ report: “Dominican Republic is the top global and regional reformer, Introduced or improved online registration procedures. In addition, in 2007 it fully implemented online filing and payment, piloted in The Dominican Republic reduced start-up cost and introduced online name verification …”. DR went from 139th position in 2008 to 72th in 2009 regarding paying taxes.

24. Taxpayers Perception about DGII
Results of a February - march 2008 survey

25. Importance Evaluation about DGII: 95
Importance Evaluation about DGII: 95.8% of interviewees think the institution is “Important”

26. DGII Image Perception : 89
DGII Image Perception : 89.6% of interviewees have a positive image of DGII (58.1% Good y 31.5% Excellent).

27. DGII Organized Evaluation: 85% of interviewees think its organized.

28. DGII human Resources Evaluation: 80% of interviewees think that HR have the knowledge to do their job

29. DGII Diligence Evaluation: 81
DGII Diligence Evaluation: 81.3% of interviewees think DGII is a diligent organization.

30. DGII modernity Evaluation: 92
DGII modernity Evaluation: 92.8% of interviewees think DGII is a modern organization.

31. DGII efficiency Evaluation: 85
DGII efficiency Evaluation: 85.6% of interviewees think DGII is an efficient organization.

32. 2008 Vs 2007 evaluation: 83,5% think DGII its better than previous year.

33. General evaluation of DGII actions to fight tax evasion: 89,2% of interviewees have a positive evaluation (64% Good and 25,2% excellent) the actions that DGII applied to fight tax evasion.

34. Trust in DGII evaluation: 89.5% of interviewees trust the DGII

35. DGII Credibility Evaluation: 86
DGII Credibility Evaluation: 86.7% of Taxpayers think DGII has a high level of credibility (46% Excellent and 40.8% Good)