Building efficient tax administrations towards promoting national regional development
Download
1 / 33

BUILDING EFFICIENT TAX ADMINISTRATIONS TOWARDS PROMOTING NATIONAL REGIONAL DEVELOPMENT - PowerPoint PPT Presentation


  • 119 Views
  • Uploaded on

BUILDING EFFICIENT TAX ADMINISTRATIONS TOWARDS PROMOTING NATIONAL & REGIONAL DEVELOPMENT. 20 TH General Assembly and Technical Conference of COTA, Belize City, Belize, July 21-24 2008. Measuring Staff Performance and Evaluation of Performance in a Modern Tax System.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'BUILDING EFFICIENT TAX ADMINISTRATIONS TOWARDS PROMOTING NATIONAL REGIONAL DEVELOPMENT' - step


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Building efficient tax administrations towards promoting national regional development l.jpg

BUILDING EFFICIENT TAX ADMINISTRATIONS TOWARDS PROMOTING NATIONAL & REGIONAL DEVELOPMENT

20TH General Assembly and Technical Conference of COTA, Belize City, Belize, July 21-24 2008



Three main areas of examination l.jpg
Three main areas of examination a Modern Tax System

  • Criteria for a modern tax administrative system

  • Evaluation of a tax administration system

  • Measuring staff performance within a modern tax administrative system


What makes a tax administrative system modern l.jpg
What makes a tax administrative system modern? a Modern Tax System

Does one exist and if it does what does it look like/what are its features

Several studies have been done to determine this state


Criteria used to determine a good administrative system l.jpg
Criteria used to determine a good administrative system a Modern Tax System

Level of automation

Integration of data – especially with Customs

Management accountability

All operations places the taxpayer at the centre

Staff readiness to deal with the taxpayer – Training

Willingness to benchmark with leaders in tax administration e.g. New Zealand, Canada


Primary goal of a tax administrative system l.jpg
Primary Goal of a tax administrative system a Modern Tax System

To ensure compliance with tax laws


Compliance areas within the jamaican system l.jpg
Compliance areas (within the Jamaican system) a Modern Tax System

Promoting voluntary compliance becomes a primary concern – dependent on:

How TA interact with taxpayers

How employees impact public perception of the tax system


Additional compliance areas l.jpg
Additional compliance areas a Modern Tax System

Ease of payment

Enforcement - Identification of non-compliance risks


Evaluating a tax administration l.jpg
Evaluating a Tax Administration a Modern Tax System

  • In evaluating a tax administration one must evaluate the achievements of the strategic direction/goals of the organization and other subsidiary performance related indices


Strategic direction l.jpg
STRATEGIC DIRECTION a Modern Tax System

Strategic direction guided by :

(a) Road Map

(b) Strategic Plan –aligned to road map


The road map s conceptual framework l.jpg

Knowledge and a Modern Tax System

Understanding

of the Environment

A TAX COMPLIANCE MODEL

  • Extend to Marginalized

  • Recognize Mutual Obligation (rights and obligations)

The Road Map’s Conceptual Framework

  • Visible (Field Work)

  • Lower Compliance Burden (quality of service, ease of payment)

  • Firm yet Fair

Risk Assessment

ENFORCEMENT

  • Risk-based

SERVICE

Effective Segmentation

Customer Awareness

EDUCATION

  • Share Information

  • Build a Culture of Compliance

  • Increase Knowledge of Obligations


Slide12 l.jpg

In analysing our compliance risk factors, we will examine the various forms of Taxpayer Behaviour which result in:

Failure to Register

Failure to File Returns

Failure to Properly Report Tax Liabilities

and

Failure to Pay Taxes When Due


Compliance strategy based on attitude l.jpg

ATTITUDE TO COMPLIANCE the various forms of Taxpayer Behaviour which result in:

High

Do Not Want To Comply But Will If Given Due Attention

Consistently Succeed In Complying

Strategies Aimed at Creating Downward Pressure

Make It Easier To Comply

Low

Compliance Strategy based on Attitude

COMPLIANCE STRATEGY

Have Decided Not To Comply

Use The Full Force Of The Law

Enforce By Detection And Action

Level of Compliance Cost

Try To Comply But Do Not Always Succeed

Assist In Complying


Strategic objectives l.jpg
Strategic Objectives the various forms of Taxpayer Behaviour which result in:

Tax Administration

Collect the Revenue Due

EFFICIENCY

(Cost of Collecting)

EFFECTIVENESS

(Equitable Collection Systems)

IRD

CD

Improve Compliance

Service

Education

Enforcement

TAAD

TAD

Improve Information and Communication Technology Processes

TASD

Improve Organization and Management

ODG


Compliance objective l.jpg

Tax Administration the various forms of Taxpayer Behaviour which result in:

Collect the Revenue Due

EFFICIENCY

(Cost of Collecting)

EFFECTIVENESS

(Equitable Collection Systems)

IRD

TAAD

CD

Service

Education

Enforcement

TASD

ODG

TAD

Compliance Objective

  • Taxpayer Service

  • Cashiering System

  • “Floor walking”

  • Forms Completion

  • Taxpayer Accounts

  • Taxpayer Education

  • Taxpayers Surveys

  • Payment Facilitation

  • Refund Processing

  • Objections Processing

  • Taxpayer registration

  • Cashiering

  • Taxpayer Service (SD&TT)

  • Payment Facilitation

  • Returns Processing

  • Taxpayer Assistance/ Education

  • Auditing

  • Enforcement

  • Risk management

  • Surveillance

  • Office Compliance

  • Field Compliance

  • Investigations

  • Street Surveys

  • Taxpayer Accounts

  • Line Officer

  • Operations

  • Cashiering

  • “Floor walking”

  • Forms Completion

  • Trade Facilitation

  • Taxpayer Education

  • Taxpayer Surveys

  • Payment Facilitation

  • Taxpayer Audit

  • Taxpayer Assessment

  • Audit Selection & Review

  • Audit Services

  • Excise Operations

  • Tax Fraud Investigation

  • Compliance (SD&TT)

  • ESOP, Superannuation Funds & Exempt Orgs. Review

Improve Compliance

  • Legal Support Services

  • Litigation

  • New/Amended Legislation

  • Taxpayer Registration

  • Integrated Research

  • International Relationships

  • Integrated Strategies

  • Integrated Projects

  • Agency Contact

  • Integrated Research Findings

  • Integrated Strategies

  • Integrated Projects

  • Physical Environment

  • Taxpayer Registration

  • Public Education

  • Public Relations

  • Public Surveys

  • Tax Help

  • Taxpayer Education

  • Tax Admin Website

  • Professional Hearings

  • Service Standards

  • Independent & Professional Case Judgement

  • Investigation/Review of Waiver Applications


Technology objective l.jpg

Tax Administration the various forms of Taxpayer Behaviour which result in:

Collect the Revenue Due

EFFICIENCY

(Cost of Collecting)

EFFECTIVENESS

(Equitable Collection Systems)

Technology Objective

IRD

TAAD

CD

  • ITSTS

  • Cashiering

  • Risk Analysis

  • Brokers

  • Manifest

  • Import Processing

  • Export Processing

  • Auditing

  • Warehouse Operations

  • Business Process Re-engineering

  • Refunds Processing Objections

  • Returns Processing

  • Expenditure Accounting

  • Revenue Accounting

  • E- Transactions/ Payments

  • ESOP

  • Superannuation

  • Exempt Organizations

  • Valuation

  • Cashiering

  • Tax Fraud Investigations

  • ITSTS

  • Cashiering

  • AMVS

  • MV Title Processing

  • Driver’s Licence

  • Property Tax

  • TCC

  • TRN

  • Business Process Re-engineering

  • Refunds Payment Processing

  • Compliance

  • Taxpayer Accounting

  • Fact of Filing

  • Fact of Registration

  • Expenditure Accounting

  • E- Transactions/ Payments

  • ITSTS

  • GCT Registration & De-Registration

  • Classification

  • Audit

  • Audit Review

  • Assessment

  • Valuation

  • Business Process Re-engineering

  • Passenger/Baggage Processing

  • Refund Processing

  • Expenditure Accounting

  • Revenue Accounting

  • E-Transactions/ Payments

Improve Information and Communication Technology Processes

  • ITSTS

  • Administrative Systems (including HRMIS, document Management, Procurement, Inventory)

  • Taxpayer Data Base- TRN System

Business Process Re-engineering

Business Intelligence System

Directorate-wide Internal Electronic Communication

  • ITSTS

  • Waiver Information System

  • Business Process Re-engineering

  • ITSTS

  • ICT Policy

  • Tax Revenue

  • Tax Base

  • Computerized Integration of Core Systems (ICTAS)

  • Legal IS

  • Expenditure Accounting

  • Business Process Re-engineering

  • Intranet

TASD

ODG

TAD

ITSTS Internal Technical & Service Tracking System


Organization and management objective l.jpg

Tax Administration the various forms of Taxpayer Behaviour which result in:

Collect the Revenue Due

EFFICIENCY

(Cost of Collecting)

EFFECTIVENESS

(Equitable Collection Systems)

  • Issues Common to all Departments

  • HR Plan

  • Right-functioning/role clarification and Integration

  • Right sizing

  • Job rotation

  • Career development

  • Performance management

  • Quality review

  • Supervision

  • Strategic and annual plans

  • Integrated planning and control

  • Job evaluations and descriptions

  • Space Management

Issues Common to all Departments

Issues Common to all Departments

Issues Common to all Departments

Issues Common to all Departments

Issues Common to all Departments

Organization and Management Objective

IRD

TAAD

  • Core Activity Training

  • Orientation

  • Line Officer

  • Cashiering

  • Auditing

  • Cargo Processing

  • Passenger/Traveling Processing

  • Warehouse Operations and standards

  • Investigations

  • Foreign Languages

CD

  • Core Activity Training

  • Orientation

  • Compliance Officer

  • Taxpayer Accounting

  • Taxpayer Service Collections

  • Cashiering

  • Revenue Accounting

  • Core Activity Training

  • Orientation

  • Audit

  • Assessment

  • Valuation

  • Tax Fraud Investigation

  • Returns Processing

  • Audit Services

  • Cashiering

  • Registration

  • Risk management

Improve Organization and Management

  • HRM policy

  • HR plan (Tax Admin)

  • Staffing control

  • Code of Conduct

  • Operations oversight

  • Performance incentive scheme

  • Executive management development

  • HRM oversight

  • Career paths

  • Classification equity

  • Functional integration

  • Branding of Tax Admin

  • Space planning policy

  • Core Activity Training

  • Orientation (Tax Admin, TASD)

  • “Across Departments”

  • Supervisory

  • General Management

  • Training Systems

  • Training of Trainer

  • Taxpayer Registration

  • Core Activity Training

  • Orientation

  • Appeals Officer

TASD

ODG

TAD


Slide18 l.jpg

Identify critical areas of success and set targets the various forms of Taxpayer Behaviour which result in:

For consistency track targets over a period of time


Developing the strategic direction within the jamaican tax administration l.jpg
Developing the strategic direction within the Jamaican Tax Administration

Key terms

Road Map

Strategic/Corporate Plan

Operational Plan

Performance management system


Slide20 l.jpg

The reporting process – monthly and quarterly Administration

Structured format for data capture

Template used throughout departments

Written analysis of data accompany report

Reports signed by respective Commissioners

Quarterly stand-up reviews

Evaluation of Tax Administration Performance


Slide21 l.jpg

Weights are applied to outputs Administration

Need for more than 1 measure of performance

Evaluation of Tax Administration Performance



Some criteria for an effective staff appraisal system l.jpg
Some Criteria for an Effective Staff Appraisal System Administration

Staff performance must be aligned to the strategic objectives of the organization

Must be timely and consistent

Must be objective and transparent


Measuring staff performance within the jamaican tax administration l.jpg
Measuring staff performance within the Jamaican Tax Administration

  • Each operational plan has a measurable component

  • Individual plans have key results areas (KRA’s) which are aligned to unit plans

  • Additional indicators discussed within departments


Performance appraisal system l.jpg
Performance Appraisal System Administration

  • Starts by identification of deliverables in departmental plans

  • Development of Section/Unit plans and then individual plans

  • KRA’s taken from individual workplans plans and form the base of the performance appraisal document


Performance appraisal system26 l.jpg
Performance Appraisal System Administration

  • Performance target are discussed jointly with Supervisor and desired results identified.

  • Performance plan has five parts

    • KRA’s

    • Employee Performance Factors

    • Supervisory Performance Factors (where necessary)

    • Performance Consequences

    • Training and Development


Performance appraisal system27 l.jpg
Performance Appraisal System Administration

  • 2 reviews done annually – interim 6 months and end of year

  • Overall score assigned

  • Standard set –at least 85% of staff obtain 70% or more on PER


Link with organizational performance l.jpg
Link with Organizational Performance Administration

  • Template developed to align staff performance with that of the departments


Strengths of the system l.jpg
Strengths of the System Administration

  • Incremental improvements in organizational review process

  • Increased communication to staff members

  • Some aspects of data collection is done

  • Reliance on data from ICTAS (development of data warehouse)


Strengths of the system31 l.jpg
Strengths of the System Administration

  • Willingness to benchmarking to try to improve on adequacy of measures

  • Quality assurance mechanism embedded in process


Weaknesses of the system l.jpg
Weaknesses of the system Administration

  • Inconsistent and insufficient data collection

  • Inadequate feedback

  • Lack of in-depth analysis of trends to adequately inform the decision making process

  • Lack of soundness/adequacy of measures


Weaknesses of the system33 l.jpg
Weaknesses of the system Administration

Insufficient Communication

Timing – completion of strategic direction, completion of PER’s

Insufficient documentation of reports

Inconsistencies – No sanctions for department failure but sanctions for incompletion of PER’s


ad