Andrea Resca Luiss Guido Carli, Ce.R.S.I., Rome IRSIG-CNR, Bologna aresca@luiss.it

1. 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 aresca@luiss.it

2. 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)

3. 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)

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

5. The management of tax returns before and after 1997 reforms Before 1997: • 12 tax-returns handling Centres snow under with a backlog of 20.000.000 cases to deal with • About 44.000.000 paper forms to be manage • 3.200.000 tax litigation pending cases Today: • The closure and disposal of 10 tax-return Centres since 2001 (400.000 square metres of accommodation space savings • The elimination of data acquisition costs since 2000 • The on-going reduction of 6.000 human resources

6. 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). Table n. 2: Returns sent to the Revenue Receipts Agency in 1998 and 2004 by Entratel (the e-filing system dedicated to mediators)

7. 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.

8. 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

9. 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

10. First-Order Governing Second-Order Governing Meta-governance Diversity the subdivision of the e-filing system into Fisco Online, Entratel and Siatel Hierarchical The Hierarchical governing mode is preponderant with intermediaries Costs re-allocation Taxpayers shoulder a large part of the costs due to the introduction of the e-filing system Dynamics flexibility in the use of the mandatory method of on-line document transmission according to different categories 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 New equilibrium There is an equilibrium between the Tax Agency and Communes are more equilibrated and win-win solutions have been adopted 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 Complexity on-line document transmission and electronic identification involves increase complexity for taxpayers and a reduction in complexity for the Tax Agency Co-governing Co-governing prevails in the relationship with other public administrations 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.

11. 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