Tax Administration in the Digital Age: Challenges and Opportunities

Transcription

1 Tax Administration in the Digital Age: Challenges and Opportunities By Attorney Lanee Cui-David Deputy Commissioner, Information Systems Group Bureau of Internal Revenue The Philippines 1

2 Outline of Presentation I. Philippines at a glance II. Overview of the use of information technology (IT) in tax administration, background, recent digital developments III. Challenges, opportunities and strategy IV. Conclusion 2

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4 Philippines at a glance Location: South East Asia Archipelago: 7,107 islands Land mass: 300,000 square kilometers Capital: Manila Population: million latest UN estimates Climate: Tropical Languages: Filipino, English Literacy: 92.6% Monetary Unit: Philippine Peso 4

5 Philippines at a glance 5

6 OVERVIEW of the use of INFORMATION TECHNOLOGY (IT) in Tax Administration 6

7 The Bureau of Internal Revenue Mission Collect taxes through just enforcement of tax laws for nation-building and the upliftment of the lives of Filipinos Vision An institution of service excellence and integrity 7

8 The Bureau of Internal Revenue COMMISSIONER Planning & Management Service Large Taxpayers Service Project Management and Implementation Service DEPUTY COMMISSIONER OPERATIONS GROUP DEPUTY COMMISSIONER LEGAL GROUP DEPUTY COMMISSIONER INFORMATION SYSTEMS GROUP DEPUTY COMMISSIONER RESOURCE MANAGEMENT GROUP Customer Support Service Legal Service Info Systems Devt & Operations Service Human Resource Service Collection Service Internal Affairs Service Info Systems Project Management Service Finance Service Assessment Service Enforcement & Advocacy Service Revenue Data Centers Administrative Service Regional Offices 8

9 Use of IT in Tax Administration BACKGROUND Tax Computerization Project was undertaken Integrated Tax System (ITS) was implemented BIR website was launched 9

10 Use of IT in Tax Administration BACKGROUND Electronic Filing and Payment System was developed and introduced BIR expanded its eservices and developed to 2008 new systems 2013 ebir Forms System was developed and used 10

11 Recent Digital Developments Impact of Social Media Recent efiling Development Recent epayment Campaign and Channels 11

12 Recent Digital Developments - Social Media Campaigns 12

13 Recent Digital Developments STATISTICS OF ELECTRONICALLY FILED TAX RETURNS PER SYSTEM (efps & ebirforms) YEAR efps ebirforms TOTAL ,097 NA 29, ,270,452 NA 1,270, ,505,311 NA 1,505, ,952,293 2,510 1,954, ,287,087 6,563,925 9,851, ,304,254 13,243,832 17,548, ,847,263 15,032,711 19,879,974

14 Recent Digital Developments PERCENTAGE OF efiling OVER TOTAL FILING YEAR NO. OF efiled RETURNS (efps & ebirforms) TOTAL FILED RETURNS % OF efiled OVER TOTAL FILED RETURNS ,851,012 23,020,857 43% ,548,086 28,862, ,879,974 28,764,869 61% 69% Note: Source : ITS (Manual Filers). Based on Filing Date Run Date: Jan. 9, 2018 (Manual Filed Returns for Jan. to Dec. 2017)

15 Recent Digital Developments 50,000 0 Number of Transactions 146 3,568 31, No of Transactions increase of 2344% in 2016 compared to 2015 and 779% increase in 2017 compared to ,000,000 Amount of Collection 212,495 5,406, ,020, Amount of collection increased by 2444% in 2016 compared to 2015 and 862% increase in 2017 compared to 2016 Month/Year No. of Transactions Amount ,568 PhP 5,406, $ 103, ,373 PhP 52,020, $ 1,000, January 11,482 PhP 13,363, $ 256, Note: Converted to US Dollar (PhP to $1)

16 Recent Digital Developments CREDIT/DEBIT/ATM CARD ONLINE TAX PAYMENT 20,000 10, ,000,000 0 Number of Transactions 146 1,954 6,453 13,285 Oct-17 Nov-17 Dec-17 Jan-18 Amount of Collection 212,495 3,170,069 5,872,429 13,109, Oct-17 Nov-17 Dec-17 Jan-18 Credit/Debit/ATM Card Month/Year January Total Transactions Amount 6,453 PhP 9,254, $ 177, ,285 PhP 13,109, $ 252, Note: Converted to US Dollar (PhP to $1)

17 Recent Digital Developments PERCENTAGE OF epayment OVER TOTAL PAYMENT TRANSACTIONS YEAR NO. OF epayment TRANSACTIONS (in million) TOTAL PAYMENT TRANSACTIONS (in million) % OF epayment OVER TOTAL PAYMENT TRANSACTIONS % % % Note: Run Date: Jan. 4, 2018 (Years 2015 and 2016) Feb. 22, 2018 (Year 2017) 17

18 Use of IT in Tax Administration Electronic Tax Information System (etis) Optimization and Enhancements a web-based workflow-driven system developed to replace the 22-year old Integrated Tax System (ITS) Performance and other implementation issues will be resolved Incorporate enhancements that when implemented will allow shutdown of etis Integrate with eservices 18

19 Use of IT in Tax Administration Tax Reform for Acceleration and Inclusion (TRAIN) The goal of the first package of the Comprehensive Tax Reform Program (CTRP) or TRAIN is to create a simpler, fair, and more efficient system Lower Personal Income Tax Simplify Value Added Tax Simplify Estate and Donor s Tax Increase Excise Tax of Petroleum Products Increase Excise Tax of Automobiles Introduce an Excise Tax for Sugar Sweetened Beverages 19

20 in every CHALLENGE lives a greater OPPORTUNITY -Jeffrey Benjamin 20

21 Challenges and Opportunities CHALLENGES AND ISSUES Internet Speed and Cost Procurement People Upgrading And Integration of Systems Policy ebusiness Security Enterprise Risk, and Others 21

22 Challenges and Opportunities Impact of etis Optimization Challenges Project team need to be reorganized Optimization requires rearchitecting the code Opportunities Chance to involve more people in the organization allow incorporation of TRAIN impact to the new Core Tax Admin System Chance to conform with e-government Cloudfirst policy Chance to incorporate new data privacy and other security requirements Chance to conform with new DOF data dictionary and other standards 4/1/

23 Challenges and Opportunities Impact of TRAIN Challenges Lowering PIT, simplification of VAT and Estate/Donor s Tax, New Excise Tax and increase in existing ones affect processes, forms, codes tables used by eservices and Core Tax Admin Systems. einvoicing, ereceipting, ereporting Massive and Costly Info & Communications Technology requirement Opportunities Incentivise taxpayers with simpler forms and procedure and quicker cash refunds Chance to build a transparent, easier to use, secured, integrated systems using updated technology etis Optimization will allow incorporation of TRAIN impact to the new Core Tax Admin System Reduce TP dependence on paper receipt; Enhance capture of digitized detailed data; Enhance agency data insights & intelligence Increased effectiveness in tax administration 4/1/

24 Challenges and Opportunities TRAIN: einvoicing/e-receipting and esales Reporting 1 Support / Call Center VAT receipts The Difference Transaction is recorded in their Receipting Device, standard price generated by the system and receipt is printed Paper used to print receipts has a government seal on it Possible incentive fiscal rewarding system 2 3 Recording and transmitting sales data via GPRS/USSD Data Center Analytical Platform Customer Service Maintenance Centers Real-Time dashboards for high Government Officials Generate: reports for VAT refund third-party matching in case of tax audits/ assessments 24

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26 Conclusion 26

27 Never before in history has innovation offered promise of so much to so many in so short a time. - Bill Gates 27

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