CIAT EXECUTIVE SECRETARY'S REPORT ON THE INNOVATION IN TAX ADMINISTRATION AWARDS PROGRAM EDITION

Transcription

1 CIAT EXECUTIVE SECRETARY'S REPORT ON THE INNOVATION IN TAX ADMINISTRATION AWARDS PROGRAM EDITION A. CIAT INNOVATION AWARD PROGRAM BASES In 2008 an annual CIAT awards program was instituted as a way of acknowledging good innovative practices implemented by tax administrations from member countries, which contribute to the enhancement and attainment of the necessary attributes for a sound and effective tax administration, such as integrity and transparency, efficiency and effectiveness. The first awards were presented at the 2009 General Assembly in the Dominican Republic. Awards recipients are announced by the President of the CIAT Executive Council at the General Assembly Administrative Session for the corresponding year and presented to the winners at the closing ceremony. Purpose Identify and recognize innovative good practices that result in positive impacts in the realm of tax administration. Disseminate successful innovation programs. Generate synergy in the exchange of successful experiences. Awards In 2009 and 2010 awards were presented in three categories: 1) integrity and transparency, 2) efficiency and 3) effectiveness. However, at the request of Executive Council members at the April 2010 meeting, it was decided to eliminate award categories and simply select the top three innovative practices. This would provide greater equity in selecting the best innovative ideas regardless of their nature. As a result, this methodology was applied to the presentation of awards in 2011 and In addition, the Council redefined the term innovation. For the purpose of this contest, innovation will be defined as a new process that may change or improve an existing one and which may cause a significant positive impact on the tax administration. An innovation may be large or small, and originate a totally new process. Or, it may simply implement changes in an already established process, provided that this change has a significant impact that may be measured in qualitative or quantitative terms and be immediately applicable. During the General Assembly, up to three awards can be presented to member countries in recognition of good innovative practices implemented by the tax administrations that may result in achieving the necessary attributes of a sound Page 1 of 7

2 and effective tax administration. The innovative practice may be applied in any area of the tax administration. It may be an internal process or within the community of taxpayers and the public in general. The internal process of the tax administration may be in any function, human resources, training, and taxpayer assistance, among others. With respect to taxpayers, these processes may be in the area of information, returns filing, payment processes, customer assistance, etc. Application procedure and requirements For the 2013 contest, a member country may file up to 2 entries. The proposals should fulfill the following requirements: It should be formally presented by the Representative of the CIAT member country. The practices must be in operation and show proven and verifiable results. The practice must show and document an effective contribution to the improvement of performance of the tax administration in terms of integrity and transparency, efficiency and/or effectiveness. B. APPLICANT COUNTRIES IN THE FIFTH ANNUAL PROGRAM, SELECTION PROCESS AND CRITERIA EMPLOYED The CIAT-sponsored call for the fifth annual Program awarding Innovation in Tax Administration closed on December 15, A total of 5 submissions were received from three member countries. They are: Brazil (2), Chile (2), and Peru (1). The submissions being considered were received at the CIAT Executive Secretariat in the set period and in conformity with the established rules. Subsequently, a Review Group composed of all CIAT Directors and Heads of Missions from France, Italy and Spain was organized to review, analyze and report on the innovation submitted. The conclusions reached on those most deserving of recognition were obtained by consensus. Final approval and selection of the award recipients will be determined by the Executive Council just prior to the General Assembly. When deemed applicable, the Council may declare less or more than three recipients. Evaluation Criteria As previously stated, at the April 2010 Executive Council meeting, Council members reviewed and modified several aspects of the selection and evaluation Page 2 of 7

3 criteria. Awards will be granted to the best three works entering the contest, and not by categories. For purposes of this contest, innovation will be defined as a new process that may change or improve an existing one and which may cause a significant impact on the tax administration. An innovation may be large or small, originating a totally new process. Or simply it may implement changes in an already established process, provided that this change has a significant impact that may be measured in qualitative or quantitative terms and be immediately applicable. The innovative practices were evaluated according to the impact they caused on the tax administration. To this end, the following aspects were considered: Benefits obtained in terms of improved perception by society of the quality of service and image of the tax administration; Cost and time reduction achieved by the tax administration in executing its internal processes and by the taxpayers when complying with their tax obligations, provided such reduction does not negatively affect the efficiency and effectiveness of the tax administration; and, Better collection results, as a consequence, among other things, of increased qualitative and effective noncompliance controls and greater voluntary compliance with tax obligations. C. SYNOPSIS OF THE INNOVATIVE PRACTICES PRESENTED 1. CIAT Member Country Tax Administration: Federal Revenue Secretariat of Brazil - RFB Name of the Innovation Program: Change of strategy for selection and control of large taxpayers. 12/23/2009 Innovation is the creation of regional specialized teams for the selection and control of large taxpayers and selection criteria, optimizing works by exchanging experiences and expertise of auditors. 2. CIAT Member Country Tax Administration: Federal Revenue Secretariat of Brazil RFB Judgments of tax administrative appeals through Web conference. Page 3 of 7

4 11/24/2011 The innovation is the possibility of pronouncing tax administrative appeals sentences through sessions via Web conferences, allowing the participation of judges from different parts of the country without the need to travel. To this end, use is made of tools with special technological features that increase the quality and speed of communication, allowing judges to share files and desktops, and avoid printing documents when voting. 3. CIAT Member Country Tax Administration: Internal Revenue Service, Chile (SII) Electronic File Cabinet June 2010 The "Electronic File Cabinet" is a centralized computer system for processing information requests that works on the Internet and Intranet and allows for receiving, validating, assigning, managing, and responding through a safe download system, to information requests mainly from State agencies to the Director, Deputy-Director or Regional Directors of the SII. 4. CIAT Member Country Tax Administration: Internal Revenue Service, Chile (SII) Control of institutional projects (PMO) April 2011 The initiative involves the institutionalization of a methodology for monitoring and controlling projects (PMO). It is possible to be aware on a monthly basis, of the status of performance and implementation of institutional projects. 5. CIAT Member Country Tax Administration: National Superintendency of Customs and Tax Administration - SUNAT, Peru Systematization and continuous improvement of debt control processes (extensive control). Page 4 of 7

5 January 1, The initiative consists of changing the work approach in the Debt Control Section from one based on functions to one based on processes and results, thereby allowing for achieving better results in terms of productivity, efficiency and providing better services to internal and external customers. D. RECOMMENDATION FOR THE AWARDS The five innovative programs deserve recognition because they highlight appropriate achievements in the tax administrations of the CIAT member countries. The factor that distinguishes the recommended winners was the degree of innovation as currently defined and the magnitude and impact of their implementation. Finally, it is important to consider the possible adaptation of these projects in tax administrations with similar characteristics and needs. As noted earlier, successful practices will be announced during the Administrative Session of the General Assembly and the CIAT Executive Council President will present the awards to the respective representatives of the winning countries during the closing ceremony. The awards consist of a commemorative plaque to the winning country's tax administration, according to its contribution to the integrity and transparency, efficiency or effectiveness of the tax administration. The winning innovative practices will be posted on the CIAT Web site, along with all other entries. Based on the elements and criteria mentioned above, the CIAT Review Group of the Executive Secretariat determined and recommended that for 2013, the awards be presented for the following innovations: BRAZIL Tax Administration of the CIAT Member Country: Federal Revenue of Brazil - RFB Judgments of tax administrative appeals through Web conference. 11/24/2011 Page 5 of 7

6 The innovation is the possibility of pronouncing tax administrative appeals sentences through sessions via Web conferences, allowing the participation of judges from different parts of the country without the need to travel. To this end, use is made of special technological tools to increase the quality and speed of communication, allowing judges to share files and desktops, and avoid printing documents when voting. This system has resulted in travel costs and time savings of judges for attending these sessions; optimization of working hours (savings of 16 hours of work per judge for each trial); increase in productivity (at least 8 processes more in the same working period); reduction in the number of pending cases. It also helps the environment through the reduction of printed documents, reduction in the use of fuel and resulting pollution. This practice can be perfectly applied in other tax administrations with appropriate access to broadband Internet. The obstacle could be the legal requirement of a face-to-face meeting. CHILE Tax Administration of the CIAT Member Country: Internal Revenue Service, Chile (SII) Electronic File Cabinet June 2010 The "Electronic File Cabinet" is a centralized computer system for processing information requests that works on the Internet and Intranet and allows for receiving, validating, assigning, managing, and responding through a safe download system, to information requests mainly from State agencies to the Director, Deputy-Director or Regional Directors of the SII. One of the great advantages of this system is that it delivers massive and specific information while protecting the security of the data, since it identifies whoever has access to the reply, inasmuch as he must be authorized by the government institution wherein he works. The system has allowed for improving the quality, relevance, consistency, and compliance with current regulations and the standardization of responses to the other State agencies, by means of standardized and centralized processes for generating and validating the responses. In addition, it has reduced response times through centralized response boxes, in which responses can be safely accessed. Page 6 of 7

7 This practice is perfectly applicable in other tax administrations, with an appropriate level of development in the implementation of systems for supporting their administrative processes. Page 7 of 7