Revenue Development Foundation. 20,000 registered users helping support compliance and promote responsible investment.

Transcription

1 M O B I L I S I N G G O V E R N M E N T R E V E N U E. Revenue Development Foundation PROGRAM STRATEGY 2020 DRAFT Ver.2e, Updated May 2017 RDF is a non-profit consultancy group which supports low-income governments with technical assistance to enhance revenue collection and public administration efficiency. RDF s mission is to use IT systems to support administration of natural resources and urban areas in order to ensure effective, sustainable, transparent and accountable mobilization of revenues. PROGRAM STRATEGY 2020 RDF s goal is to help governments mobilize US$ 2 Billion cumulative revenues by 2020 in 12 low-income countries across 7 sectors, made accountable and transparent through RDF systems. Public data portals should have a community of 20,000 registered users helping support compliance and promote responsible investment. Strategic Objectives: 1. Enhance Revenue and Efficiency in Natural Resource Administration 2. Improve Government Ability to Enforce Tax and Payment Compliance 3. Increase Local Government Revenue from Property Tax and Business Licensing 4. Ensure Transparency of License and Payments Data 5. Process Revenues of US$ 2 Billion Cumulative by 2020 W W W. R E V E N U E D E V E L O P M E N T. O R G

2 CONTEXT Natural resources are a source of significant revenue for low-income countries, but managing natural resources is often accompanied with deep-rooted challenges, including sustainable resource management, negotiating foreign investment, saving and spending revenue for pro-poor growth, determining wealth redistribution and preventing conflict. In developing countries, revenues from natural resources are often not effectively collected, administered or distributed. In response, RDF has developed a robust platform for government license and payment management for the mining and forestry sectors. Effective tax administration is a major challenge, in particular in economies that are largely informal. Tax participate rate is very low, and taxpayers who try to comply are facing bureaucratic barriers and limited information on requirements. Tax administrations often operate without the necessary interface and use of data from other institutions, in order to address the correct tax payers and increase the tax base. RDF has developed a system to allow collating all taxpayer transactions in order to better assess risks and target tax audits. Local government s capacity to mobilize their own resources is a crucial aspect of successful decentralization and democratic governance. In an informal economy, property tax may be applied progressively and be the most sustainable source of revenue for local governments. Local authorities in low-income countries do not effectively take advantage of this source of income and consequently struggle to finance improved public services. Local governments also frequently lack citizens confidence in the way they manage revenue. RDF has developed a system for property taxation and business licensing, and a proven methodology using a combination of pointsbased and market-based valuation methods. RDF systems are vehicles to reduce corruption, improve public confidence in authorities and increase coordination between government bodies. Transparency of information can also improve public and stakeholder engagement with public administration and apply domestic pressure on ensuring its efficiency through accountability mechanisms. RDF has pioneered the use of data repository portals that publishes government administrative data on licenses and payments and makes it available for industry stakeholders, civil society and the public. BACKGROUND OF RDF RDF was established in 2009, with a focus on implementing a UNDP-funded Mineral Rights Administration Project with the Government of. RDF also provided support to revenue mobilization for two city councils in, developing a proven methodology and software. During 2010, RDF generated results that attracted funding support from the EC and GIZ. In 2011, RDF s activities in helped record over US$ 25 million in government revenues. In 2012, the Minister of Mineral Resources launched the Government of Online Repository, allowing public access to data directly from the administrative system that was used to manage mining licenses and payments. RDF started preparing for an expansion of the programme. In 2013, RDF expanded to Liberia and Malawi, and ended the year with a client base of 10 government institutions. In 2014, RDF expanded further to, in the mining sector, and to Cameroon, the first project where RDF worked entirely on tax administration. In 2015, RDF expanded further to Zambia, under a EC consortium project and, with support from the Government of Australia. By the end of the year, RDF was active in seven countries across 5 sectors. RDF reviewed organizational capacity and implemented an ERP system for internal financial and project management. In 2016, Government institutions were strongly supportive of the RDF concept. Interest in RDF programme support is now widespread across Africa. This programme document will be continuously updated to reflect the global programme taking shape. In early 2017, RDF expanded to Guinea and Afghanistan. ii

3 STRATEGIC OBJECTIVES 1. Enhance Revenues and Efficiency of Natural Resource Administration Effective and accountable administration of natural resource rights is crucial for attracting high-quality long-term investments required to make the most of valuable natural resources, while ensuring that benefits reach the citizens. RDF s objective is to further enhance accountable administration of concessions, licenses and permits, following efficient and transparent processes. RDF has a mature system for supporting license management. The XCAS Administration System is a flexible solution for managing the full life-cycle of licenses from applications to payments, royalties and exports. The system comes is several configurations, adapted for the mining (MCAS), Forestry (FCAS), Environment (ELAS) and Agriculture (ACAS) sectors. XCAS can have separate workspaces, managing several datasets in the same system, for example for mining licenses in one workspace and exporters permits in another. Systems Mining Cadastre Administration System (MCAS) manages the full life-cycle of mining licenses, and is configurable for the normal laws and regulations regarding license validity and fees. RDF s approach supports the use of government systems for the International Extractives Transparency Initiative (EITI) reconciliation of payments data. Countries Liberia Zambia Forestry Concessions Administration System (FCAS) increases accountability, transparency and confidence in government s administration of forestry rights. FCAS seeks to contribute to control deforestation, encourage afforestation and increase sustainable government revenue. RDF s approach also supports key requirements of international forestry initiatives, such as Forest Law Enforcement, Governance and Trade (FLEGT) and Reducing Emissions from Deforestation and Forest Degradation, through forest verification and chain-of-custody control of forested goods. Fisheries License Management System (FishCAS) Manage fishing licenses and permits, monitor vessels and report catchment. Oil and Gas Concessions Management (OGAS) Manages block tenders and contract terms Environment License Administration System (ELAS) - The Environment License Administration System (ELAS) supports government facilitation of environment impact assessment, licenses and permits. RD Quantum Mobile App allows users to access their data from their mobile and report from the field to be filed in xcas Malawi - 2.Improve Government ability to enforce tax and payment compliance Enforcing tax and payment compliance requires collaboration and data sharing across key institutions. RDF s objective is to provide payment systems and tools to integrate government systems, improving data sharing and compliance. In order for finance ministries and revenue authorities to be effective, they require control of their taxpayers iii

4 database, integration with other government systems and systematic identification of non-compliance. RDF has expanded its focus on non-tax payments to risk management and taxpayer registration, with a long-term goal to develop a fully integrated tax administration system. Systems RD Fusion Data Integration and Risk Management allows integration of all records related to tax declarations and payments for all tax registered entities. The risk management module allows indicators to be defined, ranking companies in terms of compliance risk, helping identify companies to audit. Countries Cameroon Guinea NTRS Payment System - ensures an efficient and accountable revenue collection process, in particular for non-tax revenue. The system includes an API function that allows receiving Orders to Pay electronically directly from xcas or third party systems. RD Taxpayer Registration system manages registration of taxpayers and issuance of tax identification numbers. The application can either be used as stand-alone or integrated with other tax administration systems, supporting RESTful API service for TIN lookups and verification from government websites and xcas systems. (under development) 3.Increase Local Government Revenue from Property Tax and Business Licensing Property tax is a progressive tax suitable for an informal economy where buildings constitute the only visible and known assets in society. Property tax helps sustain finances for local government service delivery. Over the last decade, responsibility for key primary services has been devolved to local government, seldom with the adequate financial resources transferred from central government. When mobilizing tax from its citizens, local councils reinforce democratic participation, having to convince its tax payers to participate in return for offering citizens valuable services. RDF guides local councils through a proven methodology for collecting property tax. RDF s objective is to provide an affordable service to local councils with significant increase in revenue and a measurable increase in compliance and sustainable capacity. Systems REMOP Local Government Revenue System stores all property assessment data and calculates property tax due, manages arrears and appeals, as well as business licenses. Countries Malawi iv

5 4.Ensure Transparency of Licenses and Payments Data was the first to publish the complete mineral concession registry and all related payments online using RDF s Online Repository portal in Five governments now have such a portal, publishing data directly from government systems to stakeholders and the public.. RDF s objective is to improve the efficiency of public administration systems by allowing stakeholder feedback and participation in transparent processes. Systems Online Repository Transparency Portal publish data from xcas systems to stakeholders and the public, with license owner details, application and license details, as well as all payments. Integrates with any systems using the RDx data service. Countries Liberia Malawi Customs Verification Portal allows customs officers ability to verify exporters documents when declaring extractives goods from low-income countries using RDF systems - 5.Process Government Revenues of US$ 2 Billon Cumulative by 2020 RDF s overall target is to support effective administration recording in excess of US$ 2 Billion in government revenues on a cumulative basis until RDF will publish quarterly impact reports describing the results towards this target. Results Dec-16 Dec-17 Dec-18 Dec-19 Total Revenue Impact Result payments processed by government clients through RDF systems US$ 206m OPERATIONAL METHODOLOGY / DELIVERY APPROACH Long-term engagement in-country: providing government institutions with experienced specialists, processes and information technology solutions, committed to work with the government long-term. v

6 RDF Revenue Specialists are embedded in government institutions, working on a day-to-day basis with government staff to ensure incremental changes and step-by-step improvements. Developing government staff capacity to operate more effectively in a structured manner, with less discretionary powers. Our systems are designed to streamline administration processes and facilitate the workflow required for efficient and service-oriented management of services to citizens. This ensures accountable recording of payments and integration with other existing government systems, increasing compliance. Software systems provided on a license-free basis and software usage rights are handed over to government without any recurrent license costs. Latest technology used in all systems with process-driven functionality, user friendly and intuitive interface design and purposeful outputs. Latest web-based technology with GeoServer GIS functionality and RDx integration standards using RESTful APIs. Mobile apps on Android platform. RDF System Specialists provides training and technical support to ensure sustainable system implementation. We continuously advance and develop our software systems on the basis of government requirements, making it lightweight yet powerful for public administration in low-income countries. Progress Reports and weekly progress cards are presented to each project stakeholder group, ensuring effective monitoring and evaluation. vi

7 COUNTRIES AND RESULTS Country Sectors Results Dec-16 Liberia Cameroon Malawi Zambia Guinea Afghanistan Transparent Dec-16 # Institutions Dec-16 Mining, Environment, Forestry, Tax, Local Government US$ 185m US$ 185m 4 14 Mining, Tax Tax Forestry Mining, Oil and Gas Mining Mining Mining Mining US$ 7m US$ 7m 2 2 US$ 0m US$ 0m 1 1 US$ 2m US$ 2m 1 2 US$ 7m US$ 7m 3 3 US$ 3m US$ 2m 1 2 US$ 0m US$ 0m 1 1 US$ 0m US$ 0m 1 2 US$ 0m US$ 0m 1 0 # Systems deployed Dec-16 Total Impact US$ 207m US$ 206m vii

8 FUNDING PARTNER GIZ has funded the Mineral Rights Administration Support project in, Liberia and, as well as Revenue Data Integration pilots and projects. GIZ also funded RDF s local government programme in Malawi. The Government of Australia Department for Foreign Affairs and Trade (DFAT) have funded the Mineral Rights Administration Support Project in IFAD has funded parts of RDF s Local Government Revenue Mobilization Programme in Sierra Leone, covering 7 local councils. UNDP funded the first phase of the Mineral Rights Administration Project in. RDF has extensive working experience with UNDP. The European Commission funded the second phase of the Mineral Rights Administration Project in. RDF was supported under the 10 th European Development Fund (EDF). EC also funds our project in Zambia, implemented in a consulting consortium. ACP-FLEGT Support Programme, managed by FAO with EC funds, funded the first and second phase of the Forestry Rights Administration System project in. The World Bank supported the preparatory review of the Mineral Rights Administration Support Project in Liberia. The Norwegian Ministry of Foreign Affairs funded the Forestry Rights Administration Support Project in Malawi. The UK government Department for International Development has funded some activities in and Afghanistan, through their consulting partner ASI. viii

9 CONTACT INFORMATION For further information, please contact: General inquiries: RDF HQ - Managing Director, Aasmund Andersen, aandersen@revenuedevelopment.org - Finance and Operations Manager, Stefka Iseli, siseli@revenuedevelopment.org - Programme Manager Nolwenn Hemberger, nhemberger@revenuedevelopment.org - Programme Officer, Sanna Hermansson, shermansson@revenuedevelopment.org - Programme Officer, Samuel Koli, skoli@revenuedevelopment.org - SenioRevenue Specialist, Robert Kul, rkul@revenuedevelopment.org - Revenue Specialist, Vera Magero, vmagero@revenuedevelopment.org Liberia - Senior Revenue Specialist, Sidy Ouattara, souattara@revenuedevelopment.org - Revenue Specialist, Prudence Ukwishatse, pukwishatse@revenuedevelopment.org - Senior Revenue Specialist, Myriam Amadou, mfamadou@revenuedevelopment.org Zambia - Manager, Ishmael Abeyie, iabeyie@revenuedevelopment.org Annex 1: RDF Key Experts Name Position Experience (years) Education Specialist Areas Relevant Languages Aasmund Project Mgt Managing Advisor 15 Cand. Polit. Social Science Andersen Capacity Dev. English VG Paul Devries Senior Advisor 25 MSc Geology and Physical Mining and Geography Environment English Native Pierre-Pascal Gendron Senior Advisor 20 Phd Economics Paul Fish Senior Advisor 24 Chartered Surveyor Tax Administration Local Gov. Valuation Bernd Eckhardt Senior GIS Expert 15 MSc Geography GIS Nolwenn Marnet Irakli Kobiashvili Sanna Hermansson Programme Manager Senior Software Engineer 7 MSc Mathematics Project Mgt 10 BSc Computer Science Programme Officer 5 Msc Development Studies Systems Design & Development Project Implementation English VG French - Native English Native Krio - G English VG German Native French Native English VG German - G English VG English Native French - G Full expert profiles are available upon request. ix