Transcript FTAA.ecom/inf/146 June 5, 2002 Modernizing Chile's

Public
FTAA.ecom/inf/146
June 5, 2002
Original: Spanish
Translation: FTAA Secretariat
Modernizing Chile's Internal Tax
Service
1990 – 2001
e-Government

Presidential Directive (11 May 2001)
Scope of Development of e-Government
Taxpayer Services
Good
Governance
Consolidation of Democracy
Guiding Principles
e-Government Projects Should:
A.
B.
C.
D.
E.
Transform relationship with taxpayers
Be accessible to all
Be user-friendly
Offer more advantages
Ensure security and privacy and keep a log of
visits
F. Strengthen the private sector’s role
G. Encourage decentralization
H. Promote e-competition
Four Phases in the Evolution of eGovernment

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
Presence: Provide citizens with information on the
Internal Tax Service (SII)
Interaction: Communication between the SII and the
public
Transactions: Introduction of e-relations
Transformation: Provision of online services
Case Study:
Chile's Internal Tax Service
Diagnosis: Problems in Work Methods



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
Emphasis on knowledge and experience over management
Excessive hierarchization
Need for procedures manuals
Failure to question procedures
Growing backlog
Modernization Strategies
Mission Statement:

The Internal Tax Service is responsible for
implementing and managing the internal tax
system, for reviewing taxpayers compliance
with tax rules, and for making it easier for
them to comply with these rules.
Modernization Strategies
Strategic Objectives for 2000-2006:


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
To reduce tax evasion.
To encourage taxpayers to opt for the Internet when dealing
with the Internal Tax Service
To improve human resource management
To develop and strengthen capacity for innovation
Process Reengineering
Main processes
 Taxpayers' completion of initial registration steps ("life
cycle")
 Tax courts
 Income and VAT operations
 Simplified penalty plan, etc.
Restructuring Criteria
Simplification
Service-oriented approach toward taxpayers
Making the best possible use of the allocated resources rather
than requesting budget increases
Online processes
Internet: A Strategic Option of the SII
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
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
Processing large numbers of taxpayers
Direct relationship, without intermediaries
Less time devoted to each taxpayer
Free services and software on the website
General information, regulations, taxpayer standing, news
Innovations Being Developed



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Requirement that taxpayers complete initial
registration steps ("life cycle") on the Internet site,
except for initial notification of employment and
application for RUT ("taxpayer unique number")
Implementation of electronic invoicing
Changing property information over the Internet
Consultations on diverse property issues
(assessments, appraisals, etc.) and modification of
records over the Internet
Advantages of the Internet for the SII
 Savings in:
Physical infrastructure
Distribution of forms
Reception of forms
Data entry
 Better use of human resources
- auditors
 Consistent information across databases
 Assurance of accuracy of information
 Timeliness of information
 Transparency of the system
Benefits for Taxpayers
SII proposes a sample tax return
 Payment of taxes online
 Longer deadlines for taxpayers who file their returns over the
Internet
 Expedited tax refunds
 Online filing of tax returns
 Online consultation of grounds for challenging SII decisions
 Online correction of returns (saves time)
 Retrieval of property valuation certificates
 Retrieval of duplicate copies of real-estate-tax payment bulletin
 Consultation of real-estate background records

Timeline of Implementation of New ITs at the SII
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1993: Adoption of open technology (Unix, TCP/IP) and relational
databases
1995: Adoption of the Internet as a strategic technological platform for
internal communications and communications with taxpayers
Oct. 1995: Website inauguration
May 1997: First transactions (consultations on proceeds and income)
March 1998: Receipt of sworn statements
April 1999: Receipt of income tax returns
May 1999: Receipt of VAT statements
April 2000: Ability to receive large numbers of income and VAT
statements
April 2001: Development of already-completed income statements
INCOME STATEMENT: Paper-Based Process
4.- Turn in to bank
1.- Design
and print
forms
2.- Distribute
forms
3.- Complete
form
Total Time:25 days
5.- Sorted in
clearinghouse
10.- Entry into
SII Database
9.- Correction
of errors
8.- Verify
data entered
7.- Data entry
6.- File with SII
Online Electronic Payment Process
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Authenticate identity at www.sii.cl with password or digital
certificate
File tax return or payment order
Select type of payment
Specify bank or credit card
Authenticate identity with electronic banking code or
information from card
Confirm online transaction
Obtain bank certificate
Obtain SII certificate
Income statement: Process Via the Internet (Simplified)
SII
Taxpayers
Statement
Debit Order
Debit
Notification
Statement
Information
Total time < 12 hours
Unique Tax Account
Deposits
Bank Executes Debit Order
Deposit
Report
Debit Order
Treasury
No. of Users (thousands)
Users with Passwords to Enter www.sii.cl
1,600
1,469
1,400
1,200
1,000
800
800
600
400
200
130
-
23
1997
1998
1999
2000
2001
Nov-01
Oct-01
Sep-01
Aug-01
Jul-01
Jun-01
May-01
Apr-01
Mar-01
Feb-01
Jan-01
Dec-00
Nov-00
Oct-00
Sep-00
Aug-00
Jul-00
Jun-00
May-00
Apr-00
Mar-00
No. of Visits (Millions)
Monthly Visits to www.sii.cl
16
14
12
10
8
6
4
2
0
INCOME STATEMENT: Results and Evolution
1999-2001
Paper
100%
Internet
5.2%
25.7%
80%
39.9%
60%
40%
94.8%
74.3%
61.1%
20%
0%
1999
2000
2001
INTERNET: Some Figures for 1999-2001
Percentage Increase in Statem ents Filed
Returned Electronically (Without Paym ents)
80
%
60
Sw orn Returns
40
Income
20
0
1999
2000
Year
2001
Internet: Additional Considerations



Greater transparency (clear instructions, uniform
rules, structured procedures, tracking)
The Internet improves on paper-based
procedures
The Internet transforms and revolutionizes the
relationship between taxpayers and the tax
administration
Issues Still Unresolved
 Coordination of strategies for, and the pace of,
modernizing state institutions involved
 Capacity to secure resource commitments for
medium-term plans
Final Comments
Key factors in the modernization process
Clear and effective leadership.
Formulating a strategic plan, and following through
on it, have been essential to the success registered so
far in modernizing the institution.
The organization is familiar with and shares the
strategic objectives identified, as well as the strategies
and policies that have been formulated.