Transcript CT e-filing using XBRL A first step towards radical

XML in UK IR e-business
services
Jeff Smith & Andy Greener
Inland Revenue
[email protected]
[email protected]
E-Services - The Wider Context
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Make the UK the best place to do business
Lower regulatory costs for business
Targets for making IR e-services available
Targets for take up
Enabling as well as regulating, customer focus
Working through intermediaries, finding the win: win:
win
IR has to offer e-services that customers WANT to use
IRS Williamsburg - April 2002
How are we going to do it?
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Build and learn
Use intermediaries (physical and software)
Collaborative approach to design
Services that are easy to use
Services that are reliable
Focusing on what saves business costs
Identifying where IR policy is a block to progress
Openness to radical re-think of our policy
IRS Williamsburg - April 2002
Collaborative Design
IRS Williamsburg - April 2002
What are we aiming for?
To transform our interactions with companies by
answering:
• How do we use eTechnology to add value to both
parties?
– (Make it easy to pay the right tax and file at the right time)
• How do we reduce the cost of compliance to all
parties ?
• What service offerings do customers want and when
do we plan to provide them?
A major improvement in our processes
IRS Williamsburg - April 2002
1 Million Years BE
(before ‘e’)
• PAYE - Pay As You Earn (EDI, bulk
data)
– Payroll tax
– Bureaux, large companies
• ELS - Electronic Lodgement Service
(EDI)
– Personal/self-employed only
– Agent filing only
– Expensive infrastructure
IRS Williamsburg - April 2002
XML: Stage One
• Self Assessment (SA) Year 1
– Personal/Self-employed return
– Started April 2000 for 99/00 tax year
returns
– Required client software on CD or
download
• Limited success
• PC/Windows specific
– Limited to “simple” cases
• Missing most of the optional schedules
– Standalone service
• Submissions direct to IR
– XDR-based Schema
IRS Williamsburg - April 2002
XML: Stage Two
• SA Year 2
– Web-form based, no additional s/w needed
– Still limited to “simple” cases
– 3rd party tax prep s/w vendors coming on
board
– Migration to UK Govt Gateway
– Still XDR-based
• PAYE Year 1
– Learnt from SA
• no client s/w necessary, and…
• Payroll s/w vendors brought on board early
– Use Govt Gateway from the outset
– W3C XML Schema-based
IRS Williamsburg - April 2002
Sidetrack: the UK Govt
Gateway
• Live in March 2001 (JIT for PAYE!)
• Centralised services
– Registration & enrolment (name/passwd or dig certs)
– Secure mailboxes etc
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Multiplexer for all XML messaging (in or out)
“Gateway” to the Govt Secure Intranet (GSI)
IR: GGIS to interface to back-end systems
Now moving to GSO (“Gateway II”)
– SOAP-based
– ‘Hub & spoke’ architecture for non-GSI-connected
orgs
IRS Williamsburg - April 2002
XML: Stage Three
• SA Year 3
– More SA supplementary schedules
– Moved to W3C XML Schema from XDR
• PAYE Year 2
– More forms coverage
• 15 forms in total, 6 Schemas
– Core data items Schema developed
• Use elsewhere in SA, CT, etc
• Still PAYE-oriented, needs some work
– Outgoing forms & notifications
• Utilises Gateway Secure Mailbox Service
IRS Williamsburg - April 2002
XML: Stage Four
(where to next?)
• SA Year 4
– More coverage
– Active encouragement to file on-line
– Pre-population of form data (general pre-pop
Schema)
• PAYE Year 3
– Further forms
– Financial encouragement for companies to use
• Company Tax (CT) e-Filing Pilot
– Payments & Liabilities already on-line in CT Portal
– Departure from “traditional” Schemas!
• Tax Credits System (NTC)
– On-line filing of Application form
IRS Williamsburg - April 2002
CT: Enter XBRL….
• Submission comprises:
– CT600 form plus various schedules
– Tax Computation
– Statutory Accounts and P&L
• XML Schemas
– Good at representing structured transactions (ie forms)
– Bad at representing “amorphous” data (ie reports)
• XBRL (eXtensible Business Reporting Language)
– Designed specifically for financial reporting
– “Slice’n’dice” data any way you like
IRS Williamsburg - April 2002
XBRL Essentials
• Version 2 (Dec 2001) looks viable
• Taxonomies are valid XML
Schemas (plus)
– “flat” Schema with additional Xlink
information
• Each data item has its own context
– Extract or reformulate easily
• Capable of encoding arithmetic
relationships
– “calculation” linkbases
• Can be localized easily
– “label” linkbases
IRS Williamsburg - April 2002
Longer Term Vision for e-Filing
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Fully electronic CT return
Single consolidated submission
Industry standard formats
Supports automated analysis
Supports online amendments
Offers prospect of closer
working
And also:
• Provide other methods for
smallest filers (e.g. online
interactive form)
<?xml version="1.0" encoding="UTF-8"?>
<xsd:schema targetNamespace="http://www.govtalk.gov.uk/CT”
xmlns:xhtml="http://www.w3.org/1999/xhtml" xmlns:link="http://www.xbrl.org/2001/XLink/xbrllinkbase"
xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:xbrli="http://www.xbrl.org/2001/instance"
xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns="http://www.govtalk.gov.uk/CT"elementFormDefault="qualified"><xsd:include
schemaLocation="CT600-XBRL-types.xsd" /><xsd:import namespace="http://www.xbrl.org/2001/instance" schemaLocation="xbrlinstance.xsd"/><xsd:import namespace="http://www.xbrl.org/2001/XLink/xbrllinkbase" schemaLocation="xbrl-linkbase.xsd" /><!-- All the
leaf nodes from the current IR format converted to XBRL items plus a minimum number of Tuples for the instancedocument as looked at so far-> <!-- element definitions --> <xsd:element id="ReturnType" name="ReturnType" substitutionGroup="xbrli:item"
type="returnTypeItemType"> </xsd:element> <xsd:element id="CompanyName" name="CompanyName" substitutionGroup="xbrli:item"
type="xbrli:stringItemType"> </xsd:element>
<xsd:element id="RegistrationNumber" name="RegistrationNumber"
substitutionGroup="xbrli:item" type="xbrli:stringItemType"> </xsd:element>
<xsd:element id="DistrictNumber" name="DistrictNumber"
substitutionGroup="xbrli:item" type="districtItemType"> </xsd:element>
<xsd:element id="UTR" name="UTR"
substitutionGroup="xbrli:item" type="UTRitemType"> </xsd:element>
<xsd:element id="AccountingPeriod" name="AccountingPeriod"
substitutionGroup="xbrli:item" type="APitemType"> </xsd:element>
<xsd:element id="Address" name="Address"
substitutionGroup="xbrli:tuple" type="xbrli:tupleType"> </xsd:element> <xsd:element id="Line" name="Line"
substitutionGroup="xbrli:item" type="xbrli:stringItemType">
<xsd:annotation>
<xsd:documentation>Address
line</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="PostCode" name="PostCode"
substitutionGroup="xbrli:item" type="xbrli:stringItemType"> </xsd:element>
<xsd:element id="PeriodCovered" name="PeriodCovered"
substitutionGroup="xbrli:tuple" type="xbrli:tupleType" > </xsd:element> <xsd:element id="From" name="From"
substitutionGroup="xbrli:item" type="xbrli:dateTimeItemType">
<xsd:annotation>
<xsd:documentation>Date of beginning of
period</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="To" name="To" substitutionGroup="xbrli:item"
type="xbrli:dateTimeItemType">
<xsd:annotation>
<xsd:documentation>Date of end of period</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="MultipleReturns" name="MultipleReturns" substitutionGroup="xbrli:item"
type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>Multiple returns indicator</xsd:documentation>
</xsd:annotation>
</xsd:element>
<xsd:element id="ApprovedInvestmentStatus" name="ApprovedInvestmentStatus" substitutionGroup="xbrli:item"
type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>Approved investment status indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="ThisPeriod" name="ThisPeriod" substitutionGroup="xbrli:item"
type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>claim for this period indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="EarlierPeriod" name="EarlierPeriod" substitutionGroup="xbrli:item"
type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>claim for an earlier period indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="ProvisionalFigures" name="ProvisionalFigures" substitutionGroup="xbrli:item"
type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>Provisional figures indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="ThisPeriodAccounts" name="ThisPeriodAccounts" substitutionGroup="xbrli:item"
type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>Accounts attached for this period indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="DifferentPeriod" name="DifferentPeriod" substitutionGroup="xbrli:item"
type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>Accounts attached for a different period
indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="NoAccountsReason" name="NoAccountsReason"
substitutionGroup="xbrli:item" type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>Reason for not attaching
accounts</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="CT600A" name="CT600A"
substitutionGroup="xbrli:item" type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>CT600A
indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="CT600B" name="CT600B"
substitutionGroup="xbrli:item" type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>CT600B
indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="CT600C" name="CT600C"
substitutionGroup="xbrli:item" type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>CT600C
indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="CT600D" name="CT600D"
substitutionGroup="xbrli:item" type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>CT600D
indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="CT600E" name="CT600E"
substitutionGroup="xbrli:item" type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>CT600E
indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="CT600F" name="CT600F"
substitutionGroup="xbrli:item" type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>CT600F
indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="CT600G" name="CT600G"
substitutionGroup="xbrli:item" type="yesNoItemType">
<xsd:annotation>
<xsd:documentation>CT600G
indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="AcceptDeclaration" name="AcceptDeclaration"
substitutionGroup="xbrli:item" type="xbrli:stringItemType">
<xsd:annotation>
<xsd:documentation>Declaration acceptance
indicator</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="Name" name="Name"
substitutionGroup="xbrli:item" type="xbrli:stringItemType">
<xsd:annotation>
<xsd:documentation>Name of
signatory</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="Status" name="Status"
substitutionGroup="xbrli:item" type="xbrli:stringItemType">
<xsd:annotation>
<xsd:documentation>Status of
signatory</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element id="Turnover" name="Turnover"
substitutionGroup="xbrli:tuple" type="xbrli:tupleType" > </xsd:element> <xsd:element id="TradingAndProfessional"
name="TradingAndProfessional" substitutionGroup="xbrli:tuple" type="xbrli:tupleType"> </xsd:element> <xsd:element
id="DeductionsAndReliefs" name="DeductionsAndReliefs" substitutionGroup="xbrli:tuple" type="xbrli:tupleType" > </xsd:element>
<xsd:element id="Total" name="Total" substitutionGroup="xbrli:item" type="xbrli:monetaryItemType">
<xsd:annotation>
<xsd:documentation>Total turnover</xsd:documentation>
</xsd:annotation> </xsd:element>
<xsd:element
CT600 data
IRS Williamsburg - April 2002
Computations
data
P&L data
E-Filing contributes to the CT Vision
as a key enabler
Increased collaboration
Company
Improved analysis
Agent
Early data tagging
Inland
Revenue
E-Filing
Joined up
e-Filing
Key initial benefits
• IR no longer re-key data
• Business rule validation of CT600 portion
improves data quality
• Filers save on administrative costs
• Filers can view and amend Returns online
IRS Williamsburg - April 2002
Companies
House
XBRL - the key to the long term vision
Shareholders
Company
Business
Process
Banks, Investors
Institutes
Accounting
Systems
Financial Statements
Filings, Tax,
Business Reports
Project, SLA,
E-Procurement
XBRL
Customers
Company
Business
Partners
Business
Process
Using standardised formats can make it much easier to
issue and interpret financial data
IRS Williamsburg - April 2002
Proposed Solution
Current
CT600
form
Accounts
A
XML
CT600
B
C
XML
CT600
XBRL
CT
Return
XBRL
Comps
Computations
IRS Williamsburg - April 2002
CT: XML Schema/XBRL Organisation
Dependency
Calculation flow
Defined by
IR XML
Forms
IR XBRL
Computation
Supporting
Tax and
Accounting Data
Mix of
IR XBRL and
UK GAAP XBRL
Nominal Ledger
General Ledger
XBRL taxonomy
• Pink triangle shows
traditional area of
responsibility in preparing
a CT submission
• At some point, the apex
of the pyramid can be
removed, so long as all
the dependencies are
downward
• Computation Taxonomy is
specific to UK IR e-filing
• UK GAAP Taxonomy
currently being developed
by ICAEW
IRS Williamsburg - April 2002
CT e-filing/XBRL - business benefits
Customer benefits
IR benefits
1 Integration with financial
reporting chain
2 Process improvement
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Fewer enquiries from IR?
Easier to complete
Reduced maintenance cost
Single filing?
Shared risk rules?
3 Enhanced regulatory
reporting?
4 Web publishing of financial
data (Company Law Review)
1 Improved customer service
2 Process improvement
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input to IR systems
Data analysis?
Drill down to underlying data?
3 Small company
deregulation?
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IRS Williamsburg - April 2002
Company Law Review
Indicative Phase Plan
2002
2003
2004
2005
Phase
Current
Paper process
Finite
Life-span
A.
Parallel Running
B.
C.
Concurrent
Development
- Service Development
- Live service
IRS Williamsburg - April 2002
The Future
• Less “e-paper”, more “e-services”
– Dispense with ‘e’ versions of paper transactions
– Break away from rigid filing cycles
– Move towards “data sharing”
• More portal-based aggregation of e-services
– CT Portal -> IR Portal
• Migrate ELS filers
• Migrate EDI and bulk PAYE filers
• XBRL for SA self-employed Accounts filing
IRS Williamsburg - April 2002
Common Data
• From PAYE project
– Separate IR Core Schema
• From Central Govt (Office of the e-Envoy)
– Govt Data Standards Catalogue (GDSC)
• Informal - no Schema yet….
– Address & Personal Details Schema
• Six month consultation period
• BS 7666 Address format - UK-oriented
• Cultural influences
IRS Williamsburg - April 2002
What we’ve learnt
• Schema/Taxonomy CM is essential
– Approaching 40 live, distinct Schema files
• ‘Horses for courses’
– XML Schema vs XBRL Taxonomy
• ‘e’ shouldn’t be a facsimile of ‘p’
– New medium, new opportunities
• Get software vendors on board early
– Provide test services in good time
IRS Williamsburg - April 2002