Challenges of Developing Information and

Communication Systems

Risto Hinno Chief Specialist Service Department

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E-services of the Estonian Tax and Customs Board – e-Tax

Board/e-Customs E-Tax Board/e-Customs – tax and customs services on the Internet Offers 24 hours a day about 30 services for natural persons over 50 services for legal persons

Enables secure data exchange, personal information High-speed, simple, convenient, paper-free Is a quite unique technical solution on the European tax map as to taxpayer service and communication

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Example of Functionality: Natural Person Income Tax Return

1. Collect information

2. Pre-fill the return

4. Refund or inform

3. Let the taxpayer confirm or correct

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Facilities for legal persons Additional possibility is to upload the declarations in

specific file format All messages on errors when filling in and filing the declaration appear on-line Detailed information on mistakes on declarations can be constantly followed All calculations are made electronically and results are instantly visible after filing the declaration Claims and payments are constantly followed on-line Electronical submission of the claims for refund Pay taxes Manage aothorized persons

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Percentage of e-declarations 94 – 98%

E-Tax/e-Customs is the most frequently used service channel of the Estonian Tax and

Customs Board – 95% of the clients have used it and the service was rated 4.5 on a 5-point scale (Data of the client satisfaction survey 2010)

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VAT return Corporate Income Tax and Employer Tax Returns

Natural Person Income Tax Returns Customs Declaration (COMPLEX)

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What kind of ICT systems should we develop?

Systems that help to automate (massive) routine work (sending notifications, entering data etc.) and digitalize paperwork

Systems that reduce administrative burden for clients (reduce face to face contacts, provide more usable (e-)services)

Systems that help us to keep up with new technologies and with developing needs of our clients (services for iPhone, iPad etc.)

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(Supportive) Systems that help us to develop new ICT systems CRM (customer relationship

management) system - system where front-line staff marks information about face to face contacts

RITA – system where all operative level officials mark their daily worktime (also social time, vacations etc.)

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TOP 5: 1. Natural Rerson Income Tax

Return: printout 2. Natural Person Income Tax

Return 3. Natural Person Income Tax

Return: submission of additional documents

4. Contact information 5. Certificate of tax arrears

Reasons why people visit our service bureaus (data

from CRM system 07.2011-03.2012)

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Where do we spend our human resource?

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Pre- and post-notification system IRIS (1)

Is being developed at the moment Notifies about coming tax return/payment date or

about problems (mistake in tax return, tax debt) Goal is to reduce back office work (start managing

problems before they appear) System is semi-automatic (officials have to step in

only in certain stages for example to create administrative act)

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Pre- and post-notification system IRIS (2)

If taxpayer does not respond to notification post-measures (blocking bank account/fines) are used

All documents in IRIS are created digitally and sent to taxpayer via e-Tax Board (if client does not have e-Tax Board account we print it out and send by post)

Digitalization saves approximately 60 000€ in a year (expense on post and work time)

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What to keep in mind while developing?

We develop systems in areas where we spend significant amount of human resource (supervision of tax returns, back office works)

Developing ICT systems needs clear concept about the future work process

ICT only supports our processes and work (first design process and then think if/how ICT can help you). Sometimes you only need to change work distribution/concept

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Future plans Clients (e-)mailbox in e-Tax Board (100% electronic

communiction), first steps are made in IRIS Services for mobile phone (sumission of Personal

Income Tax Return, e-Tax Board platform for smartphones, iPads) We already have customized some public queries (tax

debt, VAT nr) for mobiles: https://apps.emta.ee/e-service/doc/i0301.xsql

http://apps.emta.ee/e-service/doc/a0004.xsql

Thank you!

risto.hinno@emta.ee