2 PITAA Framework of Operation ObjectiveTo promote closer cooperation and coordination of information sharing in tax administration and policy formulation in pacific countries.Help promote international standards and best tax administration practicesEncourage taxation institutions to design and adopt strategies to modernize and enhance their effectiveness and efficiencyPurposeThe purpose of this paper is to present to PITAA a Tool Kit of Materials developed for each of the components of the Model Tax Office using the Baseline Assessment Framework earlier formulated by PFTAC Revenue Advisor, Ms. Margaret Cotton.
3 BackgroundIn the 7th Annual PITAA Heads Meeting, the PITAA Model Tax Office Framework and its core components was tabled and expounded by PFTAC.PITAA endorsed the continuation of this key initiative. To that purpose I was attached with PFTAC for the past two and a half months.ObjectivesTo work with the PFTAC Revenue Advisor to identify and develop a tool kit of materials for each of the components of the model tax office.Arrange for the PITAA website to be updated with links to the tool kit of materials or, where such materials are confidential, links to the source country that may make the material available on request
4 MODEL TAX OFFICE TOOL KIT OF MATERIALS Core ComponentsCountries (that have the key elements present in their tax administrations)Contact Person and /or websitesLegislation FrameworkKey ElementsNP tax/business ITGross revenue taxPresumptive taxPersonal ITVATTax/ rev. admin taxDTAsTIEAExemptions / tax holidays/ incentivesCommissioner discretion to waive / reduce tax payableOther legislationNZ;Australia;Tonga;Cook Is;Fiji(will becompleted soon)contact persons: Kesaia Koro; Laisiana Tugaga;
5 Administration Framework Key ElementsIncome tax- self assmt.VAT- self assmt.Taxpayer-demand for info .Demand notice to provide info.Rights to enter a tp premises to take books & doc,lists of offences & penalties for taxpayers who do not meet their obligationlegislation - outline tp rightsenforcement of these penaltieslegislation allow commissioner to delegation of responsibilities to staffsSharing of info. with 3rd parties.Customs, police, statistics, social security, treasury, otherAustralia;Cook Is.Tonga;Tuvalu;contact person:Forms -Public rulings -Guide to Tongan Income Tax –PAYE worksheet -
6 Governance and Accountabilities. Key ElementsPerformance standard cover – volume, timeliness, qualityReport to govt. on achievement of performance standard.Prepare & publish annual reportHave a code of conductStaff signs the code of conductStrictly enforce the code of conductTonga;PNG;Solomon Is.Not on website yetCorporate StrategiesHave a corporate strategyBusiness planVision statementMission statementCompliance improvement strategyHR strategyIT strategyFiji;Contact persons; Kesaia Koro;Laisiana Tugaga;Contact persons; Lepaola Vaea ; ; Michael O’Shannassy ; ; Teisa Pohiva ;
7 Support ProcessesKey ElementsTax policyTechnical & legal adviseCommunicationsInternal auditFinance departmentDesign & planningInformation technologyHuman resources/ personnelBusiness/ corporate servicesThese services are not provided in- house but is accessible in wider govt.Fiji;PNG;TongaCore ProcessesKey Elements.Taxpayer registrationData processing (entering data from returns)Returns collectionCashierPayment/debt collectionTaxpayer audit/ investigationObjections processesAssessmentTaxpayer services - phone counter visitRulings, brochure, publicationOperating ModelTeams based on tax typeFunctional teams – audit, debts, services etc.Taxpayer segment (S,M & L tp)Mix of function and segmentTonga;KiribatiContact persons; Kesaia Koro;Laisiana Tugaga;Public consultation -
8 AutomationKey ElementsTaxpayer registrationPayment collectionReturn collectionCorrespondenceCase collectionRisk identificationObjections & appealsCase managementAssessmentBranch office automatedData back upDisaster recovery planUp to date websiteElectronic tax paymentsIn house IT supportIT support from govt.Fiji;PNGContact persons; Kesaia KoroLaisiana TugagaHuman ResourcesHR policies on:RecruitmentRetentionSuccession planningPay rates/ remunerationPerformance reviewJob descriptionsTechnical competencies & best suited criteriaPerformance reviewsDisciplinary processesRegular training programTraining needs analysis processAutonomy to hire staffPNG;Cook Is.;SolomonContact persons; Kesaia Koro;Laisiana TugagaContact persons Somashini Blake; ; Kevin Hosking;
9 RecommendationFor the member countries yet to provide relevant links as part of PITAA Model Tax Office Tool Kit of Materials to do so.All member countries are urged to visit the PITAA website whereby access to the Tool Kit of Materials is available.