Presentation on theme: "TAX EXECUTIVES INSTITUTE JOINT CHAPTER MEETING November 16, 2006."— Presentation transcript:
TAX EXECUTIVES INSTITUTE JOINT CHAPTER MEETING November 16, 2006
Michigan Integrated Tax Administration System MIITAS Agenda: Tell you about the MIITAS Project Your thoughts on what we should include
Michigan Integrated Tax Administration System MIITAS Introduction: Julie Croll, Chief Deputy Treasurer Julie joined the Department of Treasury in November of 1999 as Deputy Treasurer for Financial and Administrative Services and became Chief Deputy Treasurer in April of 2001. The Chief Deputy Treasurer oversees four tax bureaus - Tax Processing, Customer Contact, Compliance, and Policy, as well as the Bureau of Administrative Services (HR, Purchasing, etc.) and the Bureau of Program Management. Ms. Croll has worked in many different departments within state government; most recently in the Department of Consumer and Industry Services where she was Director of the Corporation, Securities, and Land Development Bureau. She is a graduate of Michigan State University where she was awarded a baccalaureate degree in Business Administration.
Michigan Integrated Tax Administration System MIITAS Introduction: Steve Black, MIITAS Project Director Principal, TechAlign (Bloomfield Hills, MI) 15 Years’ Large Project Management Experience with Deloitte Consulting, PricewaterhouseCoopers, and General Motors Past Clients Include: DaimlerChrysler (Germany); Toyota (Australia); Citigroup (New York); Transamerica (Brazil); SBC (Texas & Illinois); British Telecom (UK); Owens-Corning (Ohio); Sony (Hong Kong/China) Certified Master Practitioner, Change Integration PricewaterhouseCoopers (1998)
Michigan Integrated Tax Administration System MIITAS Other Taxes & Functions Sales, Use & Withholding Business Registration November 2007 March 2008 Michigan’s Department of Treasury has begun replacement of its antiquated and inadequate computer systems, starting with the 30-year-old Business Registration and SUW processing components. Fractured and feeble mainframe programs will be reborn in SAP’s Tax and Revenue Management solution, leveraging the same world-class software that powers most large corporations. Modernization of SUW and Registration is the first phase in the transition to an Integrated Tax System, and will take two and a half years to implement. Background:
Michigan Integrated Tax Administration System MIITAS About SAP: SAP has more than 33,000 total customers, including more than 1,500 in the public sector. The core functionality in SAP software for tax and revenue management is used by more than 550 governments and utilities. SAP has over 70 Michigan customers, including Dow, Delphi, GM, Whirlpool, DTE, Kellogg, Steelcase, Auto Owners Insurance and CMU Florida installed the SAP Tax and Revenue Management in 2000. “SUNTAX” has been upgraded twice, and now generates $35 billion in annual tax revenue. In Computerworld’s case study on SUNTAX, it calculated a return on investment from the SAP solution of $8 for every $1 invested.
Michigan Integrated Tax Administration System MIITAS Expected Benefits: Easier for businesses to register, file and pay sales and use taxes, and withhold income tax through: o Electronic filing of the SUW monthly, quarterly and annual returns, o Electronic ‘Notices of Change’, o Ability to order returns via the Internet with identification information pre-populated. More timely refunds and deficiency notices issued to taxpayers, through improved processing of annual returns. Improved customer service, through: o Fewer phone calls, correspondence and manual corrections required o Real-time posting of transactions. o Fewer system-generated errors. Ensure continued confidentiality/privacy of taxpayer data in an increasingly “customer self service” environment.
Michigan Integrated Tax Administration System MIITAS Expected Benefits: Fully participate in the Streamlined Sales Tax effort, which allows tax collection from remote sellers, thus leveling the playing field for Michigan companies. Will make it easier to insure that taxes are applied fairly and consistently across all taxpayers. Timely, accurate, revenue accounting between Treasury’s systems and State’s accounting systems. Necessary building block for a “customer self service” environment, where businesses will have online, managed access to their accounts, interactive returns, and real-time status tracking. A flexible processing system will allow Treasury to adapt to changing customer and legislative needs.
Michigan Integrated Tax Administration System MIITAS Return of Record Return in Taxpayer’s File Return as Filed Adjustments, Amendments, etc. Account Maintenance: CURRENT: Manually by Account Maintenance unit FUTURE: Automatically, online
Iowa’s E-File for SUW 88% 98% 95% 91% Withholding Returns Sales & Use Returns SUW Payments (Percent of total funds) SUW Payments (Percent of transactions) 80% 50% As Reported at MSATA 12345 Quarters Since Launch Michigan Integrated Tax Administration System MIITAS
Integration across tax types will allow the Treasury to provide a concise, comprehensive view of their status to taxpayers. Integration will provide more complete information, both financial and analytical, to decision makers in the Executive and Legislative branches. Skills acquired in this first implementation of SAP, the backbone of most major companies’ computer operations, can be leveraged to make future implementations faster and less expensive. SAP will constitute a robust, modern technical platform to which Treasury can add other taxes and functionality far more quickly and cost-effectively than was possible with the old custom-built code. Michigan Integrated Tax Administration System MIITAS Benefits of Robust Platform:
A critical component of the project is the inclusion of business taxpayers and other external customers in the development and deployment of the system. This pro-active engagement is part of the Department’s goal to improve communication and build relationships with its stakeholders. “We must ensure that every new system and process meets the needs of our taxpayers and other citizens.” – Robert J. Kleine, State Treasurer “The most important point of view is the customer – we need to understand how to make accurate, timely payment of taxes as easy for them as possible.” – Julie Croll, Chief Deputy Treasurer A Strong Base for Future Cooperation: Michigan Integrated Tax Administration System MIITAS