NEW TECHNOLOGIES FOR CITIZENS AND TAX SYSTEM ELECTRONIC TAX RETURN FILING SYSTEM July, 2000 GRUPPO TELECOM ITALIA - FINSIEL

2 TAXPAYER INDIVIDUALS COMPANIES TAX RETURNS VAT, Social security Payment proxy NEW WAYS OF PAYMENT (credit cards, checks, self-service desks, home banking) BANKS POST OFFICE TAX PREPARERS BANKS AND POST OFFICES TAX SOCIAL SECURITY Tax data base Social security data base Regional data base THE PARTIES INVOLVED IN THE ELECTRONIC FILING SYSTEM BIG COMPANIES Work insurance data base TAX RETURNS PAYMENTS TAX ASSISTANCE BUREAUS & TRADE ASSOCIATIONS

3 MAIN RESULTS ACHIEVED THROUGH THE ELECTRONIC FILING SYSTEM (to date) 31,701,862 tax returns transmitted ( 2,016,786 files)31,701,862 tax returns transmitted ( 2,016,786 files) unified paymentsunified payments since May 1998: 33,668 billion Lire (credits/debits) (17,000 million USD) 33,668 billion Lire (credits/debits) (17,000 million USD) 22,126 in ,894 in ,894 in ,124,540 billion Lire (payments received) (550,000 million USD) 599,068 in ,124,540 billion Lire (payments received) (550,000 million USD) 599,068 in ,807 in ,807 in 2000 the Administration’s clearing system distibutes in 7 days the amounts due to the different tax levying bodies and gives them all relevant information about taxes collected 74,585 users authorized to access the electronic tax filing system74,585 users authorized to access the electronic tax filing system

4 OPERATING INFRASTRUCTURE SECURITYSECURITY –registration and certification authority –front-end access control systems CALL CENTERCALL CENTER WEB SITEWEB SITE PAYMENT SYSTEMPAYMENT SYSTEM

5 COMMUNICATIONS TO TAXPAYERS This is an important step towards building new relationship between taxpayers and the tax administration based on openess and quality services This is an important step towards building new relationship between taxpayers and the tax administration based on openess and quality services Communications are sent to the taxpayers before the next tax return deadline: Communications are sent to the taxpayers before the next tax return deadline: –to inform the Taxpayer that his/her calculations are correct in the case of regular payment –to inform the Taxpayer about any errors made in the case of irregular payment 16 million communications are sent annually, 80% of which regard regular tax returns 16 million communications are sent annually, 80% of which regard regular tax returns

6 MAIN DEVELOPMENTS FOR THE YEAR 2000  Tax returns sent via internet by Taxpayers  Rent contracts and property purchase deeds sent on line  On line services for citizens, tax preparers and other intermediaries

7 ON LINE SERVICES FOR LAND REGISTRY Goals of the new system to create a single data base containing information about the following:to create a single data base containing information about the following: –property ownership, property sharing and deeds –estimated value of property –identification and description –vectorial and raster cartography to match the “raster” maps of the Administration with the numerical data produced by land surveyors by means of PREGEOto match the “raster” maps of the Administration with the numerical data produced by land surveyors by means of PREGEO to provide services to land surveyors and other local bodiesto provide services to land surveyors and other local bodies to give a full service to the tax offices (monitoring + updating)to give a full service to the tax offices (monitoring + updating)

8 ECONOMIC PLANNING BACK UP SERVICES DATA BASE OF THE ECONOMY INTEGRATED CHECK STUDIES - RESEARCH TAXSYSTEM WELFARESYSTEM OTHERSYSTEMS OFFICES REVENUE REVENUE SOCIAL SECURITY SOCIAL SECURITY WORK INSURANCE WORK INSURANCE FINANCE POLICE FINANCE POLICE CUSTOMS CUSTOMS REGIONAL BODIES REGIONAL BODIES NATIONAL ECONOMIC SYSTEM DATA BASE OF THE ECONOMY RESEARCH CENTRES RESEARCH CENTRES TRADE ASSOCIATIONS TRADE ASSOCIATIONS INSITUTIONAL BODIES INSITUTIONAL BODIES

9 ELECTRONIC TAX RETURN a means to building up a good working relationship between Taxpayers and the Administrationa means to building up a good working relationship between Taxpayers and the Administration a solution that will:a solution that will: – speed up data exchange among the Administration, taxpayers and companies – provide high quality services to citizens – create an information hub which is designed to serve users and not procedures

10 COMPANIES BAMKS POST OFFICES COUNTIES SOCIAL SECURITY WORK INSURANCE NEW MINISTRY STATE PROPERTY CUSTOMSTERRITORY REVENUE INTERMEDIARIES TAXPAYERS Finance Police AGENCIES Ministry of Finance Tax system CITIZENS TAX ASSISTANCE BUREAUS TRADE ASSOCIATIONS TAX COLLECTORS NEW ORGANISATION OF THE MINISTRY OF FINANCE AND THE TAX SYSTEM NEW ORGANISATION OF THE MINISTRY OF FINANCE AND THE TAX SYSTEM TAX PREPARERS REGIONS MUNICIPALITIES

11 THE TAX ADMINISTRATION ON-LINE The network serves as a platform which creates –an information channel for taxpayers better and faster assistance and services –an internal communication system for the new Administration increased cooperation among workers, knowledge and experience sharing –the internal functioning of the agencies a new way of working in a more flexible work environment

12 … the tax administration on-line Electronic tax filing system is designed to be progressively upgraded It is a reference point for other parties involved in the tax system that want to link up with their clients through the net

13 THE TAX ADMINISTRATION ON-LINE TAX RETURNS AND PAYMENTS SENT FROM HOME VIA INTERNET TAX RETURNS CUSTOMS DECLARATIONS CADASTRAL CERTIFICATES TAX AND SOCIAL SECURITY ASSISTANCE ALL OPERATIONS BETWEEN TAXPAYERS AND TAX AND SOCIAL SECURITY ADMINISTRATIONS (Central Tax Administration, regions, Councils, Social Security and Work Insurance Institutes…) TAX RETURNS AND PAYMENTS UNIFIED PAYMENTS 65,000 OPERATORS 50,000,000 OPERATIONS BANK SYSTEM 20,000,000 TAXPAYERS THE PATH 100,000,000 OPERATIONS FOR ON-LINE SERVICES

14 …working infrastructure … SECURITY Taxpayer registration and identificationTaxpayer registration and identification Integrity of data exchangedIntegrity of data exchanged –each party has a couple of asimmetric keys –the file that is forwarded is “signed” by the user’s private key with the sender’s code (electronic signature) Privacy (all data are crypted before transmission by the Administration’s public key and can only be decripted by the Administration’s private key)Privacy (all data are crypted before transmission by the Administration’s public key and can only be decripted by the Administration’s private key)

15 The Adminsitration has a Help desk centre to provide assistance to authorised taxpayers about any problems relating to the use of the electronic filing system More than 300,000 calls received in the first three months after start-up New call centres have just been set up to provide assistance for tax returns via internet …working infrastructure … CALL CENTER

16 General informationGeneral information –tax laws –information about how to use the electronic filing system Tax formsTax forms Technical requirements for electronic transmissionsTechnical requirements for electronic transmissions Configuration and installation proceduresConfiguration and installation procedures Precheck Software KitPrecheck Software Kit FAQsFAQs...working infrastructure … WEB SITE

17 Present day: Payments can be carried out at Banks, Post Offices and through authorised tax collectors Future developments: D irect authorisation through bank account D irect authorisation through bank account (the taxpayer authorises his/her bank to withdraw any tax due from his/her bank account) Credit cards Credit cards payments for the unified tax return payments for the unified tax return payments due after automatic tax return control payments due after automatic tax return control Internet Internet the taxpayer authorises the Administration through the use of a code to withdraw from his/her bank account the tax due the taxpayer authorises the Administration through the use of a code to withdraw from his/her bank account the tax due … working infrastructure WAYS OF PAYMENT

18 … main developments in the year TAX RETURNS VIA INTERNET Goal: to enable citizens to send their tax return and payment authorisation via internet to the Ministry of Finance without the help of any intermediaries: unified tax form,unified tax form, request form authorising the direct withdrawal of tax payments due through the taxpayer’s Bank accountrequest form authorising the direct withdrawal of tax payments due through the taxpayer’s Bank account The benefits for citizens and the Administration include: reduction of errors in tax returns and paymentsreduction of errors in tax returns and payments data are sent quicklydata are sent quickly

19 … main developments in the year ON LINE SERVICES FOR CITIZENS, TAX PREPARERS AND OTHER INTERMEDIARIES VAT number and personal data registration of new business activity registration of new business activity changes or closure of business activity changes or closure of business activity changes in personal data changes in personal data Inquiries through the central data base information about your personal tax return and payments tax litigation data tax litigation data certificate for newly requested VAT number certificate for newly requested VAT number