Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Liam Ryan CIO and Director of Logistics Revenue Commissioners Recent Advances in Revenue

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Evolution With subtitles! - “Doomed I tell ye” - A new cunning plan - Changing the rules - Any colour as long as its black - We’re in this together - Now for something completely different - But I liked the old version - Do not pass Go - The red channel - iTuning in - Tablets and tax - Learning to tweet - Mission control - Its good to share - Ask the audience - While we’re here - The last word - Challenges and opportunities - Statement of Strategy - Legislation programme and examples - Mandatory electronic filing - Joined-up working - Radical change - Reworking ROS - Real-time risk analysis - Customs & Excise and the EU - Apps for everything? - RCT new directions - Social media ambitions - Project management - Services and infrastructure - Other recent developments - Doing the right things? - Lessons we’ve learned

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January The reality is that Government budgets will remain under pressure for years to come. Investments, for example in e-Government, must be pragmatic and prioritised. Technology will be a key factor is doing more with less, but the ‘spend to save’ argument must be used wisely. Customer self service, online, can help us cope and address our reduced resources. Challenges and opportunities (“Doomed I tell ye”) For the more optimistic, “Challenges and Opportunities” as per Revenue’s new Statement of Strategy

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Pressure on collection - Shadow economy - Smuggling - Compliance costs - Tax reform - International developments - Growth in online transactions - Loss of skills and experience - Flexibility and productivity - Value for money - Accountability for performance Statement of Strategy (A new cunning plan) New Revenue SoS focuses on: …Targeting the highest risk areas, improving cross- agency cooperation, information matching and intelligence usage… ….Increase the use of Revenue’s electronic channels, through better marketing of voluntary take-up and expanding mandatory categories….

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Legislation programme (Changing the rules) This key enabling piece takes planning, fine crafting and time given the legislative life cycle. The changed rules then allow for changed business processes, which can in turn be incorporated into new ICT solutions. Revenue has recently engaged in big projects like: - Electronic Stamp Duty - Capital Taxes - Vehicle Registration all of which use specific enabling legislation for the move to electronic or online interaction. Revenue also seeks to maintain the tax laws as befits an electronic era. For example we’ve recently consolidated the VAT tax laws. By updating and restructuring the VAT code in line with the EU VAT Directive, it has made VAT law more accessible and readable for tax practitioners, businesses, Revenue staff and students of taxation.

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Legislation programme examples ( “ I love it when a plan comes together”) Key aspects of eStamping and CAT Planned project timeline with respect to legislative cycle Early and wide consultation with stakeholders Obvious superiority of online system gives a built-in nudge Complex interactions on-line only (mandatory) Alternative and infrequent channels simplified as result Existing service/yield maintained during transition Electronic Stamping - Finance Act Regulation made and system launched in Dec Online not yet mandatory - Voluntary electronic takeup 90% - Online easier/faster than paper Electronic Stamping - Finance Act Regulation made and system launched in Dec Online not yet mandatory - Voluntary electronic takeup 90% - Online easier/faster than paper Capital Acquisitions Tax - Finance Act System launched in June Complex reliefs mandatory online - Allowed simple paper version for occasional use - Online takeup already 45% Capital Acquisitions Tax - Finance Act System launched in June Complex reliefs mandatory online - Allowed simple paper version for occasional use - Online takeup already 45%

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January A significant level of voluntary eFiling has been achieved by Revenue e.g. Income Tax 80%. No substantive legal issues so far as regards the use of a Digital Signature and e- legislation in general Provision made to exclude those who do not have the capacity to file online. This is not defined in detail. Option to appeal any Revenue decision. Opportunity taken in reforming other tax administration to introduce mandatory eFiling especially for complex transactions 1999Legislation allowing for eFiling of tax returns and other Revenue forms introduced in Finance Act Legislation allowing for mandatory eFiling and mandatory electronic payment and repayment of tax introduced in FA 2003 but subject to a commencement order 2008Commencement order made in 2008 following application by Revenue. There had been a certain reluctance in the "system" towards activating the measure. Revenue had to undertake to consult widely and commencement order only made after results of this consultation made known Mandatory eFiling already introduced for Governmental organisations (phase 1) and large companies and their subsidiaries (phase 2) Mandatory electronic filing (Any colour as long as its black)

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Mandatory electronic filing (Completing the programme) Significant consultation with and largely positive feedback from our customers and stakeholders is enabling our phased transition to mandatory electronic filing for most taxpayers. Further ‘mop up’ phases will mean that virtually all businesses and significant taxpayers will be required to file tax returns electronically by Commence staged introduction of phase 3 of mandatory eFiling (extended to all companies, partnerships, trusts etc. approx. 200,000 entities) and do groundwork for next phase 2012 Commence staged introduction of phase 4 of mandatory eFiling (all remaining VAT, foreign life policies, offshore funds and certain reliefs and allowances)

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Joined-up working (We’re in this together) Revenue Private Sector/ Representatives Other Government agencies Taxpayers Capital Taxes Law Society, Tax Practitioners Courts Service (Probate Office) Stamps Duty Law Society, Tax Practitioners Property Registration Authority VRT Applus+, SIMI, Motor Dealers, Motor Distributors, Various Financial institutions Department of Transport, Department of Environment, RSA (NCTS), CSO, Gardai, EU

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Radical change (Now for something completely different) Revenue decided to use the National Car Testing Service to carry out pre registration checks formerly done by Revenue. Made necessary legal changes. Engaged with Road Safety Authority prior to their tendering for a new NCTS provider. Have linked the Revenue VRT system to the winning tenderer’s system (Applus+).

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Reworking ROS (But I liked the old version) New Revenue channels such as PAYE anytime are designed with the Facebook generation in mind. Older offerings, such as the original ROS for business taxes are showing their age, from a usability and maintainability aspect. Of course established customers are used to the old interface and we need to avoid disruptive change will see a significant revamp of the ROS channel, in tandem with scheduled functional releases

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Real-time risk analysis (Do not pass Go) Prevent Deter Correct Punish Detect Stop error and fraud getting into the system in the first place Increase the likelihood of finding bad transactions Put incorrect cases right quickly and get back what we’re owed Strengthen sanctions for those caught Publicise punishments and the likelihood of being caught

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Customs & Excise and the EU (The red channel) Excise movement control system (EMCS) - trade facilitation plus better control of excise movements Launch of Import and Export Control systems - Customs moving into the safety and security area EU Modernised Customs Code - streamlining Community customs activities through use of technology Given our existing architecture and connections with other departments (e.g. Department of Agriculture) and the EU, our ROS system may be an option for the Irish ‘single window’

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Apps for everything? (iTuning in) We have launched the first of a series of applications (apps) for the iPhone and other mobile devices. iPAD and other tablets under consideration for more complex apps. Complemented by Rich Internet Applications for the desktop which combine tax calendar and pay and file functions for VAT and Payroll Taxes.

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January To underpin the implementation of these major changes, Revenue will engage with stakeholders early in 2011 and will be working with the CIF, IBEC, the SFA and other representative groups. RCT new directions (Tablets and tax) The nature of the industry and the envisaged electronic exchanges may lend themselves to the use of mobile tablet devices As per the recent Budget announcement and subject to the Finance Bill process, the current Relevant Contracts Tax (Construction, Forestry, Meat) system will be upgraded to a largely electronic only system. Principal contractors will be obliged to engage with Revenue online at regular intervals. The key change is a real-time instruction either to pay a subcontractor gross or to stop tax at a specific rate. Revenue will also interact electronically with subcontractors. The new system will have three RCT rates, with the rate that is applied to a subcontractor dependent on the subcontractor’s compliance record.

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Social media ambitions (Learning to tweet) YouTube – for launches and ‘how to’ material, like Revenue Canada Twitter – as a rolling information channel (a la Irish Rail) LinkedIn – for closed user group discussions e.g. with tax practitioners Facebook - ??? Other - ???

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Project management (Mission control) Balancing Operational Support, Programme Delivery and Strategic Development Programme Planning Risk Management Programme Budget Management Business/ICT Collaboration Measurement of Results Post Implemention Review Programme Management

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Services and infrastructure (Its good to share) eGovernment Strategy - Single view of customer service - Focus on intermediaries and professional bodies - Partial online+transaction slip to complete in person - On-line booking systems to manage queuing - Integrated directories and maps - and much more A secure infrastructure piece is still vital, whether internal, shared service, or external Data Centre Services

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Benefit MAC level down: - Key KPIs, - Drill down from departmental view to Division, Team - Shared data across agencies Build into new applications or can often be retrofitted cheaply Process redesign using business process modelling Data mining and predictive analytics Monitoring workflows and KPIs via dashboards Adding maps to make information more accessible Using Open Source to make facilities affordable e.g. publishing management Collaboration and ‘ideas mining’ Other recent developments (While we’re here)

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January “Ask the audience” is a common approach! Customer surveys (citizen and business) by Dept of Taoiseach Revenue also carries out its own customer surveys – see across Doing the right things? (Ask the audience)

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January See your services through the eyes of the customer and seek feedback regularly Lessons we’ve learned (The last word) eGovernment is a very powerful approach – it can genuinely transform how you do business and drive down costs Review your legislation and business processes first! Business managers must own projects, share responsibility for delivery with ICT and realise the benefits Downstream change management needs constant emphasis to avoid becoming fragmented over time Good governance and project management is vital Need to get ICT capability / people strategies right Advance quicker by learning from others; consider shared services and platforms if available Take the long view in planning your programme, with incremental delivery

Transforming Public Services Seminar on eGovernment Recent Advances in Revenue January Thank you for your attention! - “Doomed I tell ye” - A new cunning plan - Changing the rules - Any colour as long as its black - We’re in this together - Now for something completely different - But I liked the old version - Do not pass Go - The red channel - iTuning in - Tablets and tax - Learning to tweet - Mission control - Its good to share - Ask the audience - While we’re here - The last word - Challenges and opportunities - Statement of Strategy - Legislation programme and examples - Mandatory electronic filing - Joined-up working - Radical change - Reworking ROS - Real-time risk analysis - Customs & Excise and the EU - Apps for everything? - RCT new directions - Social media ambitions - Project management - Services and infrastructure - Other recent developments - Doing the right things? - Lessons we’ve learned