Download benchmark_in_crown_agents - VAT Administrators Forum for Africa

BENCHMARKING PRESENTATION
SELF ASSESSMENT BY BENCHMARKING
 Introduction - how many times have we been asked the question how
well
are
you
doing?
This may apply equally to:
 Tax Administration.
 An individual office
 A support system.
 A process
SELF ASSESSMENT BY BENCHMARKING
Can we give an accurate response with evidence? . How do we answer?
 Compare with others
 Gut reaction
 Response tends to be very subjective
 We do not have the experience or systems to measure performance
 If we are honest, probably most of us would struggle
SELF ASSESSMENT BY BENCHMARKING
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In most VAT regimes performance measurement is crude
 Internally - total revenue collections (targets not sophisticated)
 Externally (/MF) - VA T as a % of GDP
 These are OK as a high level guide BUT - can we be better
prepared? How can we give a more complete picture?
SELF ASSESSMENT BY BENCHMARKING
Some
modern
public
and
private
organisations
have
introduced
"benchmarking" as a system of assessing performance
 It encourages collaboration between similar government departments
and the private sector to determine what constitutes good or better
practice.
 What is benchmarking?
 It is a structured form of analysis aimed at providing short term and
continuous improvement
SELF ASSESSMENT BY BENCHMARKING
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 Benchmarking can apply to:
o Qrqanisations as a whole (strategic).
o Part or function of an organization
o Individual process or business system
SELF ASSESSMENT METHODOLOGY
 Identify criteria / components of a process or an organisation
 Agree measurement of performance (poor to good) for the criteria /
components
 Compare and score criteria /components .
 Share information and results
LIMITED TIME AVAILABLE
 Benchmarking can best be illustrated by providing an example of
process "benchmarking" for a critical VAT operational activity:
Audit / Control verification
 This is an ideal process as it is key, expensive in terms of human and/or
time and for budget
WHAT ARE THE CRITERIA?
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 VAT LEGISLATION - adequate / balanced
 AUDIT PROGRAMME - annual with targets / regular reviews
 SELECTION OF TAXPAYERS - risk based
 RESOURCES - staff involved properly skilled / trained
 EQUIPMENT - staff have adequately "equipped" vehicles
AUDIT/ CONTROL VERIFICATION CRITERIA
 AUDIT MANUAL I INSTRUCTIONS
 STAFF NUMBERS - audit resources deployed
against numbers of taxpayers
 QUALITY ASSURANCE - programme in place
 MANAGEMENT INFORMATION - information statistics / results
available
 TAXPAYER RELATIONS - information (notices / leaflets), surveys,
transparent appeal system
LEGISLATION - ASSESSMENT / SCORING
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1. The legal system (courts/tribunal) itself is weak and prevents the law
being imposed.
2. Outdated legislation - does not provide adequate powers for audit
visits/visiting staff and contains some provisions which seriously
weaken efficient/effective visits.
3. Requires some amend menu revision to improve audit work
4. Modern legislation which does not seriously impede audit
work
5. Modern legislation which does not impede audit work in any way and
provides reasonable protective clauses for the taxpayer
CRITERION SCORE
 Form designed for each criterion which identifies strengths, areas for
improvement, evidence and the score allocated
 Self assessment benchmarking would be scored as follows:
Ten criteria - range of benchmarks scores
1 to 5 (the higher the better) - max score for the process is 50
 Low scores will identify weak areas – Administration with an individual
high score can help another with a low score
WAY FORWARD
 Good news - the VAT Forum has in a way been an annual
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benchmarking event
 Procedures, issues and problems have been debated and solutions /
best practice established
 What is needed is a more structured and formal approach
WAY FORWARD
 VAT Administrations could undertake benchmarking exercises
"corporately" or for selected/individual systems/procedures
 Members of the VAT Forum could form a benchmarking team
(support from secretariat) and "share" results
 Crown Agents will include "benchmarking" in content of VAT
Managers training courses (started in 2003)
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