Download TADAT External Assessment

COMPLIANCE
The Jamaica Experience in Using TADAT
POA 2: Good Practice in Risk Management
Evaluation of
effectiveness
of major
mitigation
activities
Structured
multi-year
approach to
managing
compliance
risks
Identification,
assessment,
quantification
and
prioritization of
risks
International
good practices
Documented
compliance
improvement
program
comprising risk
mitigation
activities
Intelligence
gathering and
research builds
knowledge of
compliance
risks
Compliance risk
assessments
structured
around taxpayer
segments, tax
obligations and
core taxes
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POA 2: Risk Management - 2015
C
B
D
C
Current analytical work entails, primarily, the review of tax
returns and third party information from a few sources.
A TAJ National Compliance Plan (NCP) for FY 2015/16 was
published in June 2015; a new reporting template is yet to be
rolled (will be in November, 2015).
Changes in taxpayer compliance behaviour, emanating from the
implementation of risk mitigation activities, are not being
monitored. The evaluation is limited to administrative
performance in the main obligation areas.
Risk plans for 2015/16 have been prepared but it is unclear
whether they are being implemented. Also a recently
reconstituted risk management committee has not yet met to
provide guidance.
Source: TADAT Report – November 2015
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Redesigned
PLANS
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Strategic Plan
FY 2016/17 – 2018/19
TAJ Objectives
• Continuously
improve
voluntary
compliance
(through
enhanced
customer
service)
Strategies
• Continuous
improvement in
the health of key
components of
the system of tax
administration
(through
strengthening
compliance risk
management, …
Key Output
• TADAT
assessment
performance
outcome areas
achieved
(Compliance
rates improved)
Source: Excerpt from TAJ Strategic Plan 2016/17 – 2018/19
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National Compliance Plan
FY 2016/17
Compliance
Areas
•
•
•
•
Registration
Filing
Correct Reporting
Payment
Strategies
• Service
• Education
• Enforcement
Principal Taxes
• GCT
• Corporate Income
Tax
• Individual Income
Tax
• PAYE
• Asset Tax
• Minimum Business
Tax
• Withholding Taxes
Source: Excerpt from TAJ NCP 2016
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Taxpayer Segmentation
Small:
Sales btw J$10M
& $150M
Medium:
(lower & upper)
Sales btw
J$150M & $1B
Micro:
Sales < J$10M
Large:
Sales > J$1B
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Know Your Taxpayer
8
Revenue Administration Information System
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ADMINISTRATIVE GAINS
 End-to-end case
management
 Arrears management
 Management reports
 Automatically generate
letters/notices
 Discovery
 Analytics
Improved
COLLECTIONS &
EFFICIENCY
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Benefits to Taxpayers
Wider range of online
services
Consolidation of
Multi-agency Services
Cost/Time savings
using online
Tax savings from
compliant behaviour
Benefits to TAJ
Wider range of tax
administration services
Consolidation of Multiagency Compliance
Cost/Time savings
processing online
Tax earnings from
compliant behaviour
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Improved Collections against Projections
FY
16/17
FY
15/16
FY 14/15
FY 13/14
FY 12/13
FY 11/12
Apr
101.1%
99.2%
99.0%
105.1%
99.9%
100.0%
May
112.0%
110.1%
111.5%
105.1%
99.9%
90.8%
June
114.3%
100.6%
89.2%
89.6%
101.7%
92.8%
Qtr. 1
109.3%
103.1%
98.3%
99.5%
100.6%
94.0%
July
100.3%
99.7%
104.6%
106.8%
98.7%
103.0%
Aug
104.5%
93.3%
75.3%
77.3%
92.5%
107.6%
Sep
98.5%
113.8%
92.2%
102.0%
89.8%
89.1%
100.3%
103.6%
90.4%
95.1%
93.4%
99.9%
94.1%
97.2%
96.8%
97.2%
Qtr. 2
YTD
104.8%
103.3%
Sources: TAJ – Revenue Accounts, MoFPS
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Monitoring & Evaluation
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TADAT Internal Assessment - 2016
• Internal controls are in
place to monitor Key
Performance Indicators
• KPIs are framed in line
with TADAT
• Reports generated from
RAiS will be used to
validate KPIs
• Quarterly reports
submitted to IMF
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TADAT External Assessment - 2017
• TADAT Team to be
invited to conduct a
second assessment
• 3rd quarter of FY
2017/18
• Independent report of
Performance Outcome
Areas.
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Our Vision
WORLD-CLASS
TAX
ADMINISTRATION
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