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INTRODUCTION In FY 2002/03 it was noted that one of the main challenges of the continuity and sustainability of the Tax Administration Reform Project was that of effecting cultural changes within the organization that involved cultivating new attitudes with respect to the role of management. In FY 2003/04 with the introduction of the performance management system managers developed a deeper awareness of their role within the organization. Implementation of the performance management system will be completed in FY 2004/05. In December 2002 the Public Services Commission delegated to the Financial Secretary the functions of appointments, separations, discipline and training for the Tax Administration Departments. Administrative measures to facilitate the assumption of functions by the Financial Secretary were successfully implemented during FY 2003/04. FY 2003/04 also witnessed the launching of a taxpayer education programme to disseminate information on the appellate system administered by the Taxpayers Appeals Department. The overall response of taxpayers to the taxpayer education programme has been positive, as the number of taxpayers appealing decisions have increased steadily. The Taxpayers Appeals Department had estimated that it would receive approximately 27 appeal cases during the year, however, 39 were received. The average customer service rating for twenty (20) completed cases was 4.25 on a scale of 1 to 5. At end-March 2004 the number of taxpayer registration numbers (TRN's) issued since inception totalled one million, three hundred and eighty-five thousand, eight hundred and eight (1,385,808). Improved Service Delivery Improving the delivery of service is a major priority of tax administration. Although the current structure of tax administration supports a public relations unit in all departments in addition to a centralised taxpayer service unit, a special division - Taxpayer Support Services (TSS) - was established to ensure that the public is properly informed about the operations of the tax departments, the services offered, the application and use of the tax laws and the rights and obligations of taxpayers. To aid the dissemination of information strategic alliances have also been formed with stakeholders such as business associations (ICAJ, SBAJ, PSOJ, JEA etc), media houses and business groups (supermarket chains etc). Through partnerships, sector groups are encouraged to include tax presentations in their workshops and seminars. This programme will be expanded in FY 2004/05 with the development of an official registry of target groups to better determine their needs and thereby develop more appropriate programmes. To facilitate customers with queries there is a 1-888-TAX HELP line at both the Tax Administration Services Department and the Jamaica Customs Department. In addition to the HELP lines, there is a website (www.jamaicatax.gov.jm) where persons can obtain information on the tax departments and services provided or make queries. The Customs Department also provides online services for the payment of import duties and other relevant customs taxes and fees. This online service commenced in January 2003 with fifteen (15) brokers and four (4) Customs sites. The e-payment facility has experienced slight increases in entries processed since implementation. To date the facility has processed 2,001 entries or 2% of a total of 88,551 entries processed. Collections associated with the e-payment process total $320m or 1% of total revenue collections. A special service (fast track) is offered to brokers who have a low error rating (5% or less). This fast track system aims at processing entries within 2 hours. The e-manifest system that was implemented to facilitate the submission of a carrier's manifest before the vessel arrives, remains under utilized as only 3 shipping agents currently use it. Action has been taken to increase its use as it has implications for maximizing revenue collection. Recently, the Government signed an IDB loan for US$23mn (to be administered by the Ministry of Commerce and Technology), which will go towards the funding of e-government services. The filing of a selected list of taxes using electronic means has been identified as a key component of this project. JAMPRO, FSL and Customs along with other stakeholders have officially launched the Jamaica Trade Point (an electronic export system). This will bring together the export functions of several agencies, namely Customs, MOA, BSJ, Trade Board, JAMPRO and JEA to a single website where registration through to approval will be facilitated. In September there was a demonstration of this system to the heads of the key agencies involved. Improved levels of compliance In December 2003 a team comprised of IRD and TAAD officers was formed to collect arrears of $5.4bn from employers who deduct tax under the PAYE system. At end-February 2004 $709mn or 13% of the $5.4bn had been collected. During FY 2003/04 tax administration investigated sixty-four (64) tax evasion cases, which were assessed at six hundred million dollars ($600mn). Of this amount, two hundred and fifty five million dollars ($255mn) represents penalties levied. In order to widen the tax net, the tax administration targeted the identification of non-filers. At end-February, five thousand seven hundred and eighty seven (5,787) non-filers had been assessed at $3.81bn. Additionally, seven thousand, two hundred and sixteen (7,216) asset tax assessments totalling $184mn were completed. To improve the coverage of audits, a large case business programme was implemented. This programme targets large businesses. To date forty (40) cases have been completed resulting in the identification of an additional $2.5b in taxes. The formation of a Risk Management Unit and upgrading of the Compliance and Valuation Units at Jamaica Customs alongside the utilization of the new Valuation, Intelligence and Risk Management System (VIRMS) has resulted in additional revenue of twelve million, five hundred and forty two thousand dollars ($12,542,000) being collected up to end-February 2004. Improved use of technology to broaden methods of collection The Integrated Computerized Tax Administration System (ICTAS) has 7 modules, which integrates with eight (8) functional areas of Tax Administration:
ICTAS is eighty five percent (85%) implemented to date. The Registration, Taxpayer Accounting, Revenue Accounting, Audit and Compliance Modules, which represent the core functionality, are fully operational. However, major remedial work is being done to improve the performance of the functions for Tax Accounting, Compliance and Audit & Classification (Audit Selection). Electronic Filing and Case Tracking functions are not yet fully on stream. Further enhancements to the system include:
The completion of remedial work and full implementation of ICTAS is programmed for FY 2004/05. One Stop Tax Compliance Certificate (TCC) The TCC One Stop Service has been implemented at the Constant Spring, Spanish Town, May Pen and Montego Bay Revenue Service Centres, as well as the Mandeville, St. Anns Bay and King Street Collectorates. Persons can now apply for their TCC by completing an on-line form and e-mailing their request via the Tax Administration web site. This process will be made more efficient with the planned electronic data exchange between the agencies using the Internet. Currently, payment information is being provided to HEART, NHT and NIS via the Internet, but while NHT and HEART are at an advanced stage to provide compliance status electronically, NIS does not yet have the technical infrastructure to do so. Automated Motor Vehicle System (AMVS) The first phase of the online Automated Motor Vehicle System to update records of commercial and PPV plates was completed. Third-Party Collection Agencies (TPCA) & Interactive Voice Response System (IVR) During peak collection periods - such as month-ends - long queues build up at tax offices and as a result service to taxpayers deteriorates. This acts as a deterrent to the timely payment of taxes and reduces voluntary compliance. To address the problem the Government will utilize the services of third-party collection agencies as well as an interactive voice response system to collect specified taxes. The interactive voice response system will enable the payment of taxes via the telephone. Implementation of the new collection methods will be in phases. The first phase will commence with the collection of property tax and traffic tickets. Jamaica Trade Point Portal An Internet trade facilitation Portal where exporters and importers can carry out online transactions in a seamless manner with several trade-related agencies has been launched. The processes that can be done online are:
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