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Tax Administration
Tax Administration, being one of the most important parts of the government included in the budget process, shall perform its duties promptly, effectively and unseen, without putting unnecessary strains on the budget and normal business operations.
Digitalisation can play a key role in helping tax authorities lower compliance and administrative costs, collect more revenue more efficiently, enhance transparency and service to taxpayers, and accommodate big data flows.
Without fulfilling this vision, tax administration will not keep pace with the digital transformation of wider society, will find it harder to reduce burdens, create new policy approaches, and reduce compliance gaps. Tax Administration 3.0 is an ambitious vision and achieving it is an evolutionary journey, where progress will be more rapidly in some areas, and more slowly in others. Over time though this combines to form a more fully digitally transformed tax administration.
According to OECD, Tax Administration 3.0 identifies 6 core building blocks in digital transformation.
Digital by design
As tax administrations deliver more and more of their services online, digital security, digital verification and digital identity is becoming the cornerstone of tax administrations’ work. Tax administrations are leveraging their expertise and data sets to not only give taxpayers greater self-service access to tax administration services, but also to third parties and to wider government systems. Tax administration 3.0 also allows the authority to simplify existing procedures of data collection and registration services and open up new channels of communication and engagement between public and private sectors.
Data-driven public sector
Administration 3.0 opens the way to a new approach to data collection and analytics. Due to the dramatic increase in the volume of accurate data collected, government agencies have much more resources to use modern analytical tools, including big data analysis and a multi-purpose risk monitoring system, to make decisions. The availability of such accurate and extensive data allows the public sector to use data as a key strategic asset in planning, implementing and monitoring public policies.
Open by default
The Government is open by default when the public authorities, in accordance with the current legislation, provide the public with the opportunity to use modern resources to identify social needs and develop public policies in accordance with national and public interests. Openness by default means communicating, informing, consulting and interacting with external and internal partners to jointly create public value, crowdsource collective knowledge and create public sector analytics based on a design-oriented culture.
Government as a platform
Administration 3.0, in addition to new precise data flows and ways of interacting with the private sector, assumes that the state will be able to provide a unified tool for managing functions and capabilities – the unified government platform. Moreover, the platform is a direct way to create a state ecosystem in which various structures, having a single secure information, can promote new offers in the service sector, introduce new types of control over the legitimacy of processes and simplify the processes of requesting and processing information. Thus, government as a platform is not just a matter of deploying various technology platforms to improve the user experience of using a given service, it represents a more comprehensive approach to solving problems that the service team may face interrupting them from focusing on the needs of users.
User-driven
A user-driven approach describes a situation in which new tools and data allows the state to direct the policy fully based on the needs of society. On the other hand, these innovations enable citizens and businesses to indicate and communicate their own needs and thus manage the development of public policies and public services. This approach meets the expectations of society and business that public services should be designed according to their needs and be adaptable to different user profiles.
Proactiveness
Proactiveness is the ability of governments and civil servants to anticipate people's needs and respond quickly to them in order to simplify users' organisational processes (data collection and service provision). Successful proactivity in the provision of services directly depends on the ability of the state to successfully analyse and use new information resources. That is why creating the conditions for a data-driven public sector is an important factor contributing to the prosperity of proactive government. It should be easy for the state agencies to use analytical data as a starting point for new actions or important activities. Public sector organisations need to ensure that information received from users (either by providing explicit feedback or obtained as a result of using the service) is passed on to the administration so that public sector organisations can use it to interact, share information, educate and inform in a simple and timely manner. In addition, all decision makers, not just data analysts, should have access to this information in ways they can. Leaders should also be able to share and discuss this knowledge