Overhaul and image change for Inland Revenue

Sunday Newsday Report

Taxpayers view the Board of Inland Revenue (BIR) in a very negative light. Many regard it as a callous organisation that exists to take as much money as it can from their salaries. Commissioner of Inland Revenue Reform, Rawle Adimoolah, agreed, pointing out that the public viewed the BIR as a “big stick out for taxes.” Now comes news that the BIR hopes to change this perception in the near future, to one of a caring organisation, partnering with its “customers”, in an atmosphere of mutual respect and integrity. This is the goal of the new Reform Programme currently on stream. One can only hope, particularly when you have been waiting for years to get your tax refunds.

In October 2001, Cabinet authorised the establishment of a Reform Team comprising officers of the Inland Revenue Division to develop initiatives that would reform the Division to improve its efficiency and effectiveness. Adimoolah said a major focus of the reform will be the delivering of service, which would ultimately translate into greater voluntary compliance by taxpayers, in filing returns and paying taxes on time. In addition, several individual Units have been formed, including a Criminal Investigation Unit, to ensure that all outstanding taxes are collected from delinquent taxpayers. Adimoolah disclosed the details of the reform initiatives in the company of the Reform Team’s Public Relations Officer, Lyma Thomas, during an interview with Sunday Newsday last week.

Among the initiatives being pursued are programmes to facilitate and assist taxpayers in meeting their tax obligations, combat tax evasion, optimise the use of IT development and enhance employee development. Some of the projects undertaken to date are: the establishment of a Large Case Unit, introduction of a new computerised remittance system, re-engineering of the Returns Processing System, Integration of the Field Collections function, computerisation of PAYE records, enhancement of an Internal Audit Unit, establishment of an Inspection Unit and the launch of a website — which is now operational — www.IRD.gov.tt, and the development of a Human Resource Unit. The vision of the Division, said Adimoolah, is “to be the most efficient, effective and innovative tax administration, delivering excellent customer service in an environment of integrity, fairness and mutual respect.”

BIR goal: ‘Perfect returns’

One of the biggest challenges for the BIR department is the high number of “imperfect returns” being filed, said Adimoolah. He indicated that a large percent of the population submitted forms which were incompletely filled out, causing the department extra problems and delaying the processing of their returns and consequently, their refunds. “Our goal is to be able to process perfect returns within six weeks of receipt. “When people file imperfect returns and leave out half of the documents, it causes delays in having to contact them and wait for the documents,” he said.

The BIR is currently re-engineering its returns processing system to achieve certain objectives such as, the processing of a ‘perfect returns’ (no errors or missing documents), within six weeks and the contacting  of taxpayers within two weeks with respect of an ‘imperfect return’ (containing errors or misspelt documents). The BIR is working on developing certain databases that would obviate the need to contact taxpayers for certain information, such as approvals of deferred annuity and land and building receipts. There are also plans to launch a comprehensive tax education programme for the public, including going into the schools.

Pay As You Earn

Electronic services for improved compliance

Cabinet has re-cently approved the development of an  Integrated Tax Proces-sing System (ITPS) for Inland Revenue, which Adimoolah believes will contribute tremendously towards achieving its processing goals. “This project is likely to take up to three years but we are currently re-engineering the present operations  to see how we can improve efficiency until the new integrated system comes on stream,” he said. The option of making payments through the banks or TTPost is being explored and further down the road, the possibility of ‘e-payments’ and ‘e-filing’ returns from home or office, which would make it easier for taxpayers.

“The world is going that way, the US, Brazil and Argentina have done it and we are looking at going that way because TT is not a backward country, we are world class. The only problem is that it is taking a bit longer than we would like, but we have to be very careful since mistakes can be very costly and change very disruptive,” he said. A new computerised remittance system has been implemented and is being further refined.

When the system is fully operational, the following benefits would be derived:
(a) Taxpayers would be able to proceed directly to the cashier to make their payments instead of having to verify documents at the Counter clerk first as currently exists
(b) All taxpayers’ tax information would be available to the cashier on the computer terminal
(c) Taxpayers’ accounts would be updated within five days (which will assist the BIR in its collection drive)
(d) Shorter lines and less time spent at the cashier’s unit

Adimoolah also pointed out that another advantage to taxpayers’ accounts being updated within five days of payment is the avoidance of embarrassment to the Board and undue “harassment” of taxpayers. “We don’t want a Tax Collector visiting a taxpayer to collect arrears, only to be shown a receipt indicating the  payment was made some three months ago,” he explained.

Criminal Investigation Unit to track tax evaders

Customer convenience

Adimoolah said the inconvenience of having to go to three different buildings to get a BIR number, a VAT number and a PAYE number, will soon be a thing of the past. Efforts are being made to merge these Units as well as the Tax Payers Assis-tance Unit of VAT and Income Tax.

In addition, the Motor Vehicle Unit has already been merged at the VAT building, so persons seeking Motor Ve-hicle Tax and VAT exemptions can get this at one stop now. The two Collection Units have also been merged, providing for greater efficiency in the collection of arrears.
“A tax collector visiting a taxpayer now collects all the different taxes outstanding.

This replaces the old system of a collector knocking on the taxpayer’s door, one day for Income Tax, another collector visiting the next month for VAT arrears and yet another, perhaps two months after, for PAYE arrears,” said Adimoolah.