Transcript Leaves

Joint ATAF – Korea Conference on
Domestic Resource Mobilisation:
Challenges to African Tax Policy and
Administration – Session 6
Building Sustainable African Industries – the
Challenges and Opportunities for Revenue
Administrations: The Case of Mauritius
Presented By: M.S.Lal, Director-General
Mauritius Revenue Authority
4 April 2011
Contents
1. The Mauritian Economy
2. Policy Responses to Crisis
3. Revenue Administration in Mauritius: MRA
4. Strategic Objectives of MRA
5. Change Management at MRA
6. Opportunities and Challenges
-
Automation
Taxpayer Education, Outreach & Feedback
Service Delivery
Risk Management
Trade Facilitation & Border Protection
Tackling Corruption
The Mauritian Economy
 Population of 1.2 million inhabitants
 Upper Middle Income Country with a GDP per
capita of $ US 7,240
 Economic growth of 4.2% in 2010
 Tax to GDP ratio of 18%
 Initially Agriculture based
 Diversified into textile & apparel, tourism and
financial services
 New expanding sectors include fish
processing, ICT, hospitality and property
development
Policy Responses to Crisis
 Expansionary budget in 2008 apprehending the
crisis
 Additional Stimulus Package in Dec 2008 with the
following tax measures:
•
Tourism sector - suspension of solidarity levy on
hotels and environment levy on airlines &
exemption from environment protection fee for nonprofitable hotels;
• Construction sector – exemption from land transfer
tax & registration duty for big projects, reduction in
customs duty on iron bars;
• Other sectors – 2 additional years of income tax
exemption for freeport operators & freezing of plan
to lower import duty in 2009 & 2010
Policy Responses to Crisis
Economic Restructuring and
Competitiveness Programme in August
2010 to support enterprises, shore up
their finances and ensure their long
term resilience
Credit Support under two Schemes:
• 50/50 Matching Grant Scheme for SMEs
with turnover less than Rs 50 million
• 90/10 Grant Scheme for all companies
with the 90% grant by Government
repayable after a moratorium of 2 years
Revenue Administration in Mauritius: MRA
MRA:
- Was set up through an Act of Parliament –
MRA Act
- Has been in operation since July 2006
- Collects revenues on behalf of the
Government (more than 90% of tax
revenue)
- Administers revenue laws (16 taxes
administered which includes income tax,
VAT, Customs & Excise, Gaming etc)
Revenue Administration in Mauritius: MRA
- Is under the overall responsibility
of the Ministry of Finance
- Is administered and managed by
the MRA Board with a Chairperson
and six members
- Has a Director-General as the Chief
Executive Officer who implements
the policy of the Authority
- Consists of 13 departments each
headed by a Director
Strategic Objectives of MRA
The strategic objectives as laid down in the
2011-13 Corporate Plan are:
Promoting Voluntary Compliance
Providing Quality Services
Developing People, Processes & Technology
Facilitating Trade and Ensuring Border &
Society Protection
Strengthening Good Governance and
Improving Corporate Image
Change Management at MRA
Performance and Efficiency
New Human Resources Framework
Ethics and Transparency
Information Management System
Opportunities and Challenges
Automation
Taxpayer Education, Outreach &
Feedback
Service Delivery
Risk Management
Trade Facilitation & Border Protection
Tackling Corruption
Automation
Main Achievements
-
implementing Integrated Tax Administration
Solution (ITAS)
-
introducing e-filing and e-payment of tax by
individual taxpayers
-
initiating online registration of taxpayers engaged in
business
-
promoting e-filing service centres for companies
-
facilitating electronic submission of customs &
excise declarations
Automation
Future Challenges
-
ensuring e-filing and e-payment by all taxpayers
-
implementing Tax Portal On-line Service (TPOS)
allowing online enquiry on taxpayer account
-
implementing Record Management System to move to a
paperless organisation
-
developing virtual audit files
-
facilitating online objections to assessments raised
-
implementing Single Window Project for improved
cargo dwell time
-
executing on-line tracking system at freeport
Taxpayer Education, Outreach & Feedback
Main Achievements
-
setting up dedicated Taxpayer Education &
Communication Department
-
launching Taxpayer Mailing Service
providing tax updates freely &
electronically to subscribers
-
simplifying forms and returns
-
conducting Taxpayer Satisfaction Surveys
Taxpayer Education, Outreach & Feedback
Future Challenges
-
using communication websites (facebook, twitter) to
encourage e-filing
-
introducing taxation syllabus in secondary schools
-
revamping MRA’s website to improve quantity and
quality of information
-
putting in place Client Relationship Managers for
specialised taxpayers
-
holding Stakeholders’ Forum
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celebrating taxpayers’ weeks & giving rewards
Service Delivery
Main Achievements
-
issuing fast track VAT repayments within 7
days & others in 45 days
-
introducing cumulative PAYE to reduce number
and amount of refunds
-
effecting income tax refunds expeditiously (7
days for electronic & 30 days for manual)
-
issuing Tax Residence Certificates within 1
week
Service Delivery
Future Challenges
-
conducting tax audit at taxpayers’ premises or at MRA
with duly recorded proceedings
-
facilitating SMEs through presumptive taxes or
proposing a simplified accounting system for them
-
reducing VAT repayment for non-fast track cases to 30
days
-
refunding income tax claims within 20 days
-
reducing average waiting time from 10 mins to 6 mins
Risk Management
Main Achievements
-
introducing parametric selection of audit cases
-
having recourse to non-intrusive techniques for
tax audits (e.g 3rd party matching)
-
setting up Risk Management Unit in Customs for
expeditious release of goods
-
finalising a Business Continuity/Disaster
Recovery Plan
-
preparing risk registers & risk matrix for all
departments
Risk Management
Future Challenges
-
embedding risk management in corporate strategy,
day to day operations and management culture
-
setting up Risk Management Unit for income tax and
VAT
-
preparing risk management policy document and a
guidance manual
-
procuring & utilising advance Risk Management
Software
-
training staff on intelligence analysis and risk
management
Customs: Trade Facilitation & Border Protection
Main Achievements
-
establishing fast track clearance of goods (Blue
Channel)
-
using non-intrusive X-ray equipment
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initiating Cargo Community System
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providing advanced tariff ruling expeditiously
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establishing a valuation database for commonly
imported goods including second hand vehicles
-
removing resident officers from excise stations and
initiating post clearance audit
Customs: Trade Facilitation & Border Protection
Future Challenges
-
setting up Single Window Project with other agencies
for faster clearance of goods
-
implementing door to door customs - goods move
straight from customs to trader’s warehouse
-
introducing Authorised Economic Operator
programme
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extending excise stamps to spirits and beverages
Tackling Corruption
Main Achievements
-
setting up Internal Affairs and Audit Divisions to
manage integrity, promote best practices & controls
-
carrying out pre-employment integrity checks
-
requiring Declaration of Assets every 3 years
-
promoting a transparent & open office environment
-
ensuring minimum physical interaction between
officers & the public
-
abiding by the Code of Conduct & Ethics &
Prevention of Malpractice Manual
Tackling Corruption
Future Challenges
-
overhauling Standard Operating Procedures to ensure
that every taxpayer is treated in a fair, equitable and
just manner
-
introducing a whistle blowing programme in MRA Act
to protect and reward whistle blowers
-
issuing an approved Integrity Policy Statement
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ensuring a policy of zero tolerence to corruption
-
carrying out an Integrity Perception Survey
Other Challenges
drafting of a Tax Administration Act to simplify
-
and harmonise various generic administrative
provisions
-
expeditious resolution of disputes
-
expanding the network of Double Taxation
Avoidance Agreements
-
updating SOPs and expediting the issue of
practice notes and advance tax rulings
THANK YOU