© 2005 ibfd, your portal to cross-border tax expertise trends in the modernisation of tax...
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© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Trends in the modernisation of Tax Administrations
Utrecht, 1 July 2005
Victor van Kommer
IBFD www.ibfd.org
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Items to discuss
• Main trends
• Risks in modernization
• What are the challenges
• An example: integrity
• An example: resources
• Prototypes of organisational culture
• Cultural differences
• Organisation in five parts (Mintzberg)
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Main trends
• Large Taxpayer units• Strengthening Taxpayer service and public
awareness• Autonomy/ Agency model• Risk assessment• Capacity building/HRM and training policy• Integrity/internal control/evaluation process• Performance management• Involvement in tax policy
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Risks in modernization1. National approach (multinationals are global
organised)
2. Supply driven Anglo-Saxon methodologies
3. Direct taxation overestimated?
4. Exchange of information / Processes are seldom organised
5. International cooperation more at the managerial level then at the operational level
6. Enlargement of management and supporting processes the organisational disease of this decade?
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
What are the challenges?• Continuous learning program• Management as facilitator• International cooperation/ int. audit program• More understanding for the economic environment is
necessarily• Real client management (more in attitude then in name
and structure)• ICT has to become a supporting process ( ICT was to
much a driver)• A future role for Tax administrations as the public
databank?• To abandon control mentality and to think in influence
(effectiveness instead of efficiency)
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Integrity
• Corruption is a correction on aberrations in society and organisations
• Answer is to work on the conditions instead to fight corruption
• Use corruption cases as learning examples what went wrong, what were the weak spots in the organisation
• Challenge is to compete with the attractiveness of corruption and to make the process behind it more transparent
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Resources
• In Western Europe many tax administrations are male dominated
• In Eastern Europe female dominated• But both types suffer from a middle age dominance
and less attractiveness for younger professionals
• Expensive, more experienced, innovative?• And tremendous training needs in the near future
(after retirement of the current generation)
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Prototypes of organisational culture (1)
Equal
Taskoriented
Personoriented
Hierarchy
Learning organisation
Pyramidal organisation
Result drivenorganisation
Family orientedorganisation
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Prototypes of organisational culture (2)
Equal
Taskoriented
Personoriented
Hierarchy
Scandinavia
USA
Germany
France
SouthernEurope
Latin America
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Prototypes of organisational culture (3)
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Reaction in stress situation
Equal
Taskoriented
Personoriented
Hierarchy
Power abuse More rules
Dream on Targets and sanctions
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Cultural differences
• Low need for structure• Mutual adjustment
• Task prior to relationship• Minimum amount of targets
and control• Strategic planning
• No news is good news
• Conflicts not threatening • Fulfilment
• High need for structure• Direct supervision and
standardisation• Relationships before task• Group targets with formal
control• Short term precise planning
and strict implementation • Boss has to invest much
energy to obtain negative feedback
• Strong conflict avoidance• Security and secure career
Netherlands Middle East
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Organisations in five parts (Mintzberg)
Operational Core
Middle management
Techno structure SupportStaff
Top management
United Kingdom
USA
France
Germany
Asia/ Middle East
© 2005 IBFDWWW.IBFD.ORG, Your Portal to Cross-Border Tax Expertise
Conclusion
A global language for tax administrations doesn’t
exists