Corporate Plan SUMMARY

Transcription

1 Corporate Plan SUMMARY

2 Table of Contents 1.0 INTRODUCTION 3 Scope and Funtions of the Authority GUIDING PRINCIPLES FOR OUR BUSINESS GOALS, OBJECTIVES AND STRATEGIES 7 Key Result Areas: Revenue Collection 8 Compliance 13 Border Security 17 Customer Service 20 ANNEXES Annex 1: Key Performance Indicators and Targets 2007 REVENUE PERFORMANCE TARGETS 24 OTHER KEY PERFORMANCE INDICATORS AND TARGETS 24

3 1.0 INTRODUCTION About the Authority FIRCA was established as a Statutory Authority under the Fiji Islands Revenue & Customs Authority Act 1998 and encompasses the operations of the former Fiji Islands Inland Revenue Service and the Fiji Islands Customs Service. FIRCA commenced operations on January 01, 1999.

4 Introduction This Corporate Plan documents the strategic direction of the Fiji Islands Revenue & Customs Authority (FIRCA) for the period It is to be noted that the Plan is a rollover of the Corporate Plan. The document is intended to communicate the corporate philosophies of the Authority and provide information about the Authority s major activities in the next three years. It is also being prepared in compliance with the requirements of the FIRCA Act In the next three years, the Authority will continue to focus its strategies on the four identified Key Result Areas (KRAs), and align them to the organisation s vision and the Government s expectations of FIRCA. The strategies have been developed under a number of assumptions, keeping in mind the operational constraints and challenges the organisation encounters. To enable assessment of performance, a number of Key Performance Indicators (KPIs) have been identified, both of a financial and non-financial nature. These KPIs would also be used in the implementation of the Performance Management System for evaluation of staff performance. The Authority administers the following Acts: i) Income Tax Act (Cap 201) ii) Land Sales Act (Cap 137) iii) Customs Act 1986 iv) Customs Tariff Act 1986 v) Excise Act 1986 vi) Gambling Turnover Tax Decree 1991 vii) Value Added Tax Decree 1991 viii) Merchandise Marks Act (Cap 241) ix) Wreck and Salvage Act (Cap 198) x) Hotel Turnover Tax Act 2006

5 Scope and Funtions of the Authority Under the FIRCA Act, the functions of the Authority are: i. ii. to act as agent of the State and to provide services in administering and enforcing the laws specified in the First Schedule of the Act; generally to exercise all functions and perform all duties carried out by the Inland Revenue Department and the Fiji Islands Customs Service; iii. to advise the State on matters relating to taxation and customs and excise and to liaise with appropriate Ministries and statutory iv. v. bodies on such matters; to represent the State internationally in respect of matters relating to taxation or customs and excise; and to perform such other functions as the Minister may assign to the Authority.

6 2.0 Guiding Principles for Our Business Where we want to be in the future... VISION TO BE THE PREMIER REVENUE COLLECTION AND BORDER MANAGEMENT AGENCY IN THE REGION How we conduct our business... VALUES QUALITY TIMELINESS PROFESSIONALISM INTEGRITY TEAMWORK COMMITMENT What we do... MISSION COLLECT REVENUE ENHANCE COMMUNITY PROTECTION FACILITATE TRADE PROVIDE QUALITY ADVICE TO GOVERNMENT

7 3.0 Goals, and Towards the achievement of the organisation s mission, a number of strategies have been identified to be implemented in this Plan period. These are outlined in the following tables. The Performance Indicators for measuring the level of performance are outlined in Annex 1 of this document, and finer details are provided in the organisation s 2006 Statement of Corporate Intent.

8 KEY RESULT AREA: REVENUE COLLECTION We are responsible for collecting revenue for the Government to fund the National Budget. GOAL: To collect all revenue (taxes and duties) due to the Government To collect revenue as forecasted for the years by the Government I. i. Diligently follow-up lodgment of taxpayer ii. iii. returns Debt Recovery and Prosecution Develop assessing timeline and achievement plan iv. v. Create a Post-Audit section Implementation of payments at Post Offices vi. Tax payer Charter completed by end of II. Provide Quality Advice and information to Government on taxation and customs matters 2007 Conduct out research and analysis a. Carry out regular forecasting and modeling exercises b. Conduct a study of the underground economy, and research on international experience on fiscal and taxation policies c. d. Establish Policy Development process Develop acceptable Forecasting and Modeling techniques e. Timely response to queries relating to tax Have a legislative framework that is conducive to the current operating environment and customs III. i. Harmonise and improve all FIRCA ii. administered laws by end of 2007 Research provisions used in other regimes that are relevant to Fiji

9 KEY RESULT AREA: REVENUE COLLECTION IV. Improve Customer Services, Public Relations and Taxpayer Education i. Enhance functions of: a. Taxpayer Education and Publicity Unit b. Technical Interpretations and Procedures Unit c. Public Affairs and Marketing Unit ii. iii. iv. Develop Customer Service Plan Conduct Customer Survey Continue dialogue and communication with stakeholders (importers, exporters, travel agents, private bonded warehouse, etc.) on customs requirements and developments v. Further develop established Customer Services Centres vi. Install customer enquiry facilities and equipment - queuing system in Lautoka and Suva by end of 2007 vii. Explore possibility to introduce on-line processing through portals by end of 2009 viii. Implement customer mobile booths by end of 2009 ix. Taxpayer newsletters and reminder for important tax dates, newspaper publications and radio talk back shows and organising workshops x. Improve communication with stakeholders (monthly/quarterly meetings)

10 KEY RESULT AREA: REVENUE COLLECTION 1 0 Recruit and retain a productive and motivated workforce V. i. Attract, develop and maintain competent and motivated staff a. Appoint right people for the right positions b. c. d. e. Train staff and encourage multi-skilling Staff rotation Succession planning Develop staff to be competent in use of technology and business applications f. Consider appropriate staff remuneration and benefits g. Train staff to comply with organisation procedures and policies

11 KEY RESULT AREA: REVENUE COLLECTION VI. Improve business processes and administration of resources, enhance capability and effectiveness of our business systems i. Review business processes, and design and implement efficient service delivery systems (SDS) by end of 2009 a. Develop systems that are efficient and responsive to customer requirements b. On-line lodgments and processing by end of 2008 c. Data cleansing project completed by end of 2009 ii. Upgrade Information Communication and Technology (ICT) System a. Explore possibility of introducing online lodgments and processing b. Customs Business process reengineering project completed by end of 2007 c. Tax business process re-engineering completed by 2009 d. Implement on-line business processing by 2009 e. f. Self assessment of tax by end of 2009 Capturing return information electronically by end of 2009 g. All Customs excise factories to be online by June 2007 h. Implement ASYCUDA World by end of 2009 iii. Commence E- storage of Tax/Sad records by encouraging scanning of income tax returns, 1 1 SADs and correspondences

12 KEY RESULT AREA: REVENUE COLLECTION 1 2 VII. Encourage information sharing and networking i. Promote teamwork and teambuilding ii. Share information and promote networking within the organisation and with other key stakeholders such as LTA, Ministry of Energy and Environment VIII. To maintain harmonious working relations iii. i. FITS and TRIMS interface to be completed by end of 2009) Implement networking and meetings within Divisions (monthly) and with other Divisions (quarterly)

13 KEY RESULT AREA: COMPLIANCE We are to ensure that our customers comply with the laws that the Authority administers. GOAL: That there will be an increase in the level of compliance with all FIRCA administered laws Enforce legislative provisions on compliance I. i. Conduct Audit and risk Analysis a. Develop and maintain an audit plan, and modernise and maintain audit manuals b. Conduct audits on selected large and international taxpayers, small and medium taxpayers, non-profit bodies, audio-visual rebates claimants, selected taxpayers based on targeted industries, and selected taxpayers suspected of being involved in illegal or fraudulent industries c. Ensure integrity of ledgers, collect overdue debts, conduct income matching activities, and conduct post compliance audits on selected stakeholders d. Carry out risk analysis on all large taxpayers and international issues, small/medium taxpayers, selected non-profit bodies, and all taxpayers suspected of being involved in illegal or fraudulent activities. ii. Conduct lodgment enforcement activities 1 3 iii. Debt recovery and prosecution

14 KEY RESULT AREA: COMPLIANCE 1 4 II. Establish a Risk Management Framework and Supply Chain Security Regime i. Develop a Risk Management Framework and Supply Chain Security Regime a. Business Continuity Planning b. Business Intelligence /Environment Scanning c. Disaster Recovery d. Profiling III. Provide Quality Advice and information to Government on taxation and compliance matters i. Conduct research and analysis a. Conduct a study of the underground economy, and international best practices on auditing and risk management IV. Encourage information sharing and networking i. ii. Promote teamwork and teambuilding Share information and promote networking within the organisation and with other key stakeholders such as Fiji Institute of Accountants and Fiji Law Society V. i. Attract, develop and maintain competent Recruit and retain a productive and motivated workforce and motivated staff a. Appoint the right people for the right positions b. c. d. e. Train staff and encourage multi-skilling Staff rotation Succession Planning Develop staff to be competent in use of technology and business applications f. Consider appropriate staff remuneration and benefits g. Train staff to comply with organisation procedures and policies

15 KEY RESULT AREA: COMPLIANCE VI. Promote good governance and improve sound administration of resources i. Review the Governance Charter and disseminate information within the organisation a. Train staff to comply with all organisation policies and procedures b. Comply with all reporting requirements of the Fiji Islands Revenue and Customs Authority Act, and submit to the Minister of Finance the Annual Corporate Plan, Statement of Corporate Intent, Half-Yearly Report, and Annual Report c. Implement recommendations of internal audit reports ii. Develop a Taxpayers Charter VII. Have a legislative framework that is conducive to the current operating environment i. Harmonise and improve all FIRCA administered laws by end of 2007 VIII. Improve Customer Services, Public Relations and Taxpayer Education i. ii. Promote teamwork and teambuilding Share information and promote networking within the organisation and with other key stakeholders iii. Link up with Customer Services programs developed for improvement in revenue collection (Refer to strategies identified for KRA 1 Revenue Collection) 1 5

16 KEY RESULT AREA: COMPLIANCE 1 6 IX. Improve business processes and administration of resources, enhance capability and effectiveness of our business systems i. ii. Review business processes, and design and implement efficient SDS Upgrade Information Communication and Technology (ICT) System a. Explore possibility of introducing online lodgments and processing by end of 2009

17 KEY RESULT AREA: BORDER SECURITY We facilitate trade and control movements of people, goods and crafts at all our ports of entry and national borders. GOAL: To maintain safety and security at our borders at all times. Enhance Primary Line and Border Control function I. i. Capacity building a. Installation of supply chain security equipment such as Close Circuit Television (CCTV) and ion scan b. Training of staff in the areas of intelligence in drug trafficking, money laundering and financial transaction, people smuggling, arms and ammunitions, documentary fraud, Ozone Depleting Substances (ODS), and Convention on Illegal Trade on Endangered Species (CITES) II. Establish Risk Management Framework and Supply Chain Security Regime i. Develop a Risk Management Framework and Supply Chain Security Regime a. Business Continuity Planning b. Business Intelligence /Environment Scanning c. d. Disaster Recovery Profiling 1 7 III. i. Conduct regular meetings with law Improve relationship with law enforcement agencies, and improve customer services, public relations, and promote awareness on legislative requirements ii. enforcement agencies, importers and exporters, private bonded warehouses, travel agents, trade commissions, foreign missions and the general public Administer Memorandum of Understanding signed with the Land Transport Authority

18 KEY RESULT AREA: BORDER SECURITY 1 8 IV. Promote information sharing and networking i. Form strategic alliances with neighbouring countries a. Revision and development of mutual agreements with Australia and New Zealand V. Recruit and retain a well trained, productive and motivated workforce i. Attract, develop and maintain competent and motivated staff a. Appoint right people for the right positions b. c. d. e. Train staff and encourage multi-skilling Staff rotation Succession planning Develop staff to be competent in use of technology and business applications f. Consider appropriate staff remuneration and benefits VI. Have a Legislative framework that is conducive to the current operating environment i. Harmonise and improve all FIRCA administered laws by end of 2007 VII. Provide quality advice and information to government on taxation and security matters i. Conduct research and analysis on Border Management and Security issues

19 KEY RESULT AREA: BORDER SECURITY VIII. Improve sound administration of resources i. Review all business process, and design and implement efficient service delivery systems by end of 2009 ii. Clearly document procedures and policies, and job manuals, and train staff on application iii. Manage cost centers budgeting as per Finance Directions IX. Have the most effective technology for our business systems i. Upgrade Information Communication and Technology (ICT) System a. Integrate Internal Information Technology (IT) systems b. Interface IT systems with those of external stakeholders such as Immigration Department, Companies Office, and Land Transport Authority c. Design and install systems for Supply Chain Security and other security mechanisms 1 9

20 KEY RESULT AREA: CUSTOMER SERVICES 2 0 We will provide excellent customer services within the organisation and to our external customers. GOAL: To be efficient and effective in the delivery of services. To have the most effective technology for our business I. i. Upgrade Information, Communication and Technology System a. Integrate internal Information Technology (IT) systems b. Interface IT systems with those of external stakeholders such as Immigration Department, Companies Office, Land Transport Authority c. Design and install systems for Supply Chain Security and other security mechanisms

21 KEY RESULT AREA: CUSTOMER SERVICES II. Recruit and retain a well trained, productive and motivated workforce i. Attract, develop and maintain competent and motivated staff a. Appoint right people for the right positions b. c. d. e. Train staff and encourage multi-skilling Staff rotation Succession planning Develop staff to be competent in use of technology and business applications f. Consider appropriate staff remuneration and benefits ii. Implement Performance Management System by January 2007 iii. Train staff on organisation policies and III. Improve sound administration of resources, and have an efficient service delivery system i. ii. iii. procedures Review all business processes Develop systems that are efficient and responsive to customer requirements Clearly document procedures and policies, and job manuals, and train staff on application 2 1

22 KEY RESULT AREA: CUSTOMER SERVICES 2 2 IV. Provide quality advice and information to Government on taxation and custom matters, as well as on other areas such as legal management of the tax administration function of the Government i. Conduct research and analysis a. Conduct a study on the Underground Economy and possible revenue sources in tax areas b. Research and study international best practices in all aspects of the organisation s operations (policy, legal, operational, and administrative) V. i. Provide equipment that are OHS compliant VI. Provide healthy and safe working environment Maintain harmonious working relationship ii. i. Provide training on OHS legislation, policies, and procedures, and ergonomics. Conduct regular meetings with staff to disseminate information and discuss issues by improving the communication strategies across FIRCA

23 2 3 Key Performance Indicators and Targets Annex 1

24 2007 Revenue Performance Targets * 2 4 Revenue ($ million) Income Tax Revenue Value Added Tax Revenue Customs and Excise Revenue Hotel Turnover Tax 17.0 Total Revenue 1,439.3 Operating Grant 36 Cost of Collection 2.5% * - These targets are subject to change during plan period Other Key Performance Indicators and Targets Government Strategic Development Plan KPI FIRCA s performance, being the revenue collection agency of the Government, will be assessed in terms of the revenue it collects. The Government s target as set out in the DRAFT Strategic Development Plan was that the Revenue projections are based on a minimum continuation of present levels of some 27% of GDP. Considering the constraints and challenges that FIRCA encounters and the revenue growth trend noted earlier in this document, the organisation is proposing that the target of tax to GDP ratio in the next three years remain at 25%.

25 Organisational KPIs Increase in revenue: up to 3% per annum; Ratio of debt level (excl. Govt. debts) to net revenue collected: to be less than 5%; Work within approved budget; Increase in number of taxpayers audited over the period;reduction in time taken to process forms and serve customers; Rejection of containers by other ports: nil; Success rate for legal cases approved by CEO: 90%; Maintain a harmonious working relationship; Systems downtime to be less than 5%; 100% compliance with all statutory reporting requirements. Note: More detailed performance measures are contained in the 2007 Statement of Corporate Intent. 2 5

26 2 6 The following performance indicators are specifically related to the provision of services by Revenue Collection and Border Control Divisions. REVENUE COLLECTION SERVICES PROCESSING SALARY AND WAGE EARNERS RETURNS 80% processed within 4 weeks 100% processed within 8 weeks FORM B - BUSINESS AND PARTNERSHIPS 80% processed within 4 weeks 100% processed within 8 weeks FORM C - COMPANY / CORPORATE 80% processed within 4 weeks 100% processed within 8 weeks VAT (New Dwelling House) 80% processed within 4 weeks 100% processed within 8 weeks COMPLIANCE All Income Tax and VAT taxpayers who have not filed their returns are to be contacted within ten days after due filing date. All taxpayers who have not paid on due date will be contacted after thirty days of the due date for payment.

27 BORDER CONTROL COMPLIANCE 100% of air and marine passengers/crew as well as cargo subject to an alert or risk profile will be processed in accordance with the alert/risk profile instruction 80% of the deployment hours and location for the marine vessel are carried out in accordance with the marine vessel deployment plan 100% of exports will meet the necessary supply chain requirements. QUALITY SERVICE DELIVERY 90% of departing air and marine passengers/crew will exit Customs control points within 30 minutes of queuing Complaints of importers and exporters acknowledged - Within 48 hours 2 7

28 2 8 Fiji Islands Revenue & Customs Authroity Private Mail Bag, Suva Fiji Islands Phone: Fax: info@frca.org.fj ~ END ~