SAP – tax and revenue management

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t is common that public sector organizations face exceptional challenges within the administration and management of public revenues. The financial lifelines of government can be represented by effective tax collection and revenue management. Without sufficient revenue, public sector organisations are unable to deliver essential services that taxpayers expect and need.

With the SAP module, Tax and Revenue Management, one is able to mitigate challenges efficiently and cost effectively. Some of the main features which SAP Public Sector supports Tax and Revenue Management processes consist of:

  • Taxpayer Management
  • Collection and Disbursement
  • Case Management
  • Financial customer care and dispute management

Modual Integrated Systems have partnered with E&Y South Africa to provide a holistic SAP Tax and Revenue Management solution, providing a single view of the taxpayer as well as supporting many revenue types.

It is able to be configured, upgraded, standardized and also has a lower risk and cost than other custom constructed solutions.

 


 

Benefits of implementing Tax and Revenue Management
  • A complete view of taxpayer and constituent accounts and details
  • Increased voluntary taxpayer compliance through a one-stop online collection function that provides a single face of your agency to taxpayers
  • Decreased outstanding receivables, enhancing overall collection rates and reducing noncompliance
  • A single logical master-data frame- work, with selective views according to the individual needs of the respective public service
  • Shorter inquiry response time, where taxpayers can easily obtain quick, ad hoc information on their account status, including open balances, filing obligations and dead- lines, and anticipated refunds
  • Improved call center contact rates, because inquiries can be routed and answered faster
  • Increased efficiency through mass processing of tax returns
  • Faster detection of noncompliant taxpayers and nonfilers
  • More efficient use of resources in audits and investigations

 


 

Customers using SAP Tax and Revenue
  • SARS
  • Zimbabwe Revenue Authority
  • Mauritius Revenue Authority
  • HM Revenue & Customs, United Kingdom
  • INFONAVIT, Mexico
  • City of Gelsenkirchen, Germany
  • Queensland Office of State Revenue, Australia
  • British Columbia Ministry of Provincial Revenue, Canada
  • City of Luxembourg
  • City of Hamburg, Germany
  • City of Frankfurt, Germany
  • New Zealand Inland Revenue
  • Florida Department of Revenue, United States
  • City of Lisbon, Portugal
  • City of Biel, Switzerland
  • State Agricultural Intervention Fund, Czech Republic
  • City of Barcelona, Spain
  • City of Vienna, Austria
  • Upper Austria State Government, Austria
  • Washoe County, Nevada, United States
  • Bundesargentur für Arbe

 


 

Case Study

Mauritius Revenue Authority (MRA)

The MRA is responsible for tax collection and accounting of all revenues. The MRA uses the Tax and Revenue module of the SAP Public Service software application to integrate all its data collection and data management functions. The main objectives of the MRA is to raise revenues, improve the efficiency of tax administration, improving taxpayer services, facilitating trade, as well as eliminating corruption and tax avoidance. Key strategies for achieving these objectives include integrated IT systems and having the ability to simplify processes, segment taxpayers, and strengthen audit capabilities. An IT solution was the most appropriate option for enabling these strategies.

The SAP Tax and Revenue application gives the MRA the capability to address the challenges that are typical to the financial divisions of public sector organisations.

Some of the main benefits are that:

  • it shortened the time needed to assess returns,
  • provides the flexibility required to implement new policies and laws quickly,
  • identifies and accesses un-captured revenue, and
  • greatly improved service to the taxpayer.

 


 

References:
  1. https://www.hu.capgemini.com/resource-file-access/resource/pdf/tl_Tax___Revenue_Management_____Reducing_the_Tax_Gap.pdf
  2. http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/a0ed9166-7865-2d10-b592-fc6b1db41925?QuickLink=index&overridelayout=true&48438641336116
  3. http://www.itweb.co.za/index.php?option=com_content&view=article&id=4571
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