© 2005 IBFD, Your Portal to Cross-Border Tax Expertise Trends in the modernisation of Tax...

© 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


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)


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


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?


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)


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


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)


Prototypes of organisational culture (1)

Equal

Taskoriented

Personoriented

Hierarchy

Learning organisation

Pyramidal organisation

Result drivenorganisation

Family orientedorganisation



Equal

Taskoriented

Personoriented

Hierarchy

Scandinavia

USA

Germany

France

SouthernEurope

Latin America


Reaction in stress situation

Equal

Taskoriented

Personoriented

Hierarchy

Power abuse More rules

Dream on Targets and sanctions


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


Organisations in five parts (Mintzberg)

Operational Core

Middle management

Techno structure SupportStaff

Top management

United Kingdom

USA

France

Germany

Asia/ Middle East


Conclusion

A global language for tax administrations doesn’t

exists

© 2005 IBFD, Your Portal to Cross-Border Tax Expertise Trends in the modernisation of Tax...

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