Ensuring Homes for All: An Equity Primer on Housing Elements
ENSURING FISCAL EQUITY: WEALTH...
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ENSURING FISCAL EQUITY: WEALTH INDICATORSInnovation – Increased cost effectiveness – Overall effectiveness
The Honourable Francine Martel-VaillancourtDeputy Minister of Revenue
2010 United Nations Public Service AwardsUnited Nations Public Service Day, Awards Ceremony and Forum in Barcelona, June 22, 2010
ENSURING FISCAL EQUITY: WEALTH INDICATORS
1 service outlet in Toronto13 cities in Québec
17 service outlets and 1 client services support centreNearly 10,500 employeesResponsible, in whole or in part, for the administration of 20 lawsCollects 85% of the Québec government’s own-source revenue
Nearly 6,000,000 taxpayers and 600,000 businesses
Revenu Québec at a Glance
ENSURING FISCAL EQUITY: WEALTH INDICATORS
Revenu Québec’s MissionMission
To collect income tax and consumption taxes
ObjectivesTo encourage self-assessment
To protect the tax base
MeasuresIntegrity of the tax systemFairness among taxpayers
DifficultyCountering tax evasion
Balance
The ultimate goal of the wealth indicators projectTo change taxpayers’ future conduct for the better
ENSURING FISCAL EQUITY: WEALTH INDICATORS
Auditor
Wealth indicators
Reported income
House
LandAutomobile
InvestmentsBoat – Aircraft
ImmovablesCost of living
Available income – Personal enrichment = (Difference)
Vision of the Project
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Innovative Audit Method
Because of the audit method developed as part of the project,
the number of audits conducted has been significantly increased (by approximately 4,000 a year);
auditors are provided with a rigorous, greatly simplified process for combatting tax evasion;
audits can be conducted at our offices rather than at a taxpayer’s place of business;
ENSURING FISCAL EQUITY: WEALTH INDICATORS
Innovative Audit Method (continued)
communication between Revenu Québec and its clientele has been simplified, in particular, by the production of files that are more comprehensive and more easily understood by taxpayers;
the time required to complete an audit has been reduced from 200 to 21 hours; and
the cost of an audit has been reduced from $8,500 to $900.
ENSURING FISCAL EQUITY: WEALTH INDICATORS
Cumulative additional revenue
0
50
100
150
200
250
300
2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Mill
ions
of d
olla
rs
2003-2009: $220 million
Projection for 2003 to 2011: $260 million
Significant Additional Revenue
ENSURING FISCAL EQUITY: WEALTH INDICATORS
Net benefit of the wealth indicators project
Additional revenue $220 million
MinusCost of carrying out the project $5 million(investment recouped after only 2 months of operation)
Operating cost over 7 years $32 million(auditors’ salaries and other costs)
Net benefit $183 millionNet benefit of $183 million from 2003
to 2009 redistributed by the government in the form of services
provided to the population
Tangible Results
ENSURING FISCAL EQUITY: WEALTH INDICATORS
Stakeholders
Québec government
Ministère des Finances
Commission d’accès à l’information
Government departments, public bodies and the private sector
Population of Québec (for the purposes of gaining their support and maintaining their confidence)
ENSURING FISCAL EQUITY: WEALTH INDICATORS
Formidable Challenges
To realize this project, Revenu Québec had to
have the Act respecting the Ministère du Revenu amended;
obtain the consent of the Commission d’accès à l’information for the use of external information;
check the accuracy of the results obtained through data linkage so that they can be filed as evidence before the courts, where relevant;
conclude a large number of memoranda of understanding with the partners of Revenu Québec to obtain information from them; and
develop a highly complex technology.
ENSURING FISCAL EQUITY: WEALTH INDICATORS
Innovative Expert System
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Future Outlook
Based on respect, transparency and thoroughness, this project foridentifying tax evasion (the only one of its kind in the world)
has paved the way for technologies that revolutionize the tax audit methods of governments;
is inspiring a number of countries to implement such technology in their government administration; and
has unquestionably set Revenu Québec apart as a worldwide leader in combatting tax evasion.
Australia France
British Columbia OntarioGovernment of Canada
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Lessons Learned
This project has demonstrated the importance of
the commitment of the government and its various departments;
the support of the population;
respecting privacy;
a clear vision and a structured approach;
investing in new technologies; and
reviewing how things are done.
ENSURING FISCAL EQUITY: WEALTH INDICATORS
2010 United Nations Public Service Award in the category of Improving the delivery of services – Europe and North America
Gold Winner in the Innovative Management category, Institute of Public Administration of Canada
Prix d’excellence in the public service category, Institut d’administration publique de Québec
OCTAS de l’Excellence, Fédération de l’informatique du Québec
OCTAS in the "technological innovation (1,000 employees or more)" category, Fédération de l’informatique du Québec
Distinctions and Awards
ENSURING FISCAL EQUITY: WEALTH INDICATORS
Thank you for your attention.
Congratulations to all the winners!