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IT Applications Provide Electronic Tax Services and Contribute to Building "Electronic Government"


1,000. Tax authorities need to analyze 200,000,000 indicators and need to analyze information from many aspects, such as profit margin analysis, debt analysis, etc. This is a huge amount of work and is not feasible if done manually. Applying IT is a chosen solution to contribute to the implementation of the task, while creating conditions for streamlining the payroll.


On the basis of IT application, the linked tasks according to the management function model are established and have conditions for implementation, from which the tax collection management organization structure of the tax industry is built according to the functional principle, each different department will perform different functions in the tax collection management process, minimizing the direct relationship between individual tax officers and taxpayers.


For the monitoring of tax compliance, the application of IT in tax administrative reform is an urgent requirement today to promote the public and transparent implementation of tax activities. With IT applications, the information system becomes transparent to everyone. Tax officers are well supported in their daily work, manual work is reduced, tax officers will have more time for management and direction activities in the direction of supporting taxpayers, and at the same time have the ability to control the voluntary compliance with tax obligations of taxpayers. All tax policies will be public and transparent, helping tax officers to perform their duties in all conditions of work position and area of ​​operation, then the rotation of officers will be truly meaningful and have the opportunity to apply properly. The mechanism of providing complete, accurate and timely information also helps to limit the acts of concealing and distorting tax management information, thereby creating a strict legal environment for tax officials and taxpayers. The tax industry's IT application system provides complete and accurate information.


This will contribute to promoting taxpayers to properly fulfill their obligations, creating a development environment and healthy competition under the regulatory impact of taxes.

1.4.2. Applying IT to provide electronic tax services and contributing to building "e-Government "

In the reform and modernization of the tax sector, the goal is always to promote voluntary compliance with tax regulations by taxpayers. To achieve this, the tax sector plans to use mass media, education systems, tax authorities and deploy various forms of propaganda and education to fully understand tax policies and legal responsibilities to raise awareness and strictly comply with the obligation to pay taxes to the State budget according to the provisions of law.


The tax sector needs to organize timely and complete guidance on procedures for tax declaration, tax calculation, tax exemption and reduction records, tax settlement and tax payment so that taxpayers can fulfill their tax obligations well while still minimizing errors caused by lack of understanding. Thus, the tax information and service system must be complete and convenient for taxpayers, the system of policies, procedures and tax forms must be simple, easy to understand and unambiguous so that taxpayers have the ability to self-calculate and self-declare their taxes accurately and completely. To meet this requirement, the tax sector applies IT to improve the quality of service provision to support taxpayers through the tax legal document database system, the tax Q&A database system and provide it directly on the Vietnam Tax website on the Internet. In particular, in the context of many changes in the policy system and tax regime to meet the development of the economy, the requirement to supplement and modify information organized in the form of databases must be updated promptly and completely.


Nowadays, along with the development of the economy, the need to exploit and use information via the Internet has become a need of many organizations and individuals. From the perspective of taxpayers, the need to be provided with public tax services in a complete, timely and convenient manner has become inevitable. Returning to the reality of the economy developing in the direction of global integration, taxpayers are no longer limited to the national territory, but have appeared worldwide. Taxpayers are not only Vietnamese citizens but can also be people of other nationalities. These issues have created a driving force for electronic transactions to form and develop, thereby promoting the development of IT application activities in the state management agency system.


For the Vietnamese tax sector, the application of IT aims to meet the requirements of automatic processing of internal tax activities, while improving the quality of public tax service provision activities via the Internet. With current science and technology, in addition to continuing to provide information on policies and regimes, guiding procedures and reference information on the operating status of taxpayers, the tax sector will move towards providing electronic services such as question-and-answer exchange; online tax registration (e-register); online declaration (e-Filling); online tax payment (e-Payment).


User authentication solutions using Public Key Interface, Digital Certificates and Personal ID, Password. Requiring the use of information for the right purpose, sharing necessary information to those in need in a timely and accurate manner - will contribute to the formation of an information society. Through the above electronic transactions, a modern form of communication between taxpayers and tax officials will be formed based on IT application services. In addition, tax authorities will manage and control the needs of taxpayers.


Taxpayers, thereby having policies and measures to fully meet the increasingly diverse and complex needs of taxpayers.


Regarding the content of building and deploying the electronic tax service system (e-Tax services), the tax sector implements the development roadmap of electronic public services in the tax sector, expanding online declaration, building an electronic information portal, upgrading the website to better publicize tax policies, regimes, and administrative procedures, perfecting the free tax declaration support software for businesses and taxpayers, developing and expanding the socialization of online tax declaration services,....


In 2010, within the framework of the cooperation agreement between the General Department of Taxation and the Vietnam Chamber of Commerce and Industry (VCCI), the researcher participated in a survey on the ability and demand for using IT applications of enterprises, especially the demand for electronic tax services (survey form in Appendix 06). The scale of the survey was determined to be conducted on a sample with a list of about 10,000 enterprises nationwide with different capital sources and popular business lines in different economic sectors. The survey aimed to determine the following basic information:

Table 1.5: Electronic tax transaction needs of enterprises


The need for electronic tax transactions between businesses and tax authorities

Unknown

Unnecessary

Necessary

Very necessary

Enterprises need electronic tax declaration





Enterprises need to pay taxes electronically





Enterprises in need of electronic tax refund





Enterprises need to use electronic invoices





Enterprises need to look up information about value added tax invoices (determine validity)





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IT Applications Provide Electronic Tax Services and Contribute to Building "Electronic Government"


The need for electronic tax transactions between businesses and tax authorities

Unknown

Unnecessary

Necessary

Very necessary

Enterprises need to exchange via the Internet





Businesses need to use text messages





Source: Documents preparing for the survey on the demand for using electronic tax services (2010)


The survey results will determine the need for electronic tax transactions of Vietnamese enterprises and, when completed, will have research and analysis value for policy makers to use in the future.


Regarding the demand for electronic tax services, in the coming period, there will be an explosion of services that bring more convenience than before, especially services on electronic tax declaration and payment, electronic tax refund, mobile phone messaging and especially electronic invoice provision services.

1.4.3. Applying IT to meet the requirements of data exchange and connection within and outside the tax sector


The need for connection and data exchange between the tax sector and related sectors such as treasury, customs, banking, statistics, planning - investment, etc. has been mentioned above when talking about the activities of tax authorities. These data exchange needs are described in the form of business problems of the parties involved. In reality, the important issue is not technology or business but the standards so that different systems can "connect" with each other and follow pre-determined coordination principles.


For tax authorities, IT applications to exchange data with related sectors not only aim to improve the efficiency of tax management, enhance the management effectiveness of state agencies and effectively support different application systems of the sectors.


Information includes internal and external information exchange. Some problems of this type have high priority such as information exchange with treasury and customs agencies. For data sources from commercial banks, there is currently no legal framework for this work. However, this issue needs to be addressed by the Government to direct relevant parties to coordinate implementation. In the coming period, the Vietnamese tax sector will continue to complete and organize the implementation of regulations requiring information provision and information exchange mechanisms with ministries/sectors, local authorities, auditing companies and commercial banks via computer networks including: collecting, processing, storing, and providing information between tax agencies and the above agencies and units; Continue to complete and organize the implementation of information exchange mechanisms with tax agencies of other countries including receiving, exploiting, processing and providing information and regulations on ensuring confidentiality in information exchange about taxpayers.


In addition, the tax sector needs to carry out negotiation and exchange activities to strengthen cooperation with tax authorities of countries in the region and around the world to better manage cross-border trading activities subject to tax, prevent fraud that may occur from transactions of a "transfer pricing" nature and especially handle cross-border tax avoidance behaviors. In order to facilitate the implementation of the above international cooperation content, the tax sector considers strengthening training on international tax knowledge and has tax management measures similar to those of other countries in the world. In the coming time, the tax sector will also expand information exchange with tax sectors of related countries to manage income tax payment, transfer of profits abroad, verify tax declarations, etc. In the immediate future, the tax sector can propose a mechanism for information exchange between members of the Association for Research and Management.


Study Group on Asian Tax Administration and Research Meeting (SGATAR).


1.5. International experience in applying IT in tax management


Based on the survey reports of working groups (internal documents of the tax sector) and information presented at a number of international tax conferences attended directly, the thesis synthesizes a number of typical cases of the electronic tax service provision model in Korea, the application of IT in tax inspection in China and the centralized tax data processing model at regional centers in Sweden.

1.5.1. IT application model to support taxpayers in Korea


The Korean tax industry began applying IT in tax management in 1966 with the initial task of researching IT applications and training IT for tax officials. In 1971, the National Tax Data Processing Center was established, after which data processing systems for each type of tax were gradually formed over time.


Previously, the Korean tax industry was assigned the top priority of collecting taxes to meet the national financial needs. Up to now, when the revenue source for the State budget has stabilized, the requirement to provide taxpayer support services has the highest priority in the operations of the Korean tax industry. Based on that point of view, in 1999, Korea changed the original name of the National Tax Administration to the new name of the National Tax Services. In the context of strong development in IT, since the early years of the 21st century, the Korean tax industry has applied new technological achievements to make fundamental changes in tax administration. This is demonstrated by


This is evidenced by the e-Tax services that have been implemented in Korea in recent years, including e-Filing, e-Payment, and e- Notices7 .

The most important thing for providing services to taxpayers is to understand the needs of taxpayers for tax authorities. After understanding the issues that taxpayers are concerned about, the tax sector will adjust tax policies and regimes and implement them with the effective support of IT and communications.


One of the challenges for tax administration is meeting the needs of taxpayers and how this affects their tax compliance. In order to best understand taxpayers’ concerns and needs, the National Tax Service of Korea has established a business dialogue forum on its “website” to receive suggestions and requests related to tax policies and regulations.


Nowadays, the use of Internet services in Korea is increasing rapidly, for example, in 1997 there were 1.6 million people, and by 2001 it had increased to 24 million people [43, p.18]. Korean people use the Internet every day for services such as email, searching for information, knowledge and entertainment. State agencies all have their own websites. For the Korean National Tax Service, providing tax services via the Internet is an effective solution to provide information on the implementation of taxpayers' obligations and to promptly access and grasp the needs, wishes as well as difficulties and problems in the tax field of taxpayers. With effective support



7 Report of the working group visiting and surveying the General Department of Taxation of Korea (internal document of the General Department of Taxation)

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