How does the Tax sector respond to the industrial revolution 4.0?

VCN - In the framework of the Financial Forum 2018 held on 26th September 2018, the subject of digital transformation in taxation  has provided information about the roadmap of information technology (IT) application in the Industrial Revolution 4.0.
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The seminar

Appropriate time

Speaking at the forum, Nguyen Dai Tri, Deputy Director General of Taxation, said that nowadays, in the context of strong development of the Industrial Revolution 4.0, it requires all sectors and all state agencies to move ahead with development as well. The Tax sector has been aware of this and is setting a great demand on the IT application in all management stages.

For the Tax sector, the reality shows that the scope of tax administration is increasing. At present, the number of active enterprises has increased by 1.5 times compared to those 5 years ago. Besides enterprises, other subjects such as business individuals are growing up.

Mr. Tri said that in the context of rapid increase in information under management, while the requirements for organizational structure, apparatus and human resource are being cut, if the Tax sector continues to apply the traditional management method, it will not ensure the efficiency. Therefore, it is necessary to apply the latest technology 4.0 into tax administration to ensure a large database and apply risk management.

"Obviously, to this date, it can not be said that the Tax sector has reached intellectual intelligence, but in recent years the sector has been continuously renovating with the deployment of e-tax. This is a good basis towards the digital movement," said Tri.

Mr. Tri said that to implement the digital transformation, the Tax sector will need many factors. The first is the need to change the perception of leaders and civil servants, the staff of the professional divisions. If we think that the revolution 4.0 and digital transformation are the task of IT staff, this is completely wrong. This is the task of the entire Tax sector, which needs participation of all the sector’s leaders and civil servants. The second is the change of thinking in the management method. The third is the change of operational process. And the last is the enhancement of IT applications.

"The Ministry of Finance issued Directive 02 / CT-BTC 2018 to improve the effectiveness of administrative reform in the financial sector. Accordingly, the General Department of Taxation also issued a specific action plan. So far, the entire sector has begun approaching to deploy the first tasks. There will be many tasks to be done in the coming time. Now is the most appropriate time to prepare the resources for step by step implementation of the digital transformation in taxation.

A specific roadmap

Sharing about the specific tasks that the Tax sector will undertake to implement the plan towards the Industrial Revolution 4.0, Mr. Pham Quang Toan, Director of Information Technology Department under the General Department of Taxation said that by the year 2030, the Tax sector will complete the e-government architecture under the orientation by the Government and the Ministry of Finance. They are: Developing tax administration capacity for enterprises 4.0; Improving the service quality to the people, measuring and evaluating the level of satisfaction of the people; Training tax officers to improve the capacity of applying IT in tax administration during the period of industrial revolution 4.0.

To do this end, Mr. Toan said that in the period 2018-2025, the Tax sector will build strategies and perfect mechanisms and policies on digital transformation (including a plan to 2030, a five-year plan, a 10-year plan) Along with that, the Tax sector will continue to build and develop electronic finance, establish a digital financial ecosystem based on e-government architecture and new technology application of the Industrial Revolution 4.0 in Taxation.

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In particular, he noted that the Tax sector will establishment an electronic working environment and connect with the Portal of the Financial sector; deploy infrastructure services and financial information security. Moreover, the Sector will disseminate to raise awareness and train on knowledge of the Industrial Revolution 4.0.

Roadmap for new technology application of the industrial revolution 4.0 in taxation

1. In the 2018-2022 period: Implementing the electronic invoicing system with code of tax agency on the advanced and modern platform.

2. In the 2018-2020 period: Implement artificial intelligence solutions to support tax administrative processes, professional procedures as well as support applications and systems for tax payers and tax officers:

- From the 2018-2019 period: applying virtual assistant technology (chatbot) to support tax officers when using the applications and systems.

- In the 2019-2020 period: applying virtual assistant technology (chatbot) to support taxpayers on tax administrative procedures.

3. In 2018-2020 period: Deploying the centralized tax database in the whole sector, orienting to analysis and processing of large data for revenue forecasting, tax risk management, anti-transfer pricing, inspection and examination on tax.

- In the 2018-2019 period: developing Data Warehouse of the tax sector.

- In the 2019-2020: Upgrading the Data Warehouse to provide reports on analysis and processing of large data for the tax administration.

- In the 2020-2022 period: Developing an application for revenue forecasting based on data gained from the Data Warehouse and tax revenue forecast model issued by the Tax sector.

- In the 2019-2020 period: Deploying the application of risk management to manage tax collection, inspection and examination.

- In the 2019-2020 period: Deploying an application for management of anti-transfer pricing.

By Thuy Linh/ Huyen Trang

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