G4G Technical Deliverable: Support to Business Process Reengineering for Tax Payment Simplification Reform

The reform aims to replace the 164 separate treasury codes with a single treasury code, allowing the RS to collect and allocate taxpayers' payments according to the information they provide in their declarations. The reform requires the RS to modify its information system, which enables and supports automation of RS operations, to accommodate the new payment system. The objective of the Support to Business Process Reengineering for Tax Payment Simplification Reform consultancy was to provide RS with advisory support on business process reengineering to introduce the streamlined and functional tax payment system. The consultancy, undertaken between October 15, 2014, and February 15, 2015, was accomplished in close cooperation with the RS staff and Mr. Irakli Siradze, G4G Tax Consultant. The consultancy resulted in clear identification of needs for changes in the existing information system and formulation of key concepts, structures, and requirements for implementation of identified changes, finally summarized and described in the draft Functional Requirements (FR) document. The needs for changes to existing RS software were identified, discussed with RS representatives, and agreed upon. The decisions made and agreed during the consultancy include the necessity of new database structures for processing full taxpayer information, the establishment of a link between old and new structures to ensure consistent adjustment and reflection/recalculation of information, and the adoption of a new approach for keeping detailed and uniformly structured operational logs for all kinds of taxes. Additionally, the consultancy recommended the adoption of a multilevel uniform classification of revenues, compliant with MOF's reporting requirements, and the implementation of a simple approach for transfer of records between temporary and primary cards through keeping of the common transaction identification system. The approach to keep additional operational change log for the temporary taxpayer's structure was also adopted to keep transactions/changes during the tax liability recognition process without loss of uniformity of information. The consultancy also identified the need to reduce manual operations to its maximum feasible level and to utilize the currently partially adopted approach for unification of operations according to source of information. Some portion of existing modules, providing source (input) information for card processing, requires modifications, and clear steps for full automation/integration of all operations and elimination of manual operations will be adopted. The draft Functional Requirements (FR) document summarizes and describes the identified needs for changes in the existing information system and the key concepts, structures, and requirements for implementation of identified changes. The document outlines the content of the developed document and future maintenance issues, as well as identifies needs for future adjustments and clarification of described information.