Integrated tax systems

Creating a single view of the taxpayer

Stove-piped systems for income, sales and withholding taxes typically have their own unique data on taxpayers and their own unique functions for registration, accounting and reporting. This "silo" approach creates redundant and cumbersome processes for citizens and businesses, inconsistent customer service, and barriers to implementing new tax laws, especially when systems are running on outdated technology.

An integrated tax system (ITS) transforms disparate tax types into a single, cohesive system for all tax functions, including registration, returns processing, remittance processing, taxpayer accounting, revenue accounting, correspondence and reporting. ITS can also be extended to complement core tax processing.

To build the strongest business case, ITS modernization projects are often paired with auditing and tax collection systems, since ROI for core tax processing can be difficult to measure. These projects also tend to include business process reengineering (BPR) and organizational change management to maximize success. Increasingly, agencies are looking to benefits-funded financing for ITS projects.

CGI has significant experience and expertise in all of these areas. Our expert consultants, many of whom were government tax agency leaders in compliance, assist clients at all stages of ITS implementations, from evaluating cost-benefits of using legacy systems more effectively or deploying commercial off-the-shelf (COTS) systems, to identifying short and long term benefits of tax system transformations.

Based on several strategic consulting projects for tax and revenue agencies around the world, we have developed a proven approach to ITS initiatives that includes:

• Conceptual design of the business, technical and organizational architectures that will enable the taxpayer interactions and internal processes needed to achieve transformation
• BPR and organizational change plan to identify and define areas of focus, and provide a methodology for change
• Business case that supports the client's vision, including an analysis of funding alternatives
• Implementation plan that serves as a roadmap detailing the major tasks from procurement through implementation of strategic initiatives.

CGI's Integrated Tax System Blueprint