ENSURING FISCAL EQUITY: WEALTH INDICATORSunpan1.un.org/intradoc/groups/public/documents/un-dpadm/...ENSURING FISCAL EQUITY: WEALTH INDICATORS Revenu Québec’s Mission Mission To

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


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


Auditor

Wealth indicators

Reported income

House

LandAutomobile

InvestmentsBoat – Aircraft

ImmovablesCost of living

Available income – Personal enrichment = (Difference)

Vision of the Project


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;


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.


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


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


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)


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.


Innovative Expert System


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


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.


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


Thank you for your attention.

Congratulations to all the winners!

ENSURING FISCAL EQUITY: WEALTH INDICATORSunpan1.un.org/intradoc/groups/public/documents/un-dpadm/...ENSURING FISCAL EQUITY: WEALTH INDICATORS Revenu Québec’s Mission Mission To

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