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Perception of a Tax Administration by Taxpayers: Case Study on Burundi Revenue Office


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Vénant Ndimuruvugo, Burundi Revenue Office (OBR)

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Perception of a Tax Administration by Taxpayers: Case Study on Burundi Revenue Office

  1. 1. PERCEPTION OF A TAX ADMINISTRATION BY TAXPAYERS: CASE STUDY ON BURUNDI REVENUE OFFICE (OBR) Venant Ndimuruvugo, Research and Planing Officer Office Burundais des Recettes African Tax Administrations Research day Entebbe, Thusday 19th October 2017
  2. 2. Objectives  Measuring the level of taxpayers’ satisfaction ;  Elucidating the global perception of Burundi tax environment by taxpayers ;  Highlighting the taxpayers’ experience with OBR ;  Highlighting the quality of the relationship between taxpayers and the Tax Administration ;  Probing the perception of the legal environment by taxpayers ;  Collecting taxpayers’ wishings aiming the emprovement of the tax system. 19/10/2017 2 African Tax Administrations Research Day Entebbe, Uganda
  3. 3. Brief Summary of Technical aspects of the Study  A study based on questionnaire (survey);  Survey population : Taxpayers subject to various taxes who come to OBR frequently and or those who come occasionally for a service request;  Sample of 484 respondents chosen randomly by probability sampling method;  Sondage effectué à Bujumbura et à l’intérieur du pays (Muyinga, Gitega, Kayanza et Makamba conducted in Bujumbura (capital) and in 04 other provinces (Muyinga, Gitega, Kayanza et Makamba);  Questionnaire with 03 parts:  Appreciation of the reception systèm  Appreciation of the services offered by OBR  Perception of the overall tax environment in Burundi Calender : Survey conducted from march 29th to may 30th 2017. 19/10/2017 3 African Tax Administrations Research Day Entebbe, Uganda
  4. 4. The sample 19/10/2017 16.9% 15.9% 49.0% 18.2% Considering the turnover of respondents Large taxpayers (turnover >= 1 billion) Medium taxpayers (TO between 100 millions and 1 billion BIF) Small taxpayers (TO btn 24 and 100 millons BIF) Autres 16.90% 3.10% 43.80% 5.70% 30.50% Considering the bureau visited by the respondents Virago Service Immatrivulation des véhicules Immeuble Emmaüs Pathway Port de Bujumbura Autre  49% of the respondents are small taxpayers  17% Large taxpayers  16% medium taxpayers  18% others (who come occaionaly for a specific service request). The respondents visited :  EMMAUS Pathway : 43,8%  VIRAGO Complex : 16,9%  Port of Bujumbura : 5,7%  Vehicles Immatriculation Service : 3,1%  Other sites (indeed other Provinces and Palais des Arts) : 30,5%. 4 African Tax Administrations Research Day Entebbe, Uganda
  5. 5. 1. Appreciation of reception a. Existence of reception and orientation agents 19/10/2017  54% of respondents stated taht the oroientation and reception service exists.  90% of respondents agreed that visitors are received by their arrival order.  Only 31% of respondents have been received immediately. 5 African Tax Administrations Research Day Entebbe, Uganda
  6. 6. 1.b. Why do they wait before being received ? 19/10/2017 Q4 : Selon vous quelle était la raison de votre attente ? L'employé était en conversation au téléphone ou avec un/une collègue 2.60% Autres à préciser 3.40% L'employé était absent 3.40% Panne technique 5.70% La lenteur du personnel 10.60% File d'attente 74.30% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% Other motives (3,4%):  disorder ,  Lack of declaration forms,  OBR agent who is busy with other activities,  Insufficient agents  Absence of some documents in the taxpayer’s folder that makes the process be stopped. 6 African Tax Administrations Research Day Entebbe, Uganda
  7. 7. 2. Service appreciation by taxpayers 19/10/2017 7  59,1% of the respondents were satisfaied by the physical presentation of the bureaux and theirs equipments;  57,3% were satisfied by the will of OBR to solve their problems.  69,3% recognised that OBR employees respect the rendez-vous.  57,8% were satisfied by the speed of service.  72,4% found that OBR employees have sufficient technical knoledges African Tax Administrations Research Day Entebbe, Uganda
  8. 8. 2. Service appreciation by taxpayers (ctd) 19/10/2017 8  59,9 were satisfied that OBR agents reserve stay attached to listening their problems  78,4% were satisfied by service hours at OBR.  57,6% satisfied that the OBR offices are localized not far from their working places.  75,8% asserted that OBR works in respect of laws in force. African Tax Administrations Research Day Entebbe, Uganda
  9. 9. 4. Attitude of OBR employees towards taxpayers 19/10/2017  62,2% dof respondents asserted that they have never met an OBR employee with a bad behalf vs 37,8% who have already experienced that situation  Those who met bad intended employees confied that the employee : • Tried to ask for a counterpart of the service (corruption) • Was speaking more than listening the taxpayer’s problem ; • Was more concerned by his problems than those of the taxpayer • Was concerned by the problems of OBR than the taxpayer’s ones • Tried to impose his point of view instead of convincing the taxpayer • Seked to enter in the private life of the taxpayer • Seemed to be overflowed and under stress • Was source of anxiety instead of satisfaction for the taxpayer. 9 African Tax Administrations Research Day Entebbe, Uganda
  10. 10. 5.Corruption @ OBR 5.a. Existence of corruption @ OBR 19/10/2017 • 17,2% of the respondents consider that corruption exists @OBR • Among them, 18.2% have already corrupted an employee of OBR. • How do the employee to ask for corruption :  Setting distant appointments (« come back on Friday » = 5,000; 50,000; 500,000; 5,000,000; « come back in ten days »; etc.)  Seeming not to find the taxpayer’s file  Asking openly for bribes  Seeking for a rendez-vous with the taxpayer out of service hours  Helping the taxpayer to underestimate the amount to declare 10 Le graphique 178 montre que seulement 17,7% des répondants considèrent que la corruption existe à l’OBR et qu’elle est un problème majeur dans les activités de l’OBR contre 82,3% qui ont émis u African Tax Administrations Research Day Entebbe, Uganda
  11. 11. 5.b. Why corruption continue to be reported @OBR? According to the respondents, ….. 19/10/2017 Corruption exists @OBR because : - Corruption is part of everday life (34,9%) - Recruitments and advancements of OBR personnel has always been made without transparency (27,3%) - There are so many and complicated procedures @OBR (25,8%) - There is external interference @OBR (9,10%). - Salaries and wages are not motivating @OBR (3%) 11 • Which services are mostly corrupted? o Services in charge of reception of tax declarations o Customs, o Services in charge of tax audits o Service of vehicles registering African Tax Administrations Research Day Entebbe, Uganda
  12. 12. 6. Perception of the tax environment in Burundi 19/10/2017 12  83,6% of the respondents stated that taxes are not a illegal charge imposed by Government to citizens 16,4% think that taxes are a illegal charge  46,1% found that the legal environment is understandable when 44,3% consider that they are stable.  44,3% said the respondents stated that VAT rate is high  46,1% declared that rates are for customs taxes and royalties  80,1% answered that declaration dates are suitable and  81% consider that the number of taxes are convenient, African Tax Administrations Research Day Entebbe, Uganda
  13. 13. 6. Some of respondents’ wishes  Revising downwards tax rates,  Combatting fraud and smuggling in order to protect compliant taxpayers  To simplify procedures  Automating all services @OBR  Translating forms and laws in local language(Kirundi)  Decentralizating all services in provinces  Resolving technical problems (network, electric cuts ) on time  Installing orientation panels in the OBR bureaus  Consulting all stakeholders before undertake any tax reform  Improvement the archiving system in order to avoid loss of useful taxpayer’s information 19/10/2017 13 African Tax Administrations Research Day Entebbe, Uganda
  14. 14. Key Learning : conclusions  The study showed that the image of OBR towards taxpayers is relatively good depending on what aspect we consider.  il est nécessaire mener des actions visant à améliorer davantage l’image de l’OBR vis-à-vis de ses contribuables.  La corruption reste perceptible à l’OBR malgré les actions déjà entreprises pour éradiquer ce fléau.  Une bonne partie des contribuables sont conscients de la nécessité de s’acquitter des impôts et taxes mais il s’observe une méconnaissance des lois et procédures par les contribuables  Les contribuables considèrent que les taux des divers impôts, taxes et droits perçus par l’OBR sont élevés 19/10/2017 14 African Tax Administrations Research Day Entebbe, Uganda
  15. 15. Suggestions :  Renforcer l’effectif du personnel pendant les périodes de réception des déclarations ;  Prendre des mesures adéquates en vue d’améliorer la satisfaction des contribuables en matière de durée de traitement des dossiers, l’écoute des doléances des contribuables, etc. ;  Accélérer l’acquisition d’un bâtiment propre à l’OBR en vue de faciliter les contribuables ;  Organiser des formations et stages de perfectionnement à l’égard des employés ; 19/10/2017 15 African Tax Administrations Research Day Entebbe, Uganda
  16. 16. Suggestions :  Suivre et sanctionner exemplairement les employés qui se rendent coupables d’un accueil peu adéquat à l’égard des contribuables ;  Poursuivre la mise en application des mesures de prévention/éradication de la corruption ;  Renforcer la stratégie de communication envers les contribuables ;  Proposer au Gouvernement les mesures de politique fiscale visant à corriger les lacunes relevées en matière de loi et procédures fiscales ou douanière ;  Renforcer le centre de documentation / bibliothèque bien équipé ou, à défaut, souscrire un abonnement aux bibliothèques en ligne afin de faciliter la réalisation des études futures ; 19/10/2017 16 African Tax Administrations Research Day Entebbe, Uganda
  17. 17. Suggestions :  Prévoir des moyens logistiques suffisants pour la réalisation des études futures ;  Prévoir un espace adéquat pour les contribuables qui attendent d’être servis surtout au site du palais des Arts (ex Province de Bujumbura) ;  Prévoir des installations facilitant aux personnes handicapées physiquement d’atteindre les services de l’OBR situés en étage.  Réserver une place pour les dénonciations de corruption.  Continuer de former le personnel de l’OBR en matière d’éthique et déontologie  Prendre des mesures de surveillance qui s’imposent en vue de corriger les imperfections au service pouvant conduire à l’insatisfaction des contribuables. 19/10/2017 17 African Tax Administrations Research Day Entebbe, Uganda
  18. 18. Key Learning : conclusions  Althought taxpayers are received in respect of their arrival order, we found that that only 31% of taxpayers who came @OBR were served immediately (within 10 min after arrival)  Aspects such as hours of service, respect of laws, knowledges of OBR employée, respect of rendez-vous, listening of taxpayers, the appearence of bureaux and equipment, speed of service, localization of the bureaux and the follow-up reserved to the taxpayers’s complaints have been noted as satisfying the taxpayers’ preferences.  Otherwise, we noted that some OBR employees still displays an unconfortable behaviour towards taxpayers (38,8% of the respondents)  Also, corruption has been reported by respondents.  We found that taxpayers still have limited knowledges about the tax environment and need to be more informed.  The study showed that tax rates are considered as very high and need to be reajusted to the exonomic context. 19/10/2017 18 African Tax Administrations Research Day Entebbe, Uganda
  19. 19. Key Suggestions :  Improve service quality by OBR employees  Pursue the project of automation of the internal taxes collection (online declaration, electronic payments, electronic fiscal machines, …;  Pursue the reform of laws ;  Engage more taxpayers education programmes. 19/10/2017 19 African Tax Administrations Research Day Entebbe, Uganda
  20. 20. 19/10/2017 Mwebale Nnyo 20 African Tax Administrations Research Day Entebbe, Uganda