On 5-7 September 2023, the Network of Tax Organisations (NTO) Council and its nine member organisations, including IOTA, in collaboration with the African Tax Administration Forum (ATAF) successfully held the 2nd NTO Technical Conference in Cape Town, South Africa. The hybrid event ran under the main theme of "Digitalisation of Tax Administrations and Contemporary Issues" and was joined by over 150 participants in-person and over 200 virtually including the heads and representatives of 10 regional tax organisations along with the Study Group on Asia-Pacific Tax Administration and Research (SGATAR) as the newest member of the NTO.
Hosted by the African Tax Administration Forum (ATAF), this year’s conference discussed the digital transformation of tax administrations, tax compliance, and enforcement technology, in addition to focusing on emerging technologies and their potential impact on revenue administrations. Key highlights of the conference were the country case studies, empirical research on the impact of digitalisation on tax administration, and the lessons can draw from these both collectively and individually. The Cape Town conference was opened by the Head of the NTO Council and Executive Secretary of the African Tax Administration Forum (ATAF), Mr. Logan Wort, and received inputs from the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. IOTA also had the pleasure of contributing to the technical program of the conference by offering presentations from its member tax administrations during the plenary and breakout sessions.
On the first day of the conference, the focus was on the digital transformation of tax administrations. Participants were provided with an overview of the tools to measure progress in the digitalisation journey towards seamless and frictionless tax administration, and the key elements of success. The presenters emphasized the importance of positive leadership and the centrality of people in tax administration. It was concluded that the digitalisation journey can be successful only through strategic clarity, a compelling vision, and a shared purpose.
The second day of the conference set the floor for interventions from the IOTA member tax administrations as well. The main topic of this day revolved around Tax compliance and enforcement technology and highlighted the transformative role of technology in reshaping tax compliance, spotlighting the efficiency and empowerment brought about by e-filing and modern data collection methods.
At the ‘Plenary session 3: Empowering Taxpayers through Technology-Driven Services and Education’, Mr. Ferenc Vágujhelyi, President of IOTA and Commissioner of the National Tax and Customs Administration of Hungary took the floor for a presentation. The objective of this session was to explore the potential of technology-driven services in enhancing tax compliance and reducing compliance costs. The focus was on how technology can be leveraged to improve the efficiency and effectiveness of tax compliance, including the use of data analytics, e-filing, and e-payment systems. During this session, conference participants also examined the challenges faced by tax administrators the preparedness of taxpayers in implementing technology-driven services, and the strategies for overcoming these challenges. In his speech, Mr. Vágujhelyi reflected on these matters and highlighted the initiatives and projects related to the following topics:
- Empowering the taxpayer: changing paradigm;
- Electronic tax return system;
- Digital identification of taxpayers;
- How to help taxpayers to maintain business data integrity;
- Event-based Reporting Platform;
- Hungarian innovation: paying vehicle tax via app;
- Providing tax information in a ready-to-understand format to taxpayers.
At the panel discussion, another IOTA member tax administration, the Italian Revenue Agency, was represented by Ms. Francesca Vitale, Head of the International Department. Ms. Vitale shared the main challenges, such as re-skilling and diversifying competency profiles of employees, the Italian Revenue Agency faced in moving to a digital administration and utilising tools and technology for improving tax compliance. As for lessons learned from the digital transformation journey of the Italian Revenue Agency, Ms. Vitale pointed out the importance of drawing your own sufficiently broad (medium, long-term) vision, having a gradual approach to digital identity, digital policy, and digital investments, and allowing time and efforts to mature, remain consistent and gain broadest political and social support from the government, taxpayers and stakeholders.
This panel debate was joined by Mr. Aurice Akakpo, Deputy Director of IT, Directorate General of Taxation of Benin (DGI) along with Mr. Darlingston Y. Talery, Commissioner, Liberia Revenue Authority, and was moderated by Mr. Babatunde Oladapo, Executive Secretary, West African Tax Administration Forum (WATAF).
A significant milestone also unfolded on the second day as the Study Group on Asia-Pacific Tax Administration and Research (SGATAR) officially joined as the 10th member organisation of the Network of Tax Administrations. The signing ceremony marks a substantial step forward in NTO’s shared interest in enhancing the performance of tax administrations across the globe.
The third day of the conference also brought new engaging discussions and another IOTA member administration onto the stage. During the Breakout session 4: Cyber Risks and Threats Facing Tax Administrations Ms. Mariami Khutsisvili, Chief Operating Officer of the Information Security Team, Georgia Department of Revenue delivered a case study presentation. Ms. Mariami Khutsisvili presented information security policies, procedures, and guidelines adopted in the administration for handling cyber incidents as well as user education, awareness, and training (e.g., cybersecurity courses) of the employees as part of the institutional HR development plan. Furthermore, Ms. Khutsisvili gave a comprehensive overview of the technological infrastructure and tools successfully implemented for the detection and protection of the administration’s networks and devices from cyber-attacks.
The objective of this session was to raise awareness and educate participants on the current and evolving cyber risks and threats that tax administration systems, processes, and data face, including hacking, phishing, malware, and ransomware attacks. The session evaluated the importance of developing and implementing effective cybersecurity strategies to mitigate them. This session was moderated by Mr. Emeka Nwankwo, Manager, Domestic Taxes, ATAF.
During the closing ceremony of the 2nd NTO Conference, the NTO Council and the delegates emphasized the necessity for closer cooperation and knowledge-sharing between global tax authorities. The NTO was tasked with playing a more significant role in the digital transformation of tax administrations internationally.
The NTO is a network of 10 regional and international tax organisations including IOTA. It supports the capacity of NTO member organisations and their member tax administrations by fostering international collaboration and dialogue on tax issues for effective domestic resource mobilisation (DRM).
For further details on the event, please visit the official website of the 2nd NTO Conference.
