revenue authority

Managing Revenue at the Palestinian Authority, 2002 - 2004

Author
Tristan Dreisbach
Country of Reform
Background
Abstract

“Could the Palestinian Authority survive?” That was the question on many Palestinians’ minds when Salam Fayyad became finance minister in June 2002 and the cash-strapped government was struggling to pay its civil servants and suppliers. To avert a collapse, Fayyad quickly took steps to increase government revenue. He developed a system that would direct into a single, centralized treasury account all taxes, fees, and other income collected by government offices. He created a fund that consolidated the Palestinian Authority’s tangled and largely opaque commercial and investment assets and contracted with an outside firm to conduct a full audit of those holdings. He also took action to reduce smuggling and assert control over the tobacco authority and petroleum commission—two autonomous PA agencies plagued with management problems. The reforms required Fayyad to navigate political resistance and an entrenched administrative culture wary of financial transparency. Fayyad’s achievements enhanced efficiency, helped restart the flow of tax revenues withheld by Israel, and enabled the PA to attract external support and investment, quashing—at least temporarily—an existential financial crisis.

Tristan Dreisbach drafted this case study based on a series of interviews conducted with Salam Fayyad in Princeton, New Jersey, in 2019. The study also incorporates other interviews conducted in the Palestinian cities of Ramallah, Nablus, and Jericho in June and July 2019. The case is part of a series on state building in Palestine, 2002–05 and 2007–11. Case published March 2022.

Joel Ntihemuka

Ref Batch
C
Focus Area(s)
Ref Batch Number
12
Country of Reform
Interviewers
Leon Schreiber
Name
Joel Ntihemuka
Interviewee's Position
Deputy Commissioner for Information Technology,
Interviewee's Organization
Rwanda Revenue Authority
Language
English
Town/City
Kigali
Country
Date of Interview
Reform Profile
No
Abstract

In this interview, Joel Ntihemuka talks about moving the paper-based operations of the Rwanda Revenue Authority (RRA) online. He discusses the challenges of starting this process from scratch, without infrastructure or skilled personnel. Ntihemuka talks about having several stand-alone IT systems for internal functions and different types of taxes, as well as the process of buying software from foreign vendors and customizing it to Rwandan needs. He shares his view on the RRA as providing a public service and emphasizes the importance of high quality service delivery. Ntihemuka discusses the RRA’s attempts to use technology to make filing taxes convenient for Rwandan citizens. This was the motivation behind introducing online and mobile tax declaration. He also talks about the process by which the RRA set up online and mobile tax declaration and stresses the importance of having tax personnel take charge of these projects as they are better aware specific requirements than IT personnel. Ntihemuka emphasizes the benefits of having support from government leaders in terms of investing in infrastructure and bringing partners together. Lastly, Ntihemuka discusses his future vision for the RRA as working in tandem with the government to have a fully digitized and integrated system that provides a single view of a tax payer across various tax departments. 

Profile

At the time of this interview, Joel Ntihemuka was the Deputy Commissioner for Information Technology at the Rwanda Revenue Authority (RRA), a government revenue collection agency. He joined the RRA as a network engineer in 2002.  

 

Richard Tusabe

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C
Focus Area(s)
Ref Batch Number
9
Country of Reform
Interviewers
Leon Schreiber
Name
Richard Tusabe
Interviewee's Position
Commissioner General
Interviewee's Organization
Rwanda Revenue Authority
Language
English
Town/City
Kigali
Country
Date of Interview
Reform Profile
No
Abstract

In this interview, Richard Tusabe talks about the early challenges that the Rwanda Revenue Authority (RRA) faced in terms of capacity building and reinvigorating the economy after the Rwandan genocide. He discusses the RRA’s methods to find skilled people outside the country for assistance, including engaging international partners and joining the East African Community to collaborate with other countries. Tusabe talks about the benefits of the RRA remaining outside the mainstream of public service as this allows the institution more flexibility compared to a bureaucracy. He emphasizes the importance of the RRA’s autonomy and zero-tolerance policy for corruption as well as the larger government’s endorsement of technology as an enabler. Tusabe also stresses the need to reduce the costs of filing tax to encourage people to leave the informal sector. He sheds light on the RRA’s methods of redeploying human resources after moving to an online system to better suit the institution’s needs. Tusabe talks about some of the remaining challenges of the RRA as losing staff to the private sector, and having a large informal sector, despite the government’s encouragement to move away from a cash economy. He describes the path forward for the RRA as using big data and analytics to monitor compliance, in line with the broader national shift towards having more mobile phone and internet penetration.  

Profile

At the time of this interview, Richard Tusabe was the Commissioner General for Rwanda Revenue Authority (RRA), a government revenue collection agency. He has also served as the RRA’s Deputy Commissioner General, and Commissioner of Customs at the. Before joining the RRA, Tusabe worked in the private sector, specifically as the chief financial officer of a telecommunications company. He is an accountant by profession. 

Full Audio File Size
42 MB
Full Audio Title
Richard Tusabe Interview

Aimable Kayigi Habiyambere

Ref Batch
C
Focus Area(s)
Ref Batch Number
4
Country of Reform
Interviewers
Leon Schreiber
Name
Aimable Kayigi Habiyambere
Interviewee's Position
Commissioner for Domestic Taxes
Interviewee's Organization
Rawanda Revenue Authority
Language
English
Town/City
Kigali
Country
Date of Interview
Reform Profile
No
Abstract

In this interview Aimable Kayigi Habiyambere talks about the creation of the Rwanda Revenue Authority (RRA) as the tax collection agency of the government. He discusses the structure of the RRA, specifically that the agency is accountable to a board of directors that represents both the private sector and various ministries of the government. Kayigi Habiyambere talks about the RRA’s internal audit department, that reports directly to the board as opposed to the leading Commissioner of the RRA. He discusses a dedicated staff training institute for the RRA and various programs including an anti-corruption strategy and a whistleblower policy. Kayigi Habiyambere also talks about restructuring the RRA to have departments that were divided by the nature of the taxpayer rather than the nature of the tax. This made is easier to solve tax compliance issues by having a single file for each taxpayer. He shares his experience during the transition from filing paper returns to filing returns online and via mobile phone for those with limited internet access. Kayigi Habiyambere stresses the importance of targets for the tax collection agency as motivation to perform. 

Profile

At the time of this interview, Aimable Kayigi Habiyambere was the Commissioner of Domestic Taxes in Rwanda Revenue Authority (RRA), a government revenue collection agency. He joined the RRA in 2000 and has previously served as the Deputy Commissioner in charge of Large Taxpayers. Kayigi Habiyambere graduated from Kigali Independent University. 

Full Audio File Size
47MB

Reworking the Revenue Service: Tax Collection in South Africa, 1999-2009

Author
David Hausman
Focus Area(s)
Country of Reform
Abstract

Between 1998 and 2009, the South African Revenue Service dramatically improved tax compliance.  The number of income-tax payers increased to 4.1 million from 2.6 million during the period.  Several internal organizational changes helped the revenue service persuade more South Africans to pay their taxes.  This case study tells the story of two of those changes in particular: the recruitment of a new cadre of managers from both within and outside the organization and a campaign to provide taxpayers with better service to encourage compliance.  The organization used diagnostic tests as well as informal recruiting to rebuild the ranks of upper and middle management, transforming the racial make-up of the organization while improving performance.  Meanwhile, in order to improve service for taxpayers, a team of managers and consultants separated back and front offices and introduced an annual "filing season" in which employees of the revenue service left their offices to help taxpayers file their returns.  In each of these changes, Pravin Gordhan, revenue-service commissioner from 1999 to 2009, played a central role, both determining policy and overseeing the details of implementation.

David Hausman drafted this case study based on interviews conducted in Pretoria, South Africa in February 2010. Case originally published 2010. Additional text added in December 2013. 

Associated Interview(s):  Pravin Gordhan, Judy Parfitt

Professionalization, Decentralization and a One-Stop Shop: Tax-Collection Reform in Ghana, 1986-2008

Author
David Hausman
Focus Area(s)
Country of Reform
Abstract
Between 1986 and 2008, direct tax revenue collected by Ghana’s Internal Revenue Service nearly doubled as a proportion of the country’s gross domestic product. This case study offers an account of organizational change within the IRS during that period. When the agency became autonomous from the rest of the Ghanaian civil service in 1986, its leaders recruited a large number of accountants and lawyers, raised salaries by 50%-100% and instituted a collective bonus system tied to annual revenue targets. In order to make taxes easier to pay, they delegated functions, people and equipment to local branch offices, monitoring those offices through monthly revenue reports and regular internal audits. Finally, the agency focused attention on customer service for the largest taxpayers by founding a Large Taxpayers Office. That office formed the basis for a cross-agency one-stop shop, the Large Taxpayers Unit, which allowed the 360 firms and individuals that accounted for 50%-60% of the country’s revenue to pay customs taxes, value-added taxes and income taxes in one place.
 
David Hausman wrote this case study on the basis of interviews conducted in Accra, Ghana, in January 2010.  Case published July 2011.