NEW TECHNOLOGIES FOR CITIZENS AND TAX SYSTEM ELECTRONIC TAX RETURN FILING SYSTEM

1. NEW TECHNOLOGIES FOR CITIZENS AND TAX SYSTEMELECTRONIC TAX RETURN FILING SYSTEM GRUPPO TELECOM ITALIA - FINSIEL July, 2000

2. THE PARTIES INVOLVED IN THE ELECTRONIC FILING SYSTEM TAX SOCIAL SECURITY BANKS POST OFFICE INDIVIDUALS COMPANIES TAX RETURNS VAT, Social security TAX PREPARERS TAX RETURNS Tax data base BIG COMPANIES TAX ASSISTANCE BUREAUS & TRADE ASSOCIATIONS TAXPAYER Social security data base Work insurance data base PAYMENTS Payment proxy Regional data base BANKS AND POST OFFICES • NEW WAYS OF PAYMENT • (credit cards, checks, self-service desks, • home banking)

3. MAIN RESULTS ACHIEVED THROUGH THE ELECTRONIC FILING SYSTEM (to date) • 31,701,862 tax returns transmitted ( 2,016,786 files) • unified payments • since May 1998: • 33,668 billion Lire (credits/debits) (17,000 million USD) • 22,126 in 1999 • 6,894 in 2000 • 1,124,540 billion Lire (payments received) (550,000 million USD) 599,068 in 1999 • 174,807 in 2000 • the Administration’s clearing system distibutes in 7 days the amounts due to the different tax levying bodies and gives them all relevant information about taxes collected • 74,585 users authorized to access the electronic tax filing system

4. OPERATING INFRASTRUCTURE • SECURITY • registration and certification authority • front-end access control systems • CALL CENTER • WEB SITE • PAYMENT SYSTEM

5. COMMUNICATIONS TO TAXPAYERS • This is an important step towards building new relationship between taxpayers and the tax administration based on openess and quality services • Communications are sent to the taxpayers before the next tax return deadline: • to inform the Taxpayer that his/her calculations are correct in the case of regular payment • to inform the Taxpayer about any errors made in the case of irregular payment • 16 million communications are sent annually, 80% of which regard regular tax returns

6. MAIN DEVELOPMENTS FOR THE YEAR 2000 • Tax returns sent via internet by Taxpayers • Rent contracts and property purchase deeds sent on line • On line services for citizens, tax preparers and other intermediaries

7. ON LINE SERVICES FOR LAND REGISTRY Goals of the new system • to create a single data base containing information about the following: • property ownership, property sharing and deeds • estimated value of property • identification and description • vectorial and raster cartography • to match the “raster” maps of the Administration with the numerical data produced by land surveyors by means of PREGEO • to provide services to land surveyors and other local bodies • to give a full service to the tax offices (monitoring + updating)

8. DATA BASE OF THE ECONOMY INTEGRATED CHECK STUDIES - RESEARCH TAX SYSTEM • OFFICES • REVENUE • SOCIAL SECURITY • WORK INSURANCE • FINANCE POLICE • CUSTOMS • REGIONAL BODIES • RESEARCH CENTRES • TRADE ASSOCIATIONS • INSITUTIONAL BODIES DATA BASE OF THE ECONOMY OTHER SYSTEMS ECONOMIC PLANNING WELFARE SYSTEM BACK UP SERVICES NATIONAL ECONOMIC SYSTEM

9. ELECTRONIC TAX RETURN • a means to building up a good working relationship between Taxpayers and the Administration • a solution that will: • speed up data exchange among the Administration, taxpayers and companies • provide high quality services to citizens • create an information hub which is designed to serve users and not procedures

10. NEW ORGANISATION OF THE MINISTRY OF FINANCE AND THE TAX SYSTEM Ministry of Finance NEW MINISTRY Finance Police AGENCIES STATE PROPERTY TERRITORY CUSTOMS REVENUE REGIONS TAXPAYERS INTERMEDIARIES COUNTIES TAX PREPARERS BAMKS COMPANIES POST OFFICES MUNICIPALITIES TAX COLLECTORS TAX ASSISTANCE BUREAUS TRADE ASSOCIATIONS CITIZENS SOCIAL SECURITY WORK INSURANCE Tax system

11. THE TAX ADMINISTRATION ON-LINE The network serves as a platform which creates • an information channel for taxpayers better and faster assistance and services • an internal communication system for the new Administration increased cooperation among workers, knowledge and experience sharing • the internal functioning of the agencies a new way of working in a more flexible work environment

12. … the tax administration on-line Electronic tax filing system is designed to be progressively upgraded It is a reference point for other parties involved in the tax system that want to link up with their clients through the net

13. THE TAX ADMINISTRATION ON-LINE 2002 THE PATH ALL OPERATIONS BETWEEN TAXPAYERS AND TAX AND SOCIAL SECURITY ADMINISTRATIONS (Central Tax Administration, regions, Councils, Social Security and Work Insurance Institutes…) 2001 TAX RETURNS CUSTOMS DECLARATIONS CADASTRAL CERTIFICATES TAX AND SOCIAL SECURITY ASSISTANCE 2000 TAX RETURNS AND PAYMENTS SENT FROM HOME VIA INTERNET 100,000,000 OPERATIONS FOR ON-LINE SERVICES 1999 TAX RETURNS AND PAYMENTS 50,000,000 OPERATIONS 1998 UNIFIED PAYMENTS 20,000,000 TAXPAYERS 65,000 OPERATORS BANK SYSTEM

14. …working infrastructure … SECURITY • Taxpayer registration and identification • Integrity of data exchanged • each party has a couple of asimmetric keys • the file that is forwarded is “signed” by the user’s private key with the sender’s code (electronic signature) • Privacy (all data are crypted before transmission by the Administration’s public key and can only be decripted by the Administration’s private key)

15. …working infrastructure … CALL CENTER The Adminsitration has a Help desk centre to provide assistance to authorised taxpayers about any problems relating to the use of the electronic filing system More than 300,000 calls received in the first three months after start-up New call centres have just been set up to provide assistance for tax returns via internet

16. ...working infrastructure …WEB SITE • General information • tax laws • information about how to use the electronic filing system • Tax forms • Technical requirements for electronic transmissions • Configuration and installation procedures • Precheck Software Kit • FAQs

17. … working infrastructureWAYS OF PAYMENT Present day: Payments can be carried out at Banks, Post Offices and through authorised tax collectors Future developments: • Direct authorisation through bank account (the taxpayer authorises his/her bank to withdraw any tax due from his/her bank account) • Credit cards • payments for the unified tax return • payments due after automatic tax return control • Internet the taxpayer authorises the Administration through the use of a code to withdraw from his/her bank account the tax due

18. … main developments in the year 2000 ...TAX RETURNS VIA INTERNET Goal:to enable citizens to send their tax return and payment authorisation via internet to the Ministry of Finance without the help of any intermediaries: • unified tax form, • request form authorising the direct withdrawal of tax payments due through the taxpayer’s Bank account The benefits for citizens and the Administration include: • reduction of errors in tax returns and payments • data are sent quickly

19. … main developments in the year 2000 ... • ON LINE SERVICES FOR CITIZENS, TAX PREPARERS AND OTHER INTERMEDIARIES • VAT number and personal data • registration of new business activity • changes or closure of business activity • changes in personal data • Inquiries through the central data base • information about your personal tax return and payments • tax litigation data • certificate for newly requested VAT number