Concept of digital transformation of the State Tax Service of Ukraine, modernization of the IT infrastructure and key areas of further cooperation were discussed during the meeting between acting Head of the State Tax Service of Ukraine Lesya Karnaukh and representatives of the World Bank, led by the Regional Practice Director for Europe and Central Asia Abebe Adugna.
This is Abebe Adugna’s first meeting in Ukraine in this position, so the parties had a detailed discussion on key cooperation areas.
“It is extremely important for the State Tax Service to build digital Tax Service in partnership with the World Bank. Such cooperation allows us to take into account the best global practices and receive expert support in implementing complex systemic changes. We are currently completing work on the draft Concept of digital transformation by 2030. This is a roadmap for transforming the State Tax Service into modern technological, service-oriented and data-driven tax administration” – noted acting Head of the State Tax Service.
Parties, during the meeting, discussed architecture of digital transformation of the State Tax Service, which includes 6 dimensions:
- Digital by Design: digital technologies are not auxiliary tool, but the basis for designing processes, services and organizational models.
- Data-Driven: unification of approaches to data exchange, development of analytical tools to support decision-making.
- Government as Platform: integration with digital government platforms and registries, integration with the EU systems.
- Open by Default: development of analytical dashboards, ensuring access to open data.
- User-Driven: user-payer oriented modernization of the Electronic cabinet, development of digital interaction channels.
- Proactiveness: Tax Service should become “invisible” through automation and seamless reporting and pre-filling processes, as well as proactive auto-notifications for the taxpayers.
Also, among the priorities is implementation of the Automated tax risk management system. This is key element of the transition to data-based tax compliance management. During development of the system, the State Tax Service takes into account recommendations of the World Bank provided during the previous mission.
Introduction of such risk-based system will contribute to increasing efficiency of tax control and reducing administrative burden on business.
Important basis for changes is the request from business. Parties also talked about the Global Taxpayer Survey, which is currently ongoing in Ukraine with support of the World Bank.
“Our goal is to learn experience of entrepreneurs interacting with the Tax Service. This will help supplement our transformation with practical steps that will simplify paying taxes” – Lesya Karnaukh added.
Results of the Global Survey will be integrated into the digital transformation project of the State Tax Service and taken into account in the process of forming the Service’s new business model.