M. S. Lal, Director General, MRA 16 th August 2006

1. TWENTY SEVENTH ANNUAL CATA CONFERENCE WORKSHOP 2006 SPECIAL HOST COUNTRY PRESENTATION ON Mauritius Revenue Authority M. S. Lal, Director General, MRA 16th August 2006

2. Contents • MRA – Legal, Governance Framework • MRA Revenues • Institutional Framework: Benefits • HR Framework • Information System • MRA Office Premises • Milestones

3. MRA – Legal Framework • A body corporate, a Revenue Authority established for the purpose of • Managing and operating an effective and efficient revenue raising organisation. • Agent of the state for • Assessment of liability to the collection of and accountability of tax • The management, operation and enforcement of the revenue laws

4. Administration of Taxes • Customs Duty • Excise • VAT • Tax on Gaming, Betting, Lotteries • Income Tax - Personal - Corporate - PAYE

5. Objectives of MRA • The key driver for the establishment of the Mauritius Revenue Authority is to provide a facilitating environment for improved organisational performance, in particular enhanced revenue collections. • Overall objectives include: - To improve compliance and taxpayer services - Raise revenues - Improve efficiency of tax administration - Trade facilitation - Tackle corruption and tax avoidance

6. Strategy of MRA

7. Revenue 2006/2007 Rs. (Billion) % of GDP Total Revenue 43.1 20.0 % Tax Revenue 38.6 17.9 % MRA Revenue 34.1 15.3 %

8. MRA Revenues

9. MRA Governance Framework Finance Minister • Oversight and final responsibility • Setting of fiscal policy (including exemptions) • Propose revenue target • Monitoring and supervisory role • Amend and approve budgets presented by board

10. MRA Governance Framework • MRA Board • Chairperson • Two official members • Four unofficial members • Functions • Select and appoint management team • Lay down terms and conditions of service of officers of the management team and other employees

11. MRA Governance Framework • Director General • Appointed by MRA Board • Chief Executive Officer of the Authority • Functions • Implements the policy of the Authority • Administers Revenue Laws

12. MRA Governance Framework • Management Team • Director General • Heads of eleven Departments and two Divisions • Functions • Implements the policy of the Authority

13. MRA Organisation Structure • Legal • IT • Internal Affairs • Internal Audit

14. MRA Employees

15. Institutional Framework: Benefits • Increased revenues • Efficiency • Autonomy • Accountability • Transparency

16. Performance and Efficiency MRA – • has introduced a performance management system for staff with ambitious objectives to increase revenues, organisational performance and efficiency. This will create a stimulating and challenging environment for all MRA staff • has built a high performance culture • has improved terms and conditions • has fixed term performance contracts for senior management • will base all promotions and pay progression on performance

17. Ethics and Transparency MRA - • has required all staff to make a declaration of assets • aims to manage integrity through specially constituted Internal Affairs Division • has placed a mechanism to enforce strict internal controls in systems and procedures through Internal Audit Division

18. Human Resources Framework • MRA resources has legislative framework to establish its own human resource management. Key features that are new or enhanced will include: - Fixed term contracts for management - Broad banded pay and grading structure - Job descriptions, HR manual and staff handbook - Performance management system - Training and development strategy - Code of conduct and disciplinary proceedings mechanism

19. Information Systems MRA Launch: Interim IT system • Project ongoing with State Informatics Limited • Staff will be able to access all systems simultaneously • Support the move to extending the taxpayer based structure, with functional sub-structure in operational services • Facilitate of single desk for customer service • Create visible difference to taxpayers • Supported by increase in PCs / IS resources for staff • Expected lifecycle of 2 to 3 years pending introduction of fully integrated IT system Long-term strategy: Integrated IT system • Expect to launch RFP within four months • IS Director to review requirements with operations and launch RFP • Expected to be introduced within 3 years.

20. MRA Office Premises Ehram Court • MRA staff has started moving to the new building since July 2006. The main benefits will be: - Facilitate the new integrated organisational structure - Improved and integrated customer services facilities - Modern facilities and working environment - Functional open-plan interior design • Customs will continue with existing premises pending the completion of the new Customs House.

21. Milestones • Respond to letters within 3 working days as from 1 October 2006 • Electronic filing of returns & payment of tax (PAYE, VAT & CTAX) • LTD - 100% by 30 September 2007 • MSTD - 100% for employers with > 50 employees • Introduce electronic return for individual by 30 September 2007 • Reduce number of PAYE refunds from 80,000 to 5,000 by September 2007 and refund period from 3 months to 1 month • Make all VAT repayment within 30 days as from 1 July 2006 • Determine objection within 4 months 1 July 2006

22. Mauritius Revenue Authority Questions?