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New Tools Help Governments Close the Tax Gap
It's a nagging and costly problem: For a number of reasons, governments everywhere see a big difference between the amount of taxes owed by constituents and the actual receipts being collected each year.
In the U.S. this 'tax gap' represents a US$290 billion problem that exacerbates federal deficits and burdens taxpayers who pay their fair share on time. Collection shortfalls aren't just a problem for the federal government—states and municipalities also feel the pinch. California, for example, says its tax gap is about US$6.5 billion per year.
New collection and enforcement legislation may help stem the shortfalls, but agencies also need the right tools to understand where gaps are occurring and then take corrective action.
New Features Make Collection Easier
Oracle's Enterprise Tax Management product and Siebel Public Sector Case Management tool provide an enterprise approach to tax collection improvements, and now a number of new capabilities in the latest release, Siebel Public Sector 8.0, further aid those efforts.
'If you can collect even a small part of the shortfall, say 10 percent, that can make a big difference for agency budgets,' notes Supriya Mukhapadhyay, Oracle senior director of product strategy.
For example, one European country implementing Oracle's Enterprise Tax Management solution for agency-wide tax collection is predicting quickly boosting the collections by EU350 million. Accelerated payments resulting from the new collection system should earn the government an extra EU2 million in annual interest.
Complete Approach—or Module by Module
In addition to the Siebel suite's new capabilities, the revenue and operations management software made available through Oracle's acquisition of SPL WorldGroup late last year provides an enterprisewide transactional system for managing financial data, collecting payments, and performing related accounting duties. This, combined with the Siebel capabilities, Oracle's real time decisioning (RTD) tool, and Oracle Business Intelligence Enterprise Edition, mean a complete solution for tax-gap combatants.
'Agencies can use these best of breed products together as a complete end-to-end solution suite or implement call centers, case management, ananlytics or tax processing individually, depending on their needs,' Mukhapadhyay says. 'Oracle's approach isn't all or nothing. Agencies can address specific pain points and then add new pieces in an incremental fashion.'
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