Federal Taxation Service of Russia Ensures 30% Tax Revenue Increase, Cuts Storage Costs 10x, and Centralizes Data Access
 
 

Federal Taxation Service of Russia Ensures 30% Tax Revenue Increase, Cuts Storage Costs 10x, and Centralizes Data Access

Federal Taxation Service, a government agency of the Russian Federation reporting directly to the Ministry of Finance, is responsible for interpreting and enforcing Russian fiscal legislation; registering legal entities and individuals; licensing alcohol, tobacco, and gambling businesses; and ensuring full and timely payment of all taxes and levies due to the state. With headquarters in Moscow, the Federal Taxation Service operates nine regional offices that oversee major taxpayers and a wide network of local tax offices. The agency works closely with many international tax organizations, including the Intra-European Organization of Tax Administrations and the Organization for Economic Cooperation and Development.

 
 

 
 

Challenges

A word from Federal Taxation Service

  • “With Oracle Exadata Database Machine, we finally achieved what we could not with SQL servers—centralized access to all fiscal data, 20x higher performance, and a tenfold reduction in storage costs.” – Ildar Abdullin, Head of IT Department, Federal Taxation Service

  • Enable Federal Taxation Service’s head office to tap into full fiscal data from regional and local tax offices—from taxpayers’ records to public revenues—while ensuring rapid data retrieval
  • Ease internal reporting processes, such as submitting summary tax reports to a superior hierarchical level within the organization, without compromising the integrity of confidential data
  • Reduce manpower and hardware resources—database administrators, servers, and storage arrays—at local and regional tax offices to cut overall IT costs without compromising data management performance
  • Reduce storage space and achieve maximum storage savings without losing key fiscal data, such as taxpayers’ records that go back to the 1990s

Solutions

  • Moved from Microsoft SQL Servers to three instances of Oracle Exadata Database Machine to consolidate key fiscal data—including taxpayers’ records and liabilities, tax control metrics, and public revenue data—at the federal level, contributing to better decision-making and improving visibility into countrywide tax collection performance
  • Enabled regional tax offices to monitor tax liabilities of major taxpayers—such as oil and gas, metallurgy, engineering, military, and defense companies—ensuring a 30% corporate tax revenue increase to the public purse
  • Enabled local tax offices to better monitor individuals’ financial liabilities, such as income and real estate taxes, increasing local tax revenues threefold
  • Enabled the organization to reduce the number of IT personnel—such as database, system, and network administrators across local and regional tax offices—by 50%
  • Used Oracle Database to store nationwide fiscal data without querying each regional and local tax office separately, retrieving tax-related information 20x faster than before and achieving zero downtime
  • Improved tax control over alcohol and tobacco production and distribution, reducing illicit sales of ethyl alcohol, alcoholic beverages, and tobacco products by 20%
  • Used the Hybrid Columnar Compression feature to compress fiscal data stored at local and regional tax offices, reducing storage space by 90%—from 400 terabytes to 40 terabytes
  • Gained the ability to submit taxpayers’ reports directly to a superior level without saving the information in a local database, achieving real-time fiscal data refresh and skipping overnight jobs of pulling out archived data to prepare tax report summaries
  • Used Oracle Real Application Clusters and Oracle Active Data Guard to ensure real-time back up of taxpayers’ reports, making it possible to save and restore fiscal data 90% faster while achieving end-to-end data protection
  • Used Oracle Exadata Database Machine to replace legacy servers and storage arrays at the local and regional tax offices, significantly saving floor space, and reducing power and cooling

Why Oracle

“Unlike Microsoft SQL Server, Oracle Exadata Database Machine can handle huge data volumes, thanks to its Hybrid Columnar Compression feature. Besides, we have all the hardware in one place and don’t need to deal with as many servers,” said Ildar Abdullin, head of IT department, Federal Taxation Service.

Partner

  • Oracle Partner
    IBS

The Federal Taxation Service and Oracle Platinum Partner IBS tested Oracle Exadata Database Machine in Edinburgh, Scotland, by emulating its four most demanding business processes and a high number of users. Oracle Exadata performed extremely well, and the Federal Taxation Service started pilot deployment. IBS deployed, configured, and patched Exadata Database Machine within a month, working with Oracle Premier Support to resolve minor implementation issues. IBS is now assisting the Federal Taxation Service with full system rollout.