Sucess story SAP Tax management

BADALONA TOWN COUNCIL OPTIMIZATION OF TAX MANAGEMENT WITH SAP TAX & REVENUE MANAGEMENT

AT A GLANCE

“The objective of the technology plan is to situate the Town Council in the best position possible for the development of new public services, so that a lack of the appropriate technology does not restrict the optimization of activities and provision of new technology-based services.”

Antoni Davia, Head of the IT Department of the Town Council of Badalona.

Organization • Name: Badalona Town Council • Sector: Public • Employees: 1,200 • Website: www.badalona.cat • Implementation Partner: everis.

SAP Solutions and Services • SAP Tax & Revenue Management Highlight • This project enhances tax management efficiency by reducing manual tasks and focusing on service to residents, allowing processes to be completed online.

Why SAP • SAP TRM provides a comprehensive management solution, offering a unified view of all taxpayer obligations.

• Robust and reliable solution: A comprehensive solution that guarantees that all the needs of the Town Council are properly met.

• The tool is adapted to the specific needs and characteristics of management processes.

Primary Benefits • Improved efficiency in tax processes.

• Simpler and fewer manual tasks,

SAP Customer Success Story SAP Tax & Revenue Management

optimizing processing times.

• Main information repository for residents and properties, both for tax management and other internal Town Council applications.

• Greater revenue thanks to a reduction in errors.

• Global system interconnected with other external systems, such as the Traffic Department (DGT, in Spanish) and property registry, as well as internal systems, such as accounting.

• Global system interconnected with other external systems, such as the Traffic Department (DGT, in Spanish) and property registry, as well as internal systems, such as accounting.

• Processing of more than 500,000 receipts annually for taxes and fees.

• Processes conducted via Internet, such as Vehicle Tax self-assessment and direct debiting.

• Reduced paper consumption.

Entorno existente • Systems map composed of hundreds of Delphi applications developed separately on an obsolete technological platform, unable to be developed on or integrated with the Town Council portal.

BADALONA TOWN COUNCIL OPTIMIZATION OF TAX MANAGEMENT WITH SAP TAX & REVENUE MANAGEMENT

The Badalona Town Council has renovated its tax management system with a local government tax management project, the first of its kind in Spain, implementing the SAP Tax & Revenue Management solution for integrated management of voluntary collection.

Renovation of government systems and a focus on service to residents represent a clear trend in this sector.

With this in mind, the Town Council of the City of Badalona—a city in the Barcelona metropolitan area with 200,000 residents, and a pioneer in the use of new applications— took on the challenge of modernizing its systems, adding services aimed at residents.

This strategic modernization plan includes a project to renovate the tax management system, the first local government tax management project of its kind in Spain, managing a total of more than 500,000 annual receipts for taxes (vehicle tax, ‘no parking’ signs for entrances in use [vados], IBI, IAE, etc.) and fees (use of the public street, zoning permits, reservations for parking, etc.), and allowing processes to be completed via Internet, such as Vehicle Tax self-assessment and direct debiting.

The project stands out as the first time a municipal government manages all tax processes using the SAP Tax & Revenue Management

solution for comprehensive tax management.

Modernization Process The systems maps of the Badalona Town Council comprised hundreds of Delphi applications developed separately during recent years on a technologically obsolete platform, making it impossible to implement and develop the solution with the Town Council portal.

The new head of the Badalona Town Council IT Department, Antonio Davia, decided to begin the process of modernizing the technological architecture. This renovation process is based on replacing these custom applications with market software packages: Oracle for the portal and the BPM and SAP for tax management.

Everis, a multinational strategy, business, technology and outsourcing consulting company, and a SAP business partner, was chosen as a partner to execute this project, based on their experience in SAP systems and their knowledge of the processing needs of the Town Council.

Project Objectives The solution selected for renovation of the tax system was SAP Tax & Revenue Management. The project to replace the old tax management system had the following primary objectives: • Data Centralization. The Town Council and everis have developed a definition of master data so that SAP could be used as the central repository for resident and property data. This data will be available for consultation through all other applications.

• Greater revenue due to a reduction in errors thanks to the SAP centralized model, allowing for elimination of discrepancies and a comprehensive view of each resident.

• Creation of new public services to complete online processes available on the Town Council portal, reducing the workload of tax management staff.

• Improved internal efficiency through automation of manual processes, as well as savings in paper consumption.

“Implementation of SAP TRM at the Badalona Town Council is part of the management modernization plan, which focuses on resident service and efficiency in tax management.”

Project Organization The project was developed through close collaboration between tax management personnel and everis consultants, both from the Public Sector and SAP & Enterprise Solutions units.

Through this collaboration, the SAP TRM solution was adapted, with high data processing capacity, to the specific needs of the tax management area, with special emphasis on simplifying processes executed by public service staff.

The project was carried out over eight months and was completed with staggered implementation of tax management tools according to the municipal tax calendar.

Benefits The main benefits are linked to the project objectives: • Creation of a single address book for the entire Badalona Town Council.

• Reduction in processing times for data files received from external systems, such as the Department of Traffic (DGT) and the property registry.

• Standardization of data and fewer discrepancies and errors.

• Availability of online services for residents, such as vehicle selfassessment from the portal and direct debiting.

• Access from other departments to tax processes, collection of fees and user registration using the intranet.

Solution Selected In order to implement a comprehensive, flexible and scalable system to improve processes and meet current and future demands, the Town Council selected the SAP solution for tax management, SAP Tax & Revenue Management (SAP TRM) to use as a tax calculation tool.

The local tax management system is expected to improve efficiency in internal processes with fewer and simpler manual tasks. At the same time, system organization has been modernized with a tool that focuses management on resident service, reducing paper use through the incorporation of open web access for residents.

Modernization of the Town Council technology platform includes the implementation of an SOA architecture, with which the new tax management system will be integrated to offer services accessible from both the citizen portal and the rest of the Town Council applications.

The main functionalities of the system are: • Creation of a Town Council central repository for user and municipal territory master data.

• Development of web services accessible from external applications to fully integrate the functionality implemented in SAP with Town Council systems.

• Maintenance and management of tax items.

• Loading and reconciliation of data files from external systems (Property Registry, Traffic, Tax Agency, etc.).

• Implementation of local tax calculation engines.

• Generation and collection of tax receipts.

Next Steps Over the short term, the SAP application will be opened up to the rest of the organization and more services will be offered online for residents.

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