The government endorsed the Finance Ministry’s plan to separate the criminal investigation institutions – the Tax and Customs Police Administration and the Internal Security Board – from the State Revenue Service.
The Finance Ministry was instructed to prepare and submit to the Cabinet of Ministers draft legislation providing for separating the functions and tasks of the Tax and Customs Police Administration and the investigative and operational functions and tasks of the Internal Security Board from the functions and tasks of the State Revenue Service.
The Finance Ministry in cooperation with the Justice Ministry has also been instructed to submit to the Cabinet of Ministers a draft law on amendments to the Criminal Procedure Law, which provides for clarification of investigative bodies and their institutional jurisdiction, and a draft law on the Tax and Customs Police.
According to the Finance Ministry’s informative report, the functions and tasks of the Tax and Customs Police Administration are to be transferred to the Tax and Customs Police, a direct administrative body established under the supervision of the finance minister.
The operational and investigative functions and tasks of the Internal Security Board are to be transferred to the Corruption Prevention and Combating Bureau (KNAB).
The State Revenue Service will further develop as a customer-oriented service institution serving the public interest.
The informative report states that the units which aim to prevent, detect and investigate crime, rather than to provide services or advice, will be separated from the State Revenue Service.
The Information Report points out that it is essential to ensure that the model of cooperation between the State Revenue Service and society develops in line with the vision of the Organization for Economic Co-operation and Development (OECD), i.e. to develop and move the tax administration towards a high level of mutual cooperation – from the level of “tax administration – taxpayer” and “tax administration – client”, to the level of “partnership”.
The State Revenue Service Development Strategy 2023-2026 sets the goal of becoming one of the most efficient tax and customs administrations in Europe, a leader in the development of services that serve the public interest.
The report states that one of the factors hindering the development of the State Revenue Service is the large amount of additional functions and tasks imposed on the service that are not specific to its activities, which strains its capacity to perform its core functions.
Finance Minister Arvils Aseradens (New Unity) stressed that tax administrations around the world are generally moving towards the institution and the client being partners. The State Revenue Service should also serve the public interest and become a partner of the client.
“It is very important for us to promote public and business confidence and voluntary tax compliance. This means that the State Revenue Service needs to develop its processes in line with the needs of its diverse customer base and provide a highly developed customer service. In turn, this is not possible without the digital transformation of the service. Only in this way will the State Revenue Service become one of the most efficient tax and customs administrations in Europe,” said Aseradens.
Source: BNS
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