The Norwegian Tax Administration is anually receiving payslips and tax information from all employees in Norway. Before this LTO service was launched, the filing channels were on paper, floppy discs and tapes. With LTO this information is now filed electronically by employers via their ERP-system or by the Altinn portal. 22 ERP suppliers have integrated to the Altinn interface representing more than 90% of the employers. Altinn is the official website and a basic architecture component in Norwegian eGovernment for businesses. The LTO-service is unique as the filing is done directly from third party ERP-vendors based on open standards.
Policy Context
The case contributes to national strategies for Tax Administration: - Make it easier for the end-users to act correctly. - Actively cooperation with external actors. - Improved control prosesses of incomes and taxes in order to reduce economical crime.Description of target users and groups
The target group is ERP vendors representing companies up to 1.000 employees. Another target group is small companies that will do their filing of LTO by the Altinn portal. There are 35 ERP vendors in Norway, and their market is appr. 220.000 companies. The target group covers 40 % of all employees in Norway.Description of the way to implement the initiative
- Never loose focus on time, cost and quality. - Make a detailed project plan for managing the project. - Active strategy for ERP vendors. Create competition in the ERP market. Interface LTO via Altinn supports the ERP vendors business as improved service to their customers. Investments in interface to LTO to be done by each of the ERP ve ndors. - Use the organizations of the accounting companies delivering services to our target companies (NARF). - Be proactive and foreseen. - Try to inspire and motivate your team to reach your objectives.Technology solution
3rd party (ERP) channel with standard interface to Altinn, Altinn portal for none ERP users.Main results, benefits and impacts
This case is exceptional because it has proven operational 3rd party integration. 22 ERP vendors have integrated the first year. 93% of our target group are users of the service. Now we harvest from the basic infrastructure of the Altinn filing architecture. Benefits for employers are reduced manual routines and reduced costs. For Norwegian Tax Administration it means reduced manual work and improved working routines, reduced costs, and improved tax control routines. Benefits and costs: - Reduction of manual work for end-users and Tax Administration. - Cost reduction for end-users and Tax Administration. Number of users (companies): - Potential end-users first year was 127.000 companies. - The objective of 50% market penetration was achieved the first year. - Future potential end-users are 220.000 companies, representing 2 mill. employees. Direct and indirect impacts: - This case has direct impacts on businesses and administration. - Improved data quality - Acknowledged reputation - Make it easier to act correctly - Basis for interoperability in public sector – salary information will be distributed to other agenciesReturn on investment
Return on investment: Not applicable / Not availableTrack record of sharing
The Norwegian Tax Administration has a close cooperation with the other Scandinavian countries. Information and marketing activities through web-sites, newspapers, brochures and direct communication through email and letters. Good practice has also been shared through seminars, conferences and different meetings.Lessons learnt
Lesson 1 - Involve the end-users from day one. Lesson 2 - Involve ERP-vendors and 3rd party early in the prosess. Support the business strategy of the ERP vendors. Lesson 3 - Pilot and testing period must not be underestimated. Scope: National
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