REPORT 2013

4 FRCA SIX MONTHS REPORT 2013
PURPOSE OF THE REPORT
The 2013 FRCA Half Year report is being prepared in compliance with Section 43 of the FRCA Act, which requires FRCA to submit
a report on its activities for the first half of each financial year – Half-Yearly Report. The report is to be submitted by the end
of August, and shall include the information required by the Authority’s Statement of Corporate Intent to be given in the report.
EXECUTIVE SUMMARY
This report contains a summary of achievements made in relation to the broad organizational goals and objectives, linking to
the Key Result Areas and performance targets set out in the 2013-2018 Corporate Plan. It also provides brief reports on the
various activities undertaken by the Authority. This report is aligned to the Critical Success Factors under the Balance Scorecard.
FRCA’s performance targets and assessment are now based on the Balanced Scorecard which is a measurement-based strategic
management system which provides a method of aligning business activities to the strategy, and monitoring performance of
strategic goals over time.
For the first six months of 2013, revenue collection stood at $829.1 million. This was above the forecast by $31.8 million or 4
percent. The major components of revenue were Income Tax, Value Added Tax (VAT) and Customs collections. The total revenue
collected as at 30 June 2013 was 12% higher than that collected in the same period last year. A separate analysis on the revenue
collected is provided under Critical Success Area: FInancial of the Report.
KEY RESULT AREAS & OBJECTIVES
The 2013-2018 Corporate Plan identified six Key Result Areas (KRA) for the Authority and associated organizational objectives,
which are being implemented by the Authority in the respective divisional and sectional plans. They are as follows:
KRA 1: Develop a compliance risk management framework in
order to identify and treat the risks to voluntary compliance
• Identification of Risk to Voluntary Compliance by:
• Bench marking similar Jurisdictions (NZ / Australia)
• Engaging with stakeholder Forums to maximise on
industry knowledge
• Internal business process audits
• Timely Treatment of the Risk identified
• Develop interventions to treat the Risk
• Improve awareness and information services to the
• public
• Develop a framework to treat risks
KRA 2: Optimise FRCA processes, systems, structures, legislation
and policies to ensure they are modern and reflect best practice
to support the aims of FRCA
Aims are to: (a) minimise FRCA costs through maximising the
use of technologies; (b) support the identification and
targeting of risk; (c) minimise the cost of compliance to
business; (d) minimise the opportunity for internal fraud; and
(e) implement the IMF and WCO recommendations:
• Modernize processes and systems and minimize cost
through technology
• Integration of communication systems between
FRCA offices
• Implement video conferencing
• Implement a Valuation database
• Implement Data Warehousing & Data Mining
• Sustainable IT Systems (Review/replacement of FITS)
• Implement a unified FNPF/ID national ID Card -
Procure risk management software
• Implement E-Lodgment through Tax Portal Upgrades
• Implement a data warehouse
• E-Processes. Through technology, taxpayers,
importers and intermediaries will interact with
FRCA in areas of obtaining filing, corresponding and
paying
• Queuing Machine and Manual recording system
to be reviewed to capture common queries and
feedback
• Introduce an Electronic Document Management
System
• Identification of New Off-site and Archival Storage
Area
• Automation of the Tourist VAT Refund Scheme and
other initiatives
• Single Window/Customs System Upgrade. Review
and assess feasibility of establishing a single window
concept
• Support risk identification/ targeting
• Regular updating of Risk Profile Matrix on Industries
with Issues identified
• Integration of risk profiling between Taxation and
Customs