Plateau PresentationAprilL

RAMPING UP REVENUE IN
PLATEAU USING A SMART
REVENUE AND TAX SYSTEM
PRESENTED BY BARNKSFORTE
GROUP
1
BARNKSFORTE GROUP “Your Reliable Solution Provider”

OUR PRESENTERS
• Mr. Temitope Paulson – Protocol
• Mr. Eric Sonnenburg – Chief Technical Officer
(CTO) Presenter
• Mr. Mr. Henry Ajere – Director SDG /
Demonstration
• Mr. Adedayo Bankole - Managing Director /
CEO
2BARNKSFORTE GROUP LTD

SMART Revenue and SMART TAX / Agenda
1. About Barnksforte
 General Overview of ICT division
 Our Vision – Human and Tech Transfers to Africa
 Mission – National development objectives
2. Why our strategic Positioning and IGR Strategy provides unique value
 Company is purposed towards developing solutions that take into account, the
operating environment and conditions of Nigeria
 Why others fail? Resuts and strategy in Lagos not necessarily the same as Kano,
Plateau
 Local and human factor criticality – A solution is only as good as the human capacity
that implements it
 Best world class systems are only successful where all hands fully engaged, stakeholder
involvement, and human capital development are critical factors – This is the difference
3. Solutions – Our unique approach
 SMART Revenue and SMART TAX solutions, tackling the informal and formal
sectors
 So effective because follow the established revenue up front model of major telcos
 Plugs government into the liquidity of the massively untapped informal sector
 Expands the net and revenue base, easy accessibility, far superior to POS model
3BARNKSFORTE GROUP “Your Reliable Solution Provider”

INTRODUCTION
 Incorporated in Nigeria with domestic and
international business portfolios and trade links.
 We offer development solutions in Africa and
internationally.
 BG is a purpose-driven organization with the
products and services, development concepts and
intellectual capital, and business solutions required
for developing the Nigerian economy.

PRODUCTS AND SERVICES
• HR/Payroll/Accounting (ERP)
• Biometric Solutions
• Document Management
Systems
• Unified Communications
• Tax Solutions
• Infrastructure and Equipment
PRODUCTS
• Advisory services
• Business and Systems
Integration,
• Project Management and
Training services
• Forensic auditing and
SERVICES

OUR EXISTING PARTNERS AND CLIENTS
6
• Development Clients
- World Bank, USAID, DFID, and Federal
and state governments and various MDA’s
with our affiliates.
• ERP Partners
- SAP, Oracle, Microsoft
• Technology Partners
- IBM, HP, Microsoft, Cisco
BARNKSFORTE GROUP LTD

BARNKSFORTE GROUP LTD 7
 ICT driven E-Governance initiatives improve IGR, increase transparency (accountability), and
improve service delivery and effectiveness of government
 Post implementation recovery figures for states range from 10% to 50% or more improvement
in revenue recovery. Conservation of resources across the value chain
 This is not new thinking: This is a must have in a post-oil economy, cannot afford not to evolve
and adapt to economic climate/conditions to survive
 Thousands of direct jobs created, more than those displaced and cleanup of informal and
improperly managed workers (local council/area touts enforcing unsanctioned collections and
fines etc…)
 10’s or 100’s of millions or even billions per month improvement in revenue generation and
conservation for state economy, Billions saved during a tenure
 Conserved revenue sustains hospitals, roads, schools, women and youth empowerment
initiatives, and develop state infrastructure to become the envy of the most effective
governors
 A skilled, efficient and motivated workforce focused on serving the citizens, businesses and
visitors
 Effective integration between existing operational applications
 Increased efficiency and productivity and reduced paper generation
 Improved processes and workflows to meet new efficiency standards
 Enhanced automation and decentralization of the budget preparation process
 Standardized databases to facilitate information sharing to key stakeholders and decision
makers across different levels of government
 Standard tools for analysis of organization wide information to ensure data integrity
 Tight Financial Controls across purchasing, receivables and payables
 Streamlining of functions performed at the department level and duplicated at the financial
service level
 Elimination of duplicate data entry between systems

SMART REVENUE SYSTEM
OVERVIEW
• 3 simple system elements
– Smart Revenue Card
• Ties tax payers in the state to a universal Taxpayer
Identification Number (U-TIN) and their personal
information to a record in database
– Smart Revenue Terminal
• We train thousands of employees to operate the
cashless equipment to collect revenues
– Central Database
• Contains the personal information records, account
and U-TIN information and any credit or debit on the
account holder. Coordinates transactions

Why Internally Generated Revenue (IGR) Repositioning
To align with the economic direction of your administration as stated;
‘Engendering sustainable economic growth in the face of the present dwindling revenues’
Current Realities
Plateau State Internally Generated Revenue (IGR) Summary
Year 2010 Year 2011 Year 2012 Year 2013 Year 2014
3,398,815,261.07 4,520,622,617.37 6,927,858,653.07 8,486,806,640.08 Est. (8.2Bn)
Monthly Average
283,234,605.09 376,718,551.45 481,101,101.76 707,233,886.67 Est. 683M
*Data source: National Bureau of Statistics

It is clear from the above, especially with the recent falloff in State Revenue in 2014/2015 and the
high percentage (near 70%) coming from a single source (PAYE) in the formal sector -- we can do
much together to cast a greater tax net, improve transparency and efficiency of government
operations, stop leakages, provide greater oversight, and create a tremendous positive impact by
implementing internationally recommended solutions and best practices as found herein.
Projected Revenue (very conservative model, we expect to succeed much farther)
Plateau State Internally Generated Revenue Projections based on 50% annual improvement
Year Year 2015 Year 2016 Year 2017 Year 2018
Gross Annual Est. Est. 8B Est. 12B Est 18B Est 27B+

Other benefits
• Dashboard controls for decision makers, enhanced reporting and
data mining. Transaction level (level 2 NIBBS muti-view) views,
Dashboard real time data down to MDA/Department/Service
• We are a NIBBS Integrator/Aggregator
• High scalability, highest security (US Gov. accepted)
• Easy Deployment, Flexible (works both formal/informal and across
all MDA’s)
• Massively Expands Tax net w/o increasing ind. Taxes
• Accessible and convenient to all taxpayers
• NGN50/DAY X 30 DAYS x 1M taxpayers (informal) = NGN 1.5B in
revenues a month we can capture!

Other benefits contd.,
• Boost internally generated revenue, eases collections, and automates processes
• Internal governance
• Drives efficiencies in government administration, blocks leakages: Cashless
• Compliance
– Strengthen transparency and accountability
• Service delivery
– Government responsiveness and accountability
• Regulation and policy
– Formation and enforcement of regulation and policy
• Employment opportunities
– Skills acquisition and training enhancement for hundreds of existing state
employees to administer and manage system. Thousands more employed in
revenue collection activities, sales of revenue recharge card, and supporting
roles

3 MAIN OBJECTIVES
• To assess,
collect and
account for
all taxes and
revenue due
to Plateau
State,
penetrating
informal
sector
thoroughly
and
• To supervise
the collection
and accounting
for all other
local revenue
by all collecting
ministries in
Plateau State
with the
provision of
section 85(B)
PITA
• To execute
appropriate
advisory
services to
integrate
ICT with
IGR for
superior
performance
and inward
revenue flow
13
BARNKSFORTE GROUP LTD

 Revenue is simply money received
 Revenue is the breath and life in the nostrils of all
Governments
 No Government however laudable its programs can
excel without adequate and regular in-flow of revenue
PREAMBLE:
INCREASING REVENUE

Sources of Revenue of Governments:
1. Statutory Allocation.
2. Internally Generated Revenue (IGR) i.e.
Internal Taxes, Fines, Fees, User Charges.
3. Business Investment.
4. Foreign Aids.

Why the Emphasis of Governments on IGR:
1) It is the most dependable, most sustainable, and most
veritable singular source of Revenue.
2) Dwindling distributable Revenue from the Federation
Account
3) The importance of IGR can therefore not be over-
emphasized.

Situational Analysis of IGR in Plateau State:
 What is the current situation of IGR in Plateau State?
 What is the Trend Analysis of IGR in Plateau State?
 What is the comparison between IGR in Plateau State and
other States?

Prerequisite for Optimal Performance of
IGR in Plateau State
 Explore yet-to-be-tapped high revenue potentials
within the territory
 Generate and maintain an accurate database of
taxpayers, tax payment and collection within Plateau
State
 Automate assessment procedure to ensure it is adequate
and effective

 Automate revenue collections to ensure adequacy of
remittance and accurate reporting
 Establishment of an effective enforcement machinery

OUR OBJECTIVES:
 To double the present IGR collection of the Plateau State
Government within the first 12 months of engagement.
 To achieve a minimum of 300% increase over a period of
36 months over and above the present collection.
 Institutional Restructuring of the Plateau State Internal
Revenue Service.

PERFORMANCE TARGET TIMETABLE
PERIOD
% REVENUE
INCREASE
AMOUNT
First 6 Months 50% 750,000,000.00
12 Months 100% 1,000,000,000.00
24 Months 150% 1,250,000,000.00
36 Months 200% 1,500,000,000.00
48 Months 300% 2,000,000,000.00

OUR IMPLEMENTATION STRATEGY
For our objectives to be fully accomplished, we
believe appropriate implementation strategies must be
designed and vigorously pursued for a 100%
accomplishment.
Critical among our strategies are as stated below:

INSTITUTIONAL RESTRUCTURING OF Plateau
STATE INTERNAL REVENUE SERVICE [Plateau IRS]
• Guided by the PITAM no 104 of 2012, the Board of
Internal Revenue, Board of Internal Revenue is the
relevant tax authority.
• The Board therefore occupies a key position in the
Revenue Generation efforts of Plateau State

• We will address some key areas of operation of the Board.
Relevant questions here are:
1) What should be the total number of employees in the Board?
2) What should be the level of qualification of each staff?
3) How many departments should the Board have?
4) How many staff should be in each department?
5) What does each department do?
6) How many tax stations should be located outside the Board
Headquarters?
7) What should be the total cost of running the Board?
8) What percentage of total Revenue is this?

9) There should be established training programs, which would
add value to the staff
10) Promotion should be based on the ability to meet set targets,
rather than the number of years spent on a seat
11) The remuneration of the Board should be better than the civil
service
12) There should be special incentives for staff who meet their
targets

• These issues should be addressed with a view to positioning and
strengthening the Plateau State IRS.
• Performance based remunerations will be recommended.
• Targets will be given and Key officers shall be held accountable
to such targets as a performance reward system.
• Our focus should be a Target-driven revenue administration.
• Regular training will be organized, e.g on the job training,
seminars and workshops.

• Automation of Revenue Administration of Plateau State,
including Assessments, collections, certification and report
system.
• Full automation of all forms and other security documents.
• Development and adoption of a vision statement by all the
Board Staff.
• Carving out a respectable image for the Board and empowering
the Public Relations arm.
• Recommendation of the establishment of a ‘Revenue House’ i.e.
a corporate headquarters for the Board.
• Recommendation of the establishment of Revenue complaints
and Information Unit.

ENUMERATION (WIDENING OF TAX NET)
The power to charge/impose or increase rates of the major taxes
rests in the National Assembly (see items 58 & 59 of the Executive
list in schedule 2 of the 1999 constitution). Therefore appreciable
increase in IGR can only be achieved through the expansion of the
Tax Net.
• The Tax Population of the state should be determined through
enumeration for an effective database for both tax and non tax
revenue.
• The enumeration exercise shall be carried out from Local
Government to Local Government, town to town, street to street,
and sector by sector.

• Enumeration of houses, shops, schools, hospitals, offices,
petrol stations etc on all major streets will be carried out such
that the owners and their employees are brought into the tax
net.
• The number of Taxpayers in each Sector will be determined
e.g. number of Legal Practitioners, School Proprietors etc.
• Our enumerators shall be adorned in Board of Internal
Revenue flash jackets, face caps, ‘T’ shirts, to give the exercise
instantaneous state-wide acceptance.

ASSESSMENT
• This is the first leg in the tripod of Revenue Administration.
• It is therefore a critical aspect of any effective tax
administration
• For any assessment to be effective, there must be adequate
information about the taxpayer, hence the importance of
ensuring effective data collection about the taxpayer.
• Some statutory forms shall be made available on-line to
taxpayers to encourage self assessment process.

• Our focus is to fully automate the assessment process of the
Board.
• Review of the assessed amount if necessary shall be jointly
carried out by the Board and the consultant to encourage
effectiveness and efficiency of the system.
• The approach will be to collate and maintain useful
information about the taxpayer electronically.
• Due to the time gap between raising an assessment and actual
collection of tax, we should ensure that assessments are raised
promptly on both the formal and informal sectors.

Formal Sector – PAYE
PAYE Tax accounts for the largest single source of Tax
Revenue.
 How many companies are registered for PAYE?
 Roughly how many should be registered?
 How many remit monthly deductions regularly?

 Non- deduction
 Under deduction
 Non- remittance
 Under remittance
 Late remittance
 Limited Coverage (Tax net should be widened)
Problems commonly plaguing PAYE.

OUR SOLUTION STRATEGY
A. Setting up of task forces on compliance
B. Sectorial categorization of companies
C. Monitoring Tax stations through revenue centres
D. Correspondence; Issuance of :
• Non-remittance letters
• Reminder letters
• Intention to prosecute letters
• Trend analysis
• Warning letters to companies not registered for PAYE

E. Engagement of Tax Monitoring Agents (TAMA) for
enumeration and tax audit.
F. Tax Audit
G. Tax Investigation
H. Dollar Audit
I. Deemed Income
J. WITHHOLDING Taxes

Action Plan for Informal Sector
1) Widening of Tax Net. Implement SRS
2) Engagement of TAMA for enumeration
3) Collation of list of high net-worth individuals
4) Creation of database on individual tax payers
5) Classification of individual taxpayers into:
 Professional groups
 Trade groups and associations
 Artisans
6) Establishment of minimum tax payment levels for
professionals , trade groups and artisans
7) There shall be no governmental patronage without evidence
of payment of tax.

7) Certain infrastructure within the state shall not be enjoyed
without presentation of a tax clearance certificate.
8) Physical presence in major markets
9) Strengthening/sustenance of self assessment scheme
10) Introduction of new operational units
 Self Assessment Review unit
 Traffic/ENS IRS Unit
 Judiciary Unit
 Religious Unit

Non – Tax Revenue
Lands: Monitoring of land and special duties section to
evaluate the assessment of people dealing in land matters e.g C
of O, Consent, Ratification e.t.c.
• Review of Rates, Levies etc. all Fees, Levies and Rates under
the ambit of the state shall be reviewed as some of them are
presently obsolete.
• Facilitation of LOCAL GOVERNMENT LEVIES (approved
List for collection) Law as against the Taxes and Levies
(Approved list for collection) Decree No. 28 of 1998.

SOME TAXES AND REVENUES
Taxes
 P-A-Y-E (Pay As You Earn)
 Direct Assessment
 Withholding Tax
 Rent Income Tax
Revenues
 Motor Licensing Administration
 Business Premises Levy*
 MDAs
 Polls betting*
 Stamp duties
 Development levy

SOLUTIONS
1. State Integrated Tax Administration System (SITAS)
2. Bank Excess Charges/Loss Recovery (Forensics)
3. Smart Revenue

State Integrated Tax Administration
System (SITAS)
Tax Collection and Administration Software for Public Sector
• Data Processing – Import and processing of tax data (tax returns,
taxpayer statements and audits)
• Individual Taxpayer Accounts – Calculation of liabilities by taxes
and representation of figures in different ways (tax cards,
balance, reports etc)
• Payment Processing and Tracking - Automatic tracking, import
and processing of taxpayer payments
• Registration of Taxpayers – Registration of taxpayers
• Central Database – A central database for storing data gathered
from taxpayers, users etc

System (SITAS) – Cont.
• Reports and Analysis – Pre-defined/On-the-fly reports and drill
down analysis
• Payment Reconciliation – Reconciliation of taxpayer payments
• Notification System – E-mail and SMS notifications to taxpayers
• Self-Service – Online submission of tax returns and other
documents
• Third Party Integration – Integration with third party systems
• Workflow – Business process automation
• Messaging – Messaging between users

System (SITAS) – Cont.
• Centralized and Web based
• Integrated (Interswitch, JTB)
• Extendable architecture (software and hardware)
• Built-In Redundancy
• Fail-over
• In-built security
• Off-site backup
• User-friendly interface
• Customizable
• Drill-down analysis

System (SITAS) – Cont. The E-Portal

E-Portal Tax Calculator Self Assessment

E-Portal Billing Details (Assessment)

E-Portal Payment Page

SMART REVENUE SYSTEM (SRS) Cont.,

BENEFITS
Barnksforte solutions improve the following in Plateau State
• Boost internally generated revenue, eases collections, and automates processes
• Internal governance
– Drives efficiencies in government administration, blocks leakages: Cashless
• Compliance
– Strengthen transparency and accountability
• Service delivery
– Government responsiveness and accountability
• Regulation and policy
– Formation and enforcement of regulation and policy
• Employment opportunities
– Skills acquisition and training enhancement for hundreds of existing state
employees to administer and manage system. Thousands more employed in
revenue collection activities, sales of revenue recharge card, and supporting
roles

BENEFITS CONTINUED
Barnksforte solutions improves the following in Plateau State
• Leakages: Billions saved in lost revenue and leakages during remittance of cash
• IGR
– Billions of naira in improved revenue collections in the informal sector every
month, casting a wider tax net (without increasing taxes). Formal sector
improvements also considerable, stopping leakages during assessment and
payment cycle, halting tax avoidance loopholes and redefining processes
• Time
– Short implementation time (can start improving IGR fast!)
• Diversification
– Begin to diversify state revenue, reduce dependency on oil sector, Federal
Allocation etc… and gain independence
• Helps to refocus Government of Plateau on efforts to improve Infrastructure,
Security, Commerce, service delivery and welfare of public by giving them the
revenue, time, and management capabilities freed up when we implement this
program and take on the challenges of delivering state revenues for Plateau

Revenue Agents from Barnksforte’s Team
EDO at work on 08/10/2015 Central Hospital,
Benin

4 CRITICAL SUCCESS FACTORS
1. Absolute government support and timely
approval
2. Access to stake-holders and availability of
supporting information
3. Availability of Funding where required
4. Deployment of training and capacity
building

BARNKSFORTE “Your reliable solution provider” 53
Barnskforte Global
No 5, Atakpame Street
Off Adetokunbo Ademola Street
Wuse II - Abuja
Tel: 09 291340, 08099990715,
07033556611
E-mail: info@barnksforteglobal.com
Website: www.barnksforteglobal.com

Plateau PresentationAprilL

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