Paulo's Accountants Syndicate, applauds the move toward electronic tax processing because it reduces errors and abuses. It would have been impossible to get that information by telephone. Paulo and Bahia are quick to point out that better service is only part of their reform agenda. In Bahia, for example, the program helped pay for extensive staff training and for procuring computers, office facilities and vehicles for field tax inspectors. Funds are also being used to develop custom software applications that support electronic tax filing, communications, accounting and budget tracking functions.
Management remains key.
Although information technology plays a vital role in tax modernization efforts, it is by no means a cure-all. This less tangible side of the reform process includes the difficult job of drafting and passing laws that simplify the tax system and mandate greater accountability. The Brazilian federal government, along with several state governments, is currently preparing a number of such proposals, and the long-term success of the entire reform program will depend largely on whether the new laws are passed. It will also depend on whether the tax system is reformed all the way down to the local and municipal level. Under Brazil's 1988 constitution, municipalities are authorized to collect and administer revenue from taxes on urban property and services.