United Nations Public Service Awards Case Studies

Synopsis.-
“Justicia de Ventanilla” (Justice Window) is a program developed by Procuraduría Fiscal (Office of the Fiscal Prosecutor of Puebla’s State Finance Secretariat). The program aims to simplify the resolution of administrative legal recourse which is promoted by a taxpayer who was required for compliance with any tax liability, even when such taxpayer being credited is current on the fulfillment of the obligation for which he was required.
The overall objective of this program is aimed to achieve two main goals: a) first: facilitate to taxpayers in obtaining favorable resolutions, without substantiate long and expensive administrative or judicial procedures; b) second: reducing the workload in Procuraduría Fiscal areas, which is in charge of resolving the administrative legal recourses, as well as those responsible for dealing with court procedures, when taxpayers are not satisfied with the administrative resolution issued by Procuraduría Fiscal.
A virtuos effect produced by the program “Justicia de Ventanilla”, resides in the reduction in public expenses. This, because the study on the cost associated with the procedure, done by Procuraduría Fiscal, concluded that all the expenses done by the government for the substantiation of a standard procedure to issue the final determination of a regular administrative legal recourse reaches the amounts of $1,278.83 mexican pesos (approximately $100.00 US Dollars); while simplifying that procedure, through the “Justicia de Ventanilla” program solves the dispute administratively and reduces costs down to $200.00 mexican pesos (approximately $15 U.S. Dollars).
The “Justicia de Ventanilla” program was implemented atn the beginnig of the year (2012), and by the end of October, the Procuraduría Fiscal had solved through this program 32% of those recourses related with contributions or tax obligations of the federal order; and solved the 21%, concerning contributions or tax obligations of the local order.
In conslusion, the implementation of “Justicia de Ventanilla” program produced several positive effects, as follows:
a) The Local Government stands on the side of the taxpayer, giving no reason to force him to take a long and expensive procedure, when the taxpayer proves to be current regarding his tax obligations;
b) The Local Government opens a new, agile and friendlier, channel of communication with the taxpayers;
c) The Local Government reduces administrative burden on the taxpayer;
d) The Local Government reduces internal administrative burdens, by building a flexible mechanism that allows to Procuraduría Fiscal concluding those administrative legal procedures without issuing complex resolutions;
e) The Local Government reduces operationals costs and, consequently, generates savings in public spending, because a resolution issued through the “Justicia de Ventanilla” program is 84.36% cheaper, than issuing a complex resolution after following the whole procedure for a regular administrative legal recourse.

What is the initiative about? (the solution)
The overall objective of the program is aimed at attacking two aspects: first, make it easier for fulfilled taxpayers to obtain favorable resolutions to their interests, without substantiate long and expensive, administrative or judicial procedures; and second, relieve the workload in the areas of Procuraduria Fiscal, in charge of resolving the administrative procedures concerning administrative legal recourses, as well as those responsible for dealing with court proceedings to support those resolutions issued by itself. Key benefits from the program “Justicia de Ventanilla”.- a) The Local Government stands on the side of the taxpayer, giving no reason to force him to take a long and expensive procedure, when the taxpayer proves to be current regarding his tax obligations; b) The Local Government builts a new, agile and friendlier, channel of communication with the taxpayers; c) The Local Government reduces administrative burden on the taxpayer; d) The Local Government reduces internal administrative burdens, by building a flexible mechanism that allows to Procuraduría Fiscal concluding those administrative legal procedures without issuing complex resolutions; e) The Local Government reduces operational costs and, consequently, generates savings in public spending, because a resolution issued through the “Justicia de Ventanilla” program is 84.36% cheaper, than issuing a complex resolution after following the whole procedure for a regular administrative legal recourse.

Who proposed the solution, who implemented it and who were the stakeholders?
Who proposed the intiative, who implemented it and who were the stakeholders? The initiative was proposed by Procuraduria Fiscal of the State’s Finances Secretariat, realizing the recurrence of cases in which taxpayers had received requirements regarding tax obligations they could demonstrate having accomplished them, before being notified. The Undersecretary, from the Finances Secretariat, being responsible for the development of auditing and collection policies, supported the proposal made by Procuraduria Fiscal, acknowledging that with it taxpayers would be benefited. The Finances Secretary agreed favorably the proposal and issued the Administrative Agreement, whereby he delegated on the Deputy Director in charge to collect teaxes, the power to revoke administrative requirements on taxpayers wrongly reported who already had complied with their tax obligations, before being notified with those requirements. At this time, the two areas from the Finances Secretariat responsible to lead the program called “Justicia de Ventanilla”, are: A) The Procuraduria Fiscal by requesting opinion to the Deputy Director in charge to collect taxes, when the first named realizes there is the possibility that the taxpayer who was required to compliance with the obligations, that he has already acomplished. Similarly, Procuraduria Fiscal resolves and concludes the administrative legal recourse procedure, notifying the taxpayer that fact, once theaforementionedDeputy Director previously has administratively revoked the requirement. B) The Deputy Director in charge of collecting taxes, in exercising the power to revoke administratively the requirement, improperly complied and notified to the taxpayer; and when notifying to Procuraduria Fiscal about the revocation, in order that this office could conclude the administrative legal recourse proceedings, initiated by the taxpayer and notify this fact to him.

Describe how and when the initiative was implemented by answering these questions
a. What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
Implementing this strategy initially required to diagnose the problems which affect taxpayers and the Local Government, due to have to litigate a lot of cases on which the authority could acknowledge in advance that the taxpayer has the reason. Once located the main problem, Procuraduria Fiscal initiated the study of the laws, regulations and internal administrative rules, in order to build a solution. When we realized that internal rules and regulations did not grant to any officer of the Finances Secretariat the authority to administratively revoke the requirements that have been notified to taxpayers unfairly, we recognized that Procuraduria Fiscal must follow the whole process regarding to the administrative legal recourse and, therefore, requiring the taxpayer who suffered the need to follow the procedure against the authority, expendinghis time and money on it. Having recognized the unfairness of this reality, Procuraduria Fiscal proposed the creation of a new administrative rule into the Finances Secretariat, consisting of an Administrative Agreement issued by the Secretary of Finances, whereby delegated to the Deputy Director in charge of collecting taxes the faculty to revoke administratively those requirements improperly executed against taxpayers who already had fulfilled their tax obligations, in order that Procuraduria Fiscal could be also in a position to conclude the administrative legal recourse promoted by those taxpayers improperly reported whit unfair requirements. The Administrative Agreement issued by the Puebla’s Secretary of Finance was published in the State’s Official Gazette, to give general validity. Since then, there have been terminated revocation recourses through the program called “Justicia de Ventanilla”, benefiting taxpayers who wrongly received requirements related to tax obligations they had already served before being notified.

b. What were the key development and implementation steps and the chronology? No more than 500 words
What were the key development and implementation steps and the chronology? Since the beginning of 2012, Procuraduria Fiscal started to receive an unusual amount of defense procedures iniciated by taxpayers against requirements for tax compliance or payment, caused by a policy of rigorous control and monitoring of tax obligations. By January 17, the administrative resources increased by 792% recall and judgments of invalidity by 257%, compared with those received during the same period a year ago. Seeking for a strategy to address the increasing of legal procedures against the Local Government, regarding to taxes, we analyzed the administrative legal recourses and notice that, in 39.6% of cases showed, taxpayers have fulfilled their tax obligations before they were required to, making consistent give reason to the taxpayers placed on the condition described. On January 18, Porcuraduria Fiscal requested to the Under Secretariat in charge of collecting taxes to assess implementer a policy for administrative legal recourses and judgments management solution, through a simple clarification issued by tax collecting areas, avoiding taxpayers and the state government, the need to follow lengthy and costly procedures. On January 25, for the first time, was issued an agreement through which Procuraduria Fiscal informing to a taxpayer that his case was referred to the Deputy Direction in charge of tax collection, for administrative solution for having proved the fulfilment of his taxes obligations, before being notified with the requirement. However, another problem occur: the Federal Administrative Court held that the administrative policy solution implemented was not enough to declare the conclusion of trials processed before it; mainly for two reasons: the administrative agreements did not decreed the definitive revocation of the contested decision; and there was no legal basis for the aforementioned Deputy Director, to issue such revocation. Then, on March 5, Procuraduria Fiscal requested to the Under Secretariat, before mentioned, to make even more accurate statements regarding the annulment of the requirements improperly reported to taxpayers, in order to solve the first of the deficiencies found by the Federal Courts, already referred. In order to fix the second problem, Procuraduria Fiscal designed a draft for an Administrative Agreement which should be issued by the Secretary of Finances. Finally, on June 13, the Administrative Agreement, previously signed by the Secretary of Finances, was published in the Sate’s Official Gazette. Currently supports the normative basis of the legal procedure known as "Justicia de Ventanilla".

c. What were the main obstacles encountered? How were they overcome? No more than 500 words
The main obstacles were: a) The absence of an administrative internal rule which entitles an official of the Finances Ministry to issue administrative revocation agreements, regarding to requirements unduly notified to taxpayers, when those requirementes demanded the fulfillment of tax obligations they had already served, even before had been notified with them. b) Some Judges of the Federal Court for Fiscal and Administrative Justice criteria, who did not admit that the mere issuance of a memorandum from the Deputy Director in charge to collect taxes, whereby that officer acknowledged that the requirement had been wrongly notified the taxpayer, could be enough to guarantee the taxpayer’s right not be required again by the tax authority. The way that the obstacles were overcome: a) First step, was through the study of the internal rules, regulations and laws, to find the solution and give legal certainty to the issuance of administrative revocation to the unfair requirements. b) Secondly, an Administrative Arrangement was issued by Puebla’s Secretary of Finance, who delegated on the Deputy Director in charge of tax collection the atribution to revoke administratively those requirements through which improperly notified to taxpayers the obligation the fulfillment of tax obligations, that the taxpayers alredy have fulfilled, before being notified with the requirement. c) With the support of the Administrative Agreement issued by the Secretary or Finances, Procuraduria Fiscal was able to issue resolutions which concluded administratively the procedures, and these resolutions were admitted by the federal judges, who recognized that the legal certainty was granted by the agreement already mentioned.

d. What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
No additional financial resources were spent for the study of the legal internal frame or the design of the program called “Justicia de Ventanilla” No external consultants were paid. The study was developed and implemented by Procuraduria Fiscal staff and the Under Secretariat in charge to collect taxes staff, both dependent on the Puebla’s Secretary of Finances. It is important tos ay, that It was a study developed "in house". The salaries of public servants involved in the process, are areas that develop advisory and task support. Then, it is possible to say, that there were not additional costs caused by this program at all.

Is the initiative sustainable and transferable?
Undoubtedly, the initiative is 100% sustainable, because the procedure has been validated by the Federal Courts to which taxpayers can look to, in case taxpayers are not satisfied with the decision issued by Procuraduria Fiscal. It is also 100% transferable, because any unit for exercising powers of supervision and collection, can adopt the model of “Justicia de Ventanilla” program, simply adapting its domestic legislation to give powers to public servants who are responsible for issuing administrative revocation agreements, regarding requirements unduly notified to taxpayers, who have been required to fulfill tax obligations that taxpayers are able to demonstrate they have already fulfilled, even before they have been reported with the requirement.

What are the impact of your initiative and the lessons learned?
Inciative Impact: a) The Local Government stands on the side of the taxpayer, giving no reason to force him to take a long and expensive procedure, when the taxpayer proves to be current regarding his tax obligations; b) The Local Government builts a new, agile and friendlier, channel of communication with the taxpayers; c) The Local Government reduces administrative burden on the taxpayer; d) The Local Government reduces internal administrative burdens, by building a flexible mechanism that allows to Procuraduría Fiscal concluding those administrative legal procedures without issuing complex resolutions; e) The Local Government reduces operational costs and, consequently, generates savings in public spending, because a resolution issued through the “Justicia de Ventanilla” program is 84.36% cheaper, than issuing a complex resolution after following the whole procedure for a regular administrative legal recourse. The lessons learned are as follow: a) That rarely, public servants voluntarily place themselves on the same side of the taxpayer or the user of public services. b) Internal processes become mechanical actions that are developed without thinking about proposing changes. c) The cost of the man power that impact processes carried into the government, are not quantified, because the assumption that will cost to no one. d) With the implementation of best practices and implementing process improvements, it is discovered that you can easily generate considerable savings in public expenditure, and allocate them to other activities with greater impact and social benefit. e) The program called “Justicia de Ventanilla” also shows that Local Government doesn’t become weak by being fair when facing the taxpayers. f) The program also shows that, even regarding to tax issues, it is possible to develop public management improvements into processes, achieving great impacts in favour of public services users. g) “Justicia de Ventanilla” shows that the relationship between Government and taxpayers doesn’t have to be cold and bureaucratic; if not, it can be also close and human.


Institution Name:		Procuraduría Fiscal de la Secretaría de Finanzas del Estado de Puebla
Institution Type:		Government Agency
Contact Person:		Sergio Penagos García
Title:		Lic.
Telephone/ Fax:		(52) 222-2297000, ext 4128
Institution's / Project's Website:		http://www.sf.pue.gob.mx
E-mail:		agendaprocu@gmail.com
Address:		Avenida 11 Oriente 2224, Tercer Piso
Postal Code:		72501
City:		Puebla
State/Province:		Puebla
Country:		Mexico

The Problem

Solution and Key Benefits

Actors and Stakeholders

(a) Strategies

(b) Implementation

(c) Overcoming Obstacles

(d) Use of Resources

Sustainability and Transferability

Lessons Learned

Contact Information