‘Customer Relationship

Management in the National

Revenue Administration’

Case study of Polish ESF project under the study

‘Progress Assessment of the ESF Support to
Public Administration’ (PAPA)

Written by prof. Stanislaw Mazur

November 2019
EUROPEAN COMMISSION
Directorate-General for Employment, Social Affairs and Inclusion
Directorate F — Investment
Unit F1: ESF and FEAD Policy and Legislation

Contact: DG EMPL F1
E-mail: EMPL-F1-UNIT@ec.europa.eu

European Commission
B-1049 Brussels

Implemented by PPMI

PPMI Group
Gedimino av. 50
LT-01110 Vilnius, Lithuania
www.ppmi.lt

Contact:
Dr Vitalis Nakrošis, thematic expert (Programme Manager at PPMI)
vitalis@ppmi.lt

Case study written by country expert Dr Stanislaw Mazur

Specific contract No VC/2018/0771 under the Multiple Framework Contract No VC/2017/0376 for the provision of
services related to the implementation of Better Regulation Guidelines
 EUROPEAN COMMISSION

‘Customer Relationship
Management in the National
Revenue Administration’

Case study of Polish ESF project under the study

‘Progress Assessment of the ESF Support to
Public Administration’ (PAPA)

Directorate-General for Employment, Social Affairs and Inclusion

2020 EN
Study ‘Progress Assessment of the ESF Support to Public Administration’ (PAPA)

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Study ‘Progress Assessment of the ESF Support to Public Administration’ (PAPA)

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Study ‘Progress Assessment of the ESF Support to Public Administration’ (PAPA)

CONTENTS

Project background ........................................................................................................ 7

Customer Relationship Management in the National Revenue Administration ........................ 8

Introduction: the context of the project......................................................................... 8

Design and execution of the ESF-funded projects ........................................................... 9
Previous ESF projects .............................................................................................. 9
Purpose of the current ESF project ...........................................................................10
Implementation of the ESF project: main activities .....................................................11
Implementation of the ESF project: main developments and challenges ........................14
Conclusion: results, lessons learnt and the role of ESF financial support for improving the
customer relationship management in NRA ...................................................................15
Main results so far ..................................................................................................15
Lessons learnt .......................................................................................................16
The role of ESF financial support ..............................................................................17
References ..................................................................................................................19

LIST OF FIGURES

Figure 1. Structure of Poland’s National Revenue Administration ......................................... 8

Figure 2. Changes in the VAT gap as a percentage of Poland’s GDP in 2006‒2017 ‒ estimates
and projections by PWC ................................................................................................. 9
Figure 3. Description of the CRM project activities ............................................................10

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Study ‘Progress Assessment of the ESF Support to Public Administration’ (PAPA)

PROJECT BACKGROUND

CUSTOMER RELATIONSHIP MANAGEMENT IN THE NATIONAL REVENUE ADMINISTRATION

Operational Programme Operational Programme Knowledge Education Development 2014-

2020
Beneficiary organisation Ministry of Finance – National Tax Administration
Target groups Staff of the National Revenue Administration
Project duration 30/09/2018 – 31/08/2021
Budget EUR 2,500,000 (ESF contribution: EUR 1,900,000)
Project manager (email Artur Gostomski, Director, Department for Large Business, Ministry
address) of Finance (artur.gostomski@mf.gov.pl)
Partners Treasury Administration Chambers, National Treasury Information,
Treasury Chambers, Customs Offices
Project/ organisation https://www.gov.pl/web/kas
website https://www.gov.pl/web/kas/zarzadzanie-relacjami-klient-kas

This case study was produced during the project ‘Progress Assessment of the ESF Support to
Public Administration’ project that was contracted by DG Employment, Social Affairs and
Inclusion of the European Commission. The purpose of this project was to present specific cases
of ESF-funded public administration reform and capacity building initiatives, as well as to show
the role of ESF financial support to public administration for accountability purposes. This report
provides a story on the project ‘Customer Relationship Management in the National
Revenue Administration’, which discusses its context and purpose; characteristics of the team
implementing it; main challenges faced and difficulties encountered during implementation; key
developments during the implementation process; results and impacts achieved; as well as
lessons learnt and the contribution of ESF.

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CUSTOMER RELATIONSHIP MANAGEMENT IN THE NATIONAL REVENUE

ADMINISTRATION

Introduction: the context of the project

This ongoing customer relationship management (CRM) project is being carried out by, and for
the benefit of, Poland’s National Revenue Administration (NRA). The NRA was established as a
new entity on 1 March 2017 to combine the previously dispersed organisations dealing with tax
collection and customs duties1.

The NRAs comprise 16 tax chambers, 400 tax offices and 16 customs and tax offices, including
45 local agencies and 144 local customs offices (see Figure 1 below). The national tax
administration is headed by the Head of NRA (Secretary of State) with two deputies. The NRA’s
staff of approximately 62,000 is comprised of approximately 51,000 employees at individual NRA
organisational units (Civil Service Corps), and approximately 11,000 officers at the Customs and
Tax Service (a uniformed formation, established by the provisions of the Civil Service Act). 2

Figure 1. Structure of Poland’s National Revenue Administration

Source: National Revenue Administration

According to Dr Kamil Mroczka (General Director, Polish Financial Supervision Authority), the
NRA was created to address dysfunctions in Poland’s management of revenue collection and

1
National Revenue Administration Act of 16 November 2016 (Journal of Laws of 2016, item 1947)
2
Report on the activities of the National Revenue Administration in 2018. Head of the National Treasury Administration.
Warsaw. March 2019.

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administration. In the wake of changes made to the organisational structure of Poland’s tax
administration after 1998, it had become an integral part of the Minister of Finance’s apparatus.
However, as Dr. Mroczka notes, it did not constitute a uniform, separate entity, but was instead
divided into three basic, often competing parts (divisions): tax, customs, and control.3 In the
opinion of Artur Gostomski (Director, Department for Large Business, Ministry of Finance), it
resulted, among other things, in the dispersion and duplication of certain tasks associated with
the process of collecting tax and customs revenues within individual services, including those
related to the control of the implementation of tax and customs obligations, and their
enforcement. Besides this fragmented structure, the existence of numerous regulations and
different standards applied by tax authorities, fiscal control authorities, and customs authorities,
also posed a significant problem. This led to significant procedural differences across the Ministry
of Finance, which affected the rights and obligations of taxpayers4.

The decision to establish the NRA stemmed from the belief that, without consolidating the tax
administration structures, it would be impossible to improve the collection of tax revenues, and
in particular, to significantly reduce the VAT gap5 (see below), or to improve the performance
of tax administration. In the latter case, the VAT gap was particularly acute. The scale of this
phenomenon is illustrated in Figure 2.

Figure 2. Changes in the VAT gap as a percentage of Poland’s GDP in 2006‒2017 ‒

estimates and projections by PWC

4,0%
Percentage of GDP

2,9% 2,8% 2,9%

3,0% 2,3% 2,4%
1,9% 2,0%
2,0% 1,5% 1,5%
1,0% 1,0%
1,0% 0,6%

0,0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

VAT gap

Source: VAT frauds ‒ the 2016 tax gap and a forecast for 2017. PWC. Available at:
https://www.pwc.pl/pl/media/2017/2017-10-19-pwc-luka-vat-2017.html

Design and execution of the ESF-funded projects

Previous ESF projects

In preparing the CRM project, the Ministry of Finance was able to draw on the experience and
acquired skills from implementing several ESF projects aimed at the modernisation of fiscal
administration, both in the previous and current programming periods. So far, the Ministry of
Finance has completed the following programmes:

 Under the Transition Facility 2005‒2005/017-488.01.03 project, “Improving the

quality of operation of tax administration units,” “Strengthening anti-corruption
measures in Poland,” among others; and Transition Facility 2005 PL 2005/IB/FI/02

3
Kulicki 2016
4
Op. cit.
5
The VAT gap is defined as the difference between the VAT receipts that should theoretically have been collected and
the amount of receipts actually collected from that VAT.

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Strengthening the Polish Customs Service, Component 1, Improvement of the

Customs Service Staffing System;
 Under the OP IE (Operational Programme Innovative Economy) in 2008‒2015 ‒ the
e-Taxes Programme, which saw the implementation of the following projects: e-
Declarations 2 (e-income tax return), e-Registration, e-Taxes and the e-Duty
Programme.

Moreover, the Ministry of Finance, within the framework of Human Capital Operational
Programme 2007 - 2013 (Priority V, Measure 5.1), cooperated with the Chancellery of the
Prime Minister in the implementation of the several projects inter alia: ‘Support for the reform
of the tax administration’; ‘Improving management standards in government administration’;
and ‘Customer as the focus of the administration’s attention’.

Currently, the Ministry of Finance, under the Operational Programme – Digital Poland for 2014-
2020, Priority Axis 2 ‘E-government and open government’, Specific objective 2 ‘High availability
and quality of public e-services’ has launched the CVP Project (Electronic Audit Activities), which
aims to streamline the processes related to handling tax obligations in the area of CIT and VAT,
as well as the implementation of verification activities and fiscal control using the Standard Audit
File for VAT (SAF-T, Polish acronym jpk), both on the part of the administration and its customer.

Purpose of the current ESF project

The aim of the project ‘Customer relationship management in the NRA’ is to improve the
operation of the NRA and specifically the back offices (individual tax offices) and to enhance the
quality of services provided to its customers, in particular by:

1. Creating a model for managing NRA customer relationships using the knowledge
resulting from the existing relations of customers with NRA units;
2. Adapting activities and services provided by NRA to customer needs as informed by
satisfaction, expectations, and behaviour surveys of particular segments of NRA
customers; and
3. Improving the competences of NRA staff in the field of customer relationship
management (description of the CRM project activities is set out below).

Figure 3. Description of the CRM project activities

3. Defining the requirements for, and

1. Conducting in-depth research on the building, an IT tool with a view to adapting it
satisfaction, expectations, and behaviours of to the specific requirements of the
individual NRA customer segments organisation, supporting research and
customer-managing relationships
The elements of the
CRM project

4. Conducting specialist training sessions and

2. Developing and making available a model workshops on the implementation and
for NRA’s customer-managed relationships application of the NRA customer-managed
relationships model
Source: created by the author.

One of the key objectives of the Operational Programme Knowledge Education Development
2014-2020, under which the project is implemented, is specific objective 4: ‘Improving quality
and monitor the provision of administrative services relevant for business’ (Priority axis PA 2:’

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Effective public policies for the labour market, economy and education’). The project is also
consistent with the ‘The Strategy for Responsible Development until 2020 (with a further
perspective until 2030)’ through the implementation of Objective III ‘The efficient state and
economic institutions for growth and social and economic inclusion’ in the area of public finance;
and ‘The Efficient State 2020 Strategy’.

The key expected benefits of the project include the following:

 increasing voluntary fulfilment of tax and customs obligations;

 increasing the number of customers who correctly fulfil their tax and customs
obligations;
 implementing a coherent service system tailored to customers’ needs throughout
the NRA;
 reducing the number of complaints and disputes;
 increasing the level of satisfaction among NRA customers;
 reducing the costs of ensuring correct compliance with tax and customs obligations.

Implementation of the ESF project: main activities

As the project commenced in September 2018, it is still being implemented, and is scheduled
for completion in August 2021. Within this timescale, the following tasks will be accomplished:

1. Conducting in-depth research on NRA customers (March 2019 – July 2019).

The project entails commissioning extensive research to determine the baseline level of
customer satisfaction with the quality of NRA services to date, but also their expectations and
behaviours. This is an essential prerequisite for building an efficient CRM system, to ensure it
can adapt to the needs of its customers and expectations of their relationship with the NRA,
and a customer-friendly office.

Quantitative and qualitative methods were used in the research process. These were conducted
on entities carrying out business activity which had previous contacts with the National Treasury
Administration (called Group 1) and intermediaries in relations with the NRA (Group 2).
Quantitative studies were carried out using the computer-assisted telephone interviewing
(CATI) technique. The questionnaire contained about 50 questions, the time for its completion
was 20‒25 minutes:

1. Group 1 completed 130 questionnaires from each voivodships, i.e. a total of 2080
questionnaires from all over Poland;

2. Group 2 completed 50 questionnaires from each voivodship, i.e. a total of 800 from
all over Poland.

The qualitative study - conducted in the form of an individual in-depth interview, which took 1‒
1.5 hours - included 24 interviews in Group 1 and 24 interviews in Group 2. The research
focused on the following issues:

 expectations of NRA regarding the quality of customer service;

 opinions on the operation of the organisation (particularly the availability of information

on the introduced improvements, transparency of information posted on websites, quality
of information provided by customer service staff, accessibility of systems to stakeholders

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and ease of access, system intuitiveness, suggestions for changes or extension of the
services offered, contact channels, degree of understanding of the existing procedures);

 views on the impact of customer relations improvements on the quality of customs and
tax services;

 strengths and weaknesses of the NRA;

 assessment of the possibilities and methods of contact with the NRA, the availability of
contact methods, and the time required to obtain information;

 evaluation of the timeliness and length of case processing, efficiency of customer service;
transparency and comprehensibility of documentation necessary for the proper discharge
of tax and customs obligations.

The research into the behaviour of NRA customers was intended to enable the institution to
develop a workable model, whereby selecting appropriate tools and applying appropriate
solutions will lead to a greater compliance by NRA customers with the applicable customs and
tax rules, which, in turn, is expected to translate into higher revenues. The above research was
executed through a contract with an external company.

2. Developing a model for managing relations with NRA customers (August 2019 – June 2021).

The research from stage 1 will inform the development of a dedicated CRM model for NRA. The
model will be developed on the basis of a classic CRM system, but adapted to the unique needs
of NRA and its customers, as it will be informed by the project’s analyses of NRA’s remit, the
findings of the baseline customer surveys, and the experience of external entities in the area
of implementing CRM principles in large organisations.

The model will cover a variety of aspects of CRM operation at NRA, such as processes, functions,
responsibilities, organisations, staff competences and tools, including IT. A properly selected
and functional model will permit the NRA to follow and record the path of contact with each and
every NRA customer. As a main element, it will allow for building relationships with customers
and creating a kind of loyalty in return, using personalised contact and knowledge of the
customer to develop solutions that are tailored to his or her behaviour (this functionality will
correspond, inter alia, to the legal nature of the client, and the structure of his or her tax
obligations). The system will enable the automation of certain activities, which will ‘free up’
staff time of NRA organisational units, thereby assisting in their better allocation elsewhere, as
required.

3. Conducting a feasibility study for an IT tool supporting research and management of relations
with NRA customers (September 2018– August 2019).

The CRM project aims to build an IT tool which provides comprehensive information on contacts
and relationships that the NRA enters into with the taxpayers, including entrepreneurs, while
also providing tools for the transfer of profiled and personalised information to tax chambers
and offices, customs chambers and offices, as well as fiscal control offices, to facilitate the
discharge of tax obligations in accordance with the applicable legal provisions.

As part of this task, the CRM IT tool shall be designed as a platform for implementing a model
of managing relations with NRA customers. Moreover, analyses shall be carried out with a view
to building a knowledge base and a feedback system for CRM purposes. These systems should
make it possible to access and transmit information matched to the needs of individual

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customer groups, as well as to obtain and analyse feedback provided by NRA customers and
employees, which will permit ongoing improvement of NRA actions aimed at a greater efficiency
of the customer service process, and a better collection of tax and customs duties in general.
NRA customers, including employees through their active feedback, will point to what works
well and what can be further improved in the taxpayer service process.

4. Determining the requirements for, and developing or purchasing, an IT tool available on the
market, including its possible adaptation to the NRA’s organisational specificity, supporting
research and management of NRA customer relations (September 2019- July 2021).

An IT tool is being prepared to support tax office staff in managing their relationships with NRA
customers. It is currently under construction, and the first functionalities will be implemented
in the third and fourth quarters of 2019.

As part of this task, the ToR will specify the functionalities of the developed CRM model, or a
CRM IT tool will be built or purchased in order to support research and CRM based on a
previously developed model. The planned IT tool should have at least the following
functionalities:

 track the history of contacts between the customer and NRA;

 automate repetitive actions previously performed manually by office staff;
 offer support for multiple communication channels for customers;
 formulate the required reports and statistics using the data stored in the system.

The final list of functionalities will be compiled in consultation with the supplier of the IT tool,
taking into account the possibility of its integration with other systems used by the Ministry of
Finance. It is planned that the IT tool will also comprise two components.

The first component will be knowledge base. Since customer satisfaction was adopted as an
objective to be pursued by the NRA in accordance with its four-year guidelines, the designed
CRM IT tool, apart from the standard elements, must include components which particularly
emphasise customer satisfaction. The main reason why the taxpayer contacts NRA is to obtain
the necessary knowledge and/or explanation concerning a particular issue or case. Customer
satisfaction depends mainly on the quality and scope of the knowledge provided. This is exactly
what the knowledge base system is to serve. The system will comprise information (or indicate
where it can be found), which, in turn, will be retrieved from the CRM system and tailored to
the profile of a given customer, using his/her contact history.

The second component will be a customer feedback system. The CRM IT tool supporting
customer relationship management will enable continuous improvement of customer relations.
The possibility to express customers’ opinions about NRA will be a unique source of information
about the public perception of actions taken towards taxpayers. The Feedback System is to be
used as a dedicated channel for customers to express their views on the quality of services
provided by NRA.

In order to ensure the accessibility of project deliverables, especially for people with disabilities,
all the contents available to staff of the Ministry of Finance and customers within the CRM
system will comply with the Regulation of the Council of Ministers of 12 April 2012 on the
National Interoperability Framework, the minimum requirements for public registers and
exchange of information in electronic form, and the minimum requirements for ICT systems
(specifically, Journal of Laws of 2016, item 113 as amended). It will also take into account the
WCAG 2.0 standard.

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The CRM system to be used by NRA will provide extra communication channels, such as mass
distribution of information via e-mail or text messages. This functionality also provides for
maintaining a database of contact data for preferred communication channels and a tool for
building and maintaining the information necessary for appropriate segmentation of
taxpayers.6

5. Conducting specialist training and workshops on managing relations with NRA customers
(January 2020- July 2021).

Specialist training courses and workshops on managing relations with NRA customers will be
organised, including, among others, CRM models and tools, designing and analysing customer
surveys. These courses will enable NRA staff to acquire the needed specialist competences at
various levels of management as necessary to implement and maintain the model of managing
relations with NRA customers.

Implementation of the ESF project: main developments and challenges

The biggest challenge related to the implementation of this project consists in selecting the type
and functionalities of the IT tool to be used in managing relations with clients of the National
Revenue Administration. This is particularly important given the hitherto unsatisfactory results
of the informatisation of the public administration in Poland. The feasibility study should indicate
the actual scope of operation of the IT tool and whether it is possible to purchase or develop it
using the Ministry’s infrastructure and existing software, taking into account the funds allocated
for this task.

One of the significant risks associated with project execution has to do with the issue of customer
database, since it constitutes the foundation for the system for managing customer relations. As
part of creating the business model for managing customer relations, the Feasibility Study will
address this issue in depth. It is possible to create an initial customer base using the various
systems currently at the disposal of the Ministry of Finance and its subordinated units; however,
taking into account the diversity of systems in which the necessary data are stored, assorted
complications may occur with data migration or compilation.

Another risk involves the functionality of the IT tools. In order for an IT tool to support managing
the customer relationship system, it must be equipped with appropriate functionalities.
Consequently, the model should take into account the existing IT tool, while offering certain
solutions and functionalities which can be realistically implemented in the designed IT system.
This will require a close cooperation with the selected Contractor, the supplier of the IT tool (if
the entity is different from the Contractor of the CRM model), persons responsible for the ICT
infrastructure and software infrastructure at the Ministry of Finance which are planned to be
used in the project, and properly specified ToR.

The success of the intervention will additionally depend on the degree and possibility to involve
specific groups of project stakeholders, which include, in particular, the following: external
customers (including entrepreneurs); internal customers; NRA units where improvements will
be implemented ‒ supervision and support offices; other NRA units.

Proper selection of employee groups responsible for carrying out tasks covered by the support
to specialist training courses and workshops and the commitment of the management of
individual offices are also crucial. Another risk factor which may affect the execution of the

6
The categorisation of the taxpayer population depending on their turnover, revenues, employment, according to which
the tax administration will provide comprehensive services to the taxpayer.

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project concerns the risk of protracted public procurement procedures. Attention should also be
paid to internal procedures ‒ the long and time-consuming purchasing process and low quality
of services provided by the contractors.

During the project execution to date, these problems have been addressed by:

 building a good rapport and effective communication mechanisms between the project
team and the team of specialists involved in designing the IT tool aimed at handling the
model of managing relationships with customers;
 conducting a reliable analysis of customer databases and creating an initial customer
base, which will be successively expanded;
 close cooperation with the contractor who develops the model for managing the
relationships with NRA customers, the supplier of the appropriate IT tool, and individuals
responsible for the ICT infrastructure and software;
 improving the effectiveness of the public procurement process by committing appropriate
human resources to the responsible organisational unit, to improve the quality of
descriptions contained in the ToR, and selecting persons from within the organisation who
are competent to assess the services purchased and who could thus offer substantive
support in the process of implementing the solutions agreed-upon.

According to Kamil Mroczka, the critical factors for the success of this project include:

 the experience and high competences of the project team;

 the universally shared belief that the project is necessary to combat tax fraud across the
NRA;
 the Ministry of Finance’s considerable potential for organisational learning, as
demonstrated by its practice of analysing past projects for lessons learned;
 the scope of activities in the project being founded on appropriately-defined needs;
 flexibility in its execution; and
 the support of the project’s management for activities undertaken within its framework
(chair of the Steering Committee and the Project Sponsor).

The project is coordinated by the Project Manager on an ongoing basis. The Project Manager
reports on a daily basis to the Chairman of the Steering Committee on progress and/or problems.
Official meetings of the Steering Committee are organised at least once a month and its members
are acquainted with the progress of project work, risks and issues which need to be addressed
as they emerge. On this basis, decisions are made on the manner of execution and scope of the
project. According to Artur Gostomski, this method of project management complies with
professional standards and facilitates its effective implementation.

Conclusion: results, lessons learnt and the role of ESF financial support for
improving the customer relationship management in NRA

Main results so far

As the project is ongoing and is scheduled for completion in August 2021, it is too early to assess
the results. Nevertheless, its first deliverables have already materialised, i.e.: a) an in-depth
research on NRA customers’ satisfaction, expectations and behaviours has been completed; b)
an outline of the model for managing relations with NRA customers will be prepared; and c) a
feasibility study for an IT tool supporting research and management of relations with NRA
customers (CRM) has been concluded. The decisions related to the IT tool will be made by the

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end of July 2021. These activities will culminate in specialist training sessions and workshops in
the field of managing relations with customers of NRA.

By the end of the project’s implementation, it is intended that 1,302 staff of tax administration
units will have received training support and have improved their competences to manage
customer relations, within 434 administration units that will be implementing the new CRM.

According to those involved in the project, what has already been achieved is a good signal for
the future. In their view, the implementation of the project offers a genuine prospect for
improving the effectiveness/efficiency of NRA activities and the overall image of the tax
administration in the eyes of the public. It appears that such optimism derives from the
significant and measurable effects of the activities carried out by the NRA so far and the resultant
positive effects, including the increased collection of public levies and a significant reduction in
the VAT gap.7 As regards combating VAT fraud, one of the most important changes was the
introduction of the obligation for taxpayers to submit monthly information on their VAT purchases
and sales in the form of a Standard Audit File for VAT (JPK _VAT) and the obligation to submit,
at the request of the tax authority, all or parts of the tax books and accounting records. In terms
of improving taxpayers' service, these activities include: reducing the number of inspections and
replacing them with other forms of verification of tax settlements, e.g. checking activities;
increasing the role of preventive activities; reducing bureaucratic burdens on taxpayers;
introducing Twój e-PIT (Your e-PIT) service (out of 16 million PIT returns submitted
electronically, nearly seven million were submitted via this functionality). Rafał Sułkowski,
Chairman of the Board, emphasised the practical positive effects of these activities for taxpayers.

Both NRA management and its staff involved in the project believe in the legitimacy and the
possibility to introduce significant positive changes in the operation of the tax administration.
Kamil Mroczka and Artur Gostomski were particularly optimistic in this respect.

Lessons learnt

The current state of project allows for the identification of several lessons learned. One of them
is the importance of the project team members’ experience for the effectiveness of project
execution owing to their prior participation in projects co-financed by the ESF. This enabled the
team members to acquire methodological skills in project programming, their operationalisation
and effective/efficient implementation, as well as contributed to strengthening the culture of
cooperation, critical thinking, and capacity for self-reflection. It is also worth mentioning the fact
that the previous experience of the project team members was exploited to create a network of
professional relations with experts and individuals responsible for the execution of projects of
this kind in other administration units. In the opinions of Sabina Kołodziej and Kinga Burakowska,
this experience is a priceless resource. As Ms Burakowska noted, ‘Cooperation based on trust
resulting from previous jointly implemented projects enables flexible action, limiting the burden
of various bureaucratic conditions related to the functioning of public administration.’ Another
observation arising from the implementation of this project is the importance of the commitment
and determination of the project team resulting from its competences and high expectations on
the part of both NRA management and the public at large. In other words, as Katarzyna Żabicka
opines, the project is perceived by NRA management as justified and necessary and this message
being regularly communicated to project team members.

7
Mr Walczak, Head of the National Revenue Administration, In the newspaper interview, claimed that the VAT gap in
2015 was around 24% of potential revenues. In 2018, however, it was estimated at 12.5%.
https://www.pap.pl/aktualnosci/news%2C473382%2Cszef-kas-zapowiada-rozwoj-systemu-monitorowania-ruchu-
pojazdow

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Another observation resulting from the implementation of this project concerns the appropriate
design of its objectives, tasks, and the correct definition of its implementation mechanisms. In
Katarzyna Żabicka’s view, these factors significantly facilitated the accomplishment of project
objectives and so far, ensured its smooth progress. Furthermore, the project points to the
importance of the understanding by the project team members of the significance of
organisational learning.

The analysis of project execution so far also leads to two additional observations. The first
concerns the complexity of the beneficiary’s internal procedures, which may result in extending
the time necessary for the completion of individual stages of the project and the need for the
Project Coordinator to have a strong support on the part of the political management of the
organisation. The importance of the latter was emphasised by Kamil Mroczka: ‘This project is
strongly supported by the Minister of Finance and his deputies due to its importance for the
quality of NRA operations. This makes its implementation much easier.’ The other observation
refers to the necessity to develop practicable mechanisms for securing external expert support
for project work.

The role of ESF financial support

Without ESF funding, the implementation of this project would be very difficult. Apart from the
financial resources, equally important was the ability to utilise the achievements of projects
pursued under the ESF framework in this project, including management, monitoring, and
reporting procedures. As a result, the project proceeds smoothly and efficiently. As Artur
Gostomski noted, ‘While implementing ESF projects, we learned to operate in a task-based
formula and have gained valuable experience in project management, which now makes it much
easier for us to implement the tasks we are facing.’

Applying for external funding for measures aimed at improving management systems requires
a clear definition of beneficiary needs. Very often it is also associated with recognising the needs
which have not been diagnosed before. It offers an important stimulus for organisational
improvement. Projects, such as the one discussed here, usually require significant financial
outlays, which are usually not readily available, therefore they constitute a perfect complement
to the organisation’s efforts aimed at improving its management rules and mechanisms. Pre-
defined and agreed-upon frameworks for project funding also translates into an appropriate
execution of tasks within the time allotted ‒ the temptation to postpone them is much weaker,
and therefore it can be said that the external framework forces the beneficiary to develop. Artur
Gostomski put it aptly, ‘The agreement made, if it is considered rational and it is precisely
expressed in the form of a project, is simply implemented. This is how public administration
works.’

The establishment of the NRA has significantly improved the collectability of public levies and,
what is particularly important, limited the opportunities for tax fraud, including the VAT gap.
Efforts to curtail the activities of the so-called VAT mafias contribute to developing the state’s
sense of causality and eliminating economic pathologies, and on the other, it delivers funds to
the state budget and improving its condition. Extensive use of modern innovative and analytical
technologies in NRA operations demonstrates its capacity and contributes to the transformation
of Poland’s tax administration towards e-administration.8 Thus, this project constitutes an
important part of wide-ranging efforts to reform tax administration in Poland and should be seen

8
It should be noted that as tax collection, including VAT, improves, a significant number of new requirements aimed at
increasing tax collection make compliance more burdensome. These measures include the obligation of the monthly
reporting of VAT returns, compulsory reporting of standard audit files by all entities, differentiating sources of profits in
corporate income tax and, in the area of the VAT, an extension of the list of goods and services subject to a reverse
charge mechanism [2019 European Semester].

17
Study ‘Progress Assessment of the ESF Support to Public Administration’ (PAPA)

as such. In Dr. Mroczka’s view, the next step in the improvement of the Polish tax administration
within the framework of this project will involve the preparation and implementation of a new
model of managing relations with NRA customers involving the use of modern analytical and
communication technologies.

Rafał Sułkowski, reflecting on further activities aimed at improving tax administration, noted
that ‘a skilful combination of analytical tools, rooted in research on artificial intelligence with
modern communication technologies, is the key to building a better, more effective and at the
same time more taxpayer-friendly tax administration.’

18
Study ‘Progress Assessment of the ESF Support to Public Administration’ (PAPA)

References

Commission staff working document, 2019 European Semester: Assessment of progress on

structural reforms, prevention and correction of macroeconomic imbalances, and results of in-
depth reviews under Regulation (EU) No 1176/2011, COM(2019) 150 final, Country Report
Poland 2019.

Act of 16 November 2016 - Provisions introducing the Act on the National Tax Administration
(Journal of Laws of 2016, item 1948).

Act of 16 November 2016 on the National Tax Administration (Journal of Laws of 2016, item
1947).

Dzwonkowski H., Kulicki J. (eds.) (2016), Dilemma of reforms of the fiscal system in Poland,
Sejm Publishing House, Warsaw.

Kulicki J. (2016), ‘The concept of the National Tax Administration in the light of the problems of
administration of public levies in Poland’, Analysis and Study, No. 2(2).

Multi-annual financial plan of the State 2018-2021 (2018), Warsaw.

Head of the National Treasury Administration (2019), Report on the activities of the National
Treasury Administration in 2018, March 2019, Warsaw.

Resolution No. 8 of the Council of Ministers of 14 February 2017 on adopting the Strategy for
Responsible Development until 2020.

The Council of Ministers (2017), Strategy for Responsible Development, Warsaw.

The direction of action and development of the National Tax Administration for 2017-2020.
Ordinance of the Minister of Development and Finance of 25 July 2017.

Toro J., Jensen A., Thackray M., Kidd M., Russell B. (2015), Poland. Tax Administration -
Modernization Challenges and Strategic Priorities, MFW.

VAT fraud - tax gap in 2016 and forecast for 2017. Available at:
https://www.pwc.pl/pl/media/2017/2017-10-19-pwc-luka-vat-2017.html.

Walczak P. (press interview), Available at:

https://www.pap.pl/aktualnosci/news%2C473382%2Cszef-kas-zapowiada-rozwoj-systemu-
monitorowania-ruchu-pojazdow.

19
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