Investigating the impact of outsourcing the processes of the Tax Administration on its performance

Academic Thesis for receiving the master's degree "M.A."

Commercial Management Orientation

Abstract:

Outsourcing is finding new service providers and new methods that can be reliably entrusted with the provision of materials, goods, components and services. In fact, in delegating or outsourcing, the organization benefits from the knowledge, experience, and creativity of new service providers that it has not used before. This research was conducted in order to investigate the impact of outsourcing the processes of the tax affairs organization on its performance according to a case study of the excise tax in Kermanshah province in the first half of 2013. The present research is practical in terms of its purpose and it is a descriptive research of a survey type in terms of the method of data collection. This research is practical because its findings are used in solving the problems of the tax affairs organization. And they are descriptive because the variables are examined according to the existing situation and the research variables are not manipulated. The statistical population of this research is taxpayers and employees of the tax affairs organization of Kermanshah. The designed questionnaires were distributed among these groups and the necessary information was collected and the opinions of experts and tax experts were collected and integrated. The results of this research show that the independent variable of outsourcing the car tax process has a 71% impact, preliminary planning has a 25% impact, strategic analysis has a 49% impact, cost analysis has a 22% impact, negotiations has a 28% impact, and post-contract requirements have a 27% impact on the dependent variable. They have organizational performance. It was also observed that all these relationships are direct and positive. According to the obtained results, it can be acknowledged that the outsourcing of food tax in Kermanshah province has had a positive and significant effect on the performance of the Kermanshah Tax Affairs Organization.

Key words: Outsourcing, organization of tax affairs, organizational performance

Chapter 1

Generalities

1 Introduction

Seriously paying attention to the concept of productivity and optimal use of the facilities and resources of organizations is a clear and obvious thing and for Increasing productivity, reviewing the organization's methods, and revising them if necessary, are unavoidable. From a scientific point of view, there are several methods that managers can use in choosing appropriate solutions. Some of the sources are helpful from them. Organizations all over the world are looking for techniques and methods to maintain and develop their competitive advantages. The use of modern service management methods, including outsourcing, in which a part of the organization's activities are handed over to individuals or external organizations, is one of the effective methods that has been noticed in the last two decades. (Pourmalem, 1389: 3) Today, there have been many changes in the administration of organizations and the structure of organizations has caused changes in management methods. At this time, in order to achieve high effectiveness and efficiency, organizations are forced to adapt to the existing conditions and environment. New organizations perform their main activities by paying attention to their key forces, and while analyzing, activities that seem to be able to be performed outside the organization It entrusts expert forces outside the organization, in the hope that contractors and forces outside the organization can do it better and at a lower cost, due to the relevant expertise, from an economic point of view. Production (facility workers, equipment, technology and other equipment), decision-making authority (responsibility and right to decide on activities) is also delegated in most cases. Peter Drucker says in relation to outsourcing and its effects: Such a thing is actually a fundamental change in the structure of global organizations. This means that it is no longer necessary for large organizations to become organizations that employ large numbers of people. Such organizations become organizations that achieve high incomes and financial productivity, because they only focus on the activities for which they have been assigned. They do things that are exactly related to the goals of their organizations.They know the work well and are familiar with its details. The rest of the service activities or such organizations are left to external providers. (Alwani and Ashrafzadeh, 2017: 17)

In recent years, outsourcing as one of the tools for developing organizations and improving productivity in the form of downsizing has been noticed by the managers and officials of organizations, and various forms have been implemented. In the review of the work done related to outsourcing, it is clear that this issue is mainly in the production sector and various industries, such as automotive industries, clothing, information technology, food industries, etc. It has been used and is expanding. But in the service sector and government organizations, where the factor of competitiveness is not considered, it has been given less attention.

Due to the growth of the service sector and the importance of issues such as efficiency, quality, cost and added value, respect for the client that has been raised in government organizations, the outsourcing of activities in government organizations and the service sector has also received attention and has been placed in the work priorities of the organizations.

According to the issue that was approved in the continuation of the review process of the budget bill 92, paragraph 50, the tax affairs organization is allowed to delegate some of its activities to the non-governmental sector, with the exception of the detection of tax charges, tax proceedings and executive operations of tax collection, in order to facilitate the tax affairs of taxpayers. The way of delegating and performing tasks is according to the instructions prepared by the country's tax affairs organization and approved by the minister of economic affairs and finance. Tax outsourcing is the transfer of a part of the tax processes to the non-governmental sector, which is one of the axes of the comprehensive tax plan. Currently, car tax is outsourced in Iran. In this research, the outsourcing of car tax, which has been entrusted to the government counter offices, and its impact on the performance of the organization, as well as the factors that affect a successful outsourcing, have been investigated. Preliminaries, determining the required level of service quality, determining the customer's expectations of the service, standardization of the process, quality coordination of the university's infrastructure, obtaining the support of the top management for the conclusion of the contract. The more successful implementation of outsourcing improves the organization's activities. Choosing the right processes for outsourcing, especially in organizations that have many social and financial sensitivities, is one of the important issues of outsourcing. Among the reasons for delegating work to forces outside the organization can be the need for specialization and innovation, achieving better management, focusing strategy, improving flexibility, improving performance, and reducing costs. Commercial and industrial managers, while they can use the outsourcing strategy, face various conceptual issues in practice. Both managers and consultants are trying to identify these issues so that they can use outsourcing in a more effective way. While there is considerable academic research on the use of outsourcing in product manufacturing activities, unfortunately there are limited practical studies in the field of service outsourcing. Having the necessary features can be a useful tool for saving money, increasing income, improving quality, freeing up resources, and increasing customer satisfaction. As this tool has shown its effectiveness in many companies, it has also faced failures in achieving its goals in some cases. Increase competitiveness or productivity. Today, managers have realized that they should give up fruitless undertakings that are not their real activities, reduce the role of self-control and increase the roles of negotiator, support, analyst, solution and helper.