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SKAT leads the way with eIncome

With eIncome, SKAT (the Danish tax authorities) has acquired a system that makes daily life easier for companies, citizens and the civil service in terms of payroll information. KMD helped to make the data accessible and usable.

In recent years SKAT has worked hard to implement eIncome, which is a register that generally speaking contains the same income information that is provided on employees’ salary slips. However, the massive amount of data only became easily accessible after KMD had developed a module for displaying it.

The register also contains income information concerning the State Education Fund, pensions, social payments such as cash benefit, etc. The information is notified once only at one point and ensures that no one has to provide the same information on more than one occasion to different public institutions.

Snapshot gives security
Or in the words of Richard Hanlov, Deputy Director of SKAT: “eIncome is a fantastic system that makes it possible at any time to get an accurate picture of the citizens’ current salary income. In the past you had to rely on annual data, which could obviously be rather out of date. Now just pressing one button gives a current picture of the salary income, which ensures better control and accuracy in connection with, for example, the payment of government benefits."

Marriage for better or worse
In 2007 KMD entered into an agreement with SKAT to construct a module for handling data displays from the eIncome database. The agreement is part of a large framework agreement in which CSC and IBM are also big players. A common understanding between SKAT and KMD of the complexity of the task was particularly important:

“We looked each other in the eyes and focused on the rules for how our cooperation should proceed. Both parties were aware that the contract contained some blank spots on the map due to a number of points that were unclarified when the contract was drawn up – but pretty much like in a marriage we resolved that this is what we wanted. This meant that the challenges were continually resolved through common dedication and a solution-oriented approach,” says Michael Lundstrøm, Area Manager for KMD.

For SKAT Richard Hanlov comments: “It’s always difficult when a project involves three large suppliers as in this case. At the same time, we were developing a system while we were using it – and this inevitably led to a fair amount of firefighting. But overall I have to say I’m satisfied with the cooperation and the spirit in which it was carried out.”

Interest from abroad
SKAT already reports that eIncome has contributed to a higher level of correct annual statements. But the ambitions do not stop here. “We actually have the largest data universe in the public sector, and the prospects for involving companies and citizens to an even greater extent are nothing short of enormous. We're getting a lot of political backing, and we're receiving inquiries from abroad from people who want to look over our shoulder and learn from us. We're a driving force in this area, and we’re proud of that.”

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KMD's roles in relation to eIncome
_Display eIncome data via web services

_Developed KMD eIncome, which reads the displayed eIncome data and presents it in a business context to the local governments

_KMD's various payroll systems order eTaxcards via SKAT's eIncome solution and are thus responsible for correct tax deduction

_The same payroll systems report to the eIncome system monthly