Reengineering the business process implies rejection of the former, steady management and performance of the business as well as the introduction of radical changes in order to increase efficiency in business operations. Reengineering is a strategic method that implies orientation to processes, buyers, human and intellectual capital, a quick response to changes and the way of achieving competitive advantage. In modern business conditions, reengineering becomes a necessity, especially because of the rapid development of information and communication technologies. Some of the major reengineering goals are cost reduction, quality improvement, increased business process speeds, and increased business scope. The term that is often mentioned as part of reengineering is a learning organization. It is an organization that emphasizes human capital as a basis for its competitive advantage and its motivation and commitment to the organization through continuous learning. This learning is often associated with practice, experimentation and testing, open spirit to change, examining a different way of thinking and doing business. It is clear from the above that the learning organization can, in part, be the change of reengineering. This paper describes the reengineering of the public institution, the Tax Administration of the Republic of Croatia and all the advantages it has brought to the Tax Administration itself and its users.