IRS AUTOMATION PROJECT

Background
There is several reasons for the automation of the IRS.  Tax administrations the world over are taking advantage of technology to modernize their operations.  The Internal Revenue Service cannot afford to be an exception.  It is important for the Service to communicate with other MDAs and any other external entities as the need arises.  Furthermore it is equally important for internal processes to be automated to give quicker access to information, for the information to be accurate and to enable the same information to be presented in different ways for different audiences.

Staffs have been more efficient since this automation took off, and now have the opportunity to be creative.

Automation has made it possible to present the taxpayer with alternate and more convenient ways of payment and submission of Returns.  It has also presented the opportunity to educate and inform the taxpayer in the compliance of the Tax Laws which ultimately will result in the collection of more revenue.

The Automation of IRS took place in 3 phases.

Phase 1
The first phase has been funded by the German Development Fund (GTZ).  This comprised of building Local Area Network connectivity in 6 pilot districts namely Osu, Kinbu, Achimota, Legon, Tema Main and Agbogbloshie.  This phase also included the funding for software to be developed in house to automate the Registration, Payment and Vehicle Income Tax processes.  Separate software has also been developed for PAYE and Withholding Tax.  This phase is now complete.

Improvements

•     Taxpayer information available electronically

•     Payments are processed quickly and are more accurate

•     As a result of the Local Area Network more than several people can access the software at the same time.

•     Withholding and PAYE calculations are more accurate

•     Waiting time has been drastically reduced for the purchase of Vehicle Tax Stickers

Phase 2
Phase 2 is intended to extend the Local Area Network installations of phase 1 to all the other districts in Greater Accra.  In addition, a Wide Area Network will also be implemented to link all the districts together.  Also included in phase 2 is the development of a new Integrated Tax Management System.  This software will include Registration, Assessment, Collection and Payments.  It will also ultimately include Withholding tax, Vehicle Income Tax, and PAYE and also deal with all other taxes collected by the IRS.

 The Data Centre has been constructed at the Head Office to be the control centre for the whole IT infrastructure.  A Disaster Recovery Centre which is about 98% complete has also been constructed at Kumasi.  A local IT company (Sambus Co Ltd) has been contracted to deliver this phase.

Advantages

•    Greater Accra represents about 80% of the total collection nationwide so a significant percentage on our activities has been automated.

•    The integrated software will link the activities of the different departments.  Information will be available to all instantly

•    Communication has been faster between districts and Head office over the past months

•  Because Greater Accra is now connected on line, taxpayers within the Greater Accra region has and are benefiting from our online registration; online file returns and payments are  been  made at any district within Greater Accra.

•   Minimal disruptions because of the Disaster Recovery Centre.  Data will be replicated at Kumasi constantly so in case of downtime in Accra, the system will switch to Kumasi with minimal loss of service.

•   Documents are shared

•   Internal email

•   Creation of an internal website

Status

•   Data Centre construction is now  100% complete

•   Disaster Recovery Centre at Kumasi is 98% complete

•   Software development of the Integrated Tax Management System is about 70% complete

Phase 3
Phase 3 forms part of an overall government initiative to facilitate communication between MDAs and particularly to integrate the activities and procedures of the revenue generating agencies, i.e. IRS, Registrar Generals, RAGB and VAT and to a lesser extent CEPS, DVLA.  The aim is to share information and resources.  So for example IRS, RGD and VAT will use the same software.  We can easily trace all the activities of a taxpayer through his dealings with the revenue agencies.

This phase is being implemented by GICTeD (Ghana Information and Communication Technology Directorate) for the Ministry of Communication.  The project will be awarded to a contractor under a Private Public Partnership agreement.  As at February 2009, preparations are being made to resubmit revised tender documents to bidders.  The first bidding process, which was completed in December 2009, failed to produce a winning bid.

Advantages

•   Easier for the public to deal with multiple MDAs

•   Cut costs because of shared resources

•   Present a consistent approach to the taxpayer