- Application of ICT in taxation: iTax, samba system

iTAX is a modern computer-based assessment and collection software used by (local) governments. It is a computing and accounting system for state revenues (levies, taxes) which stores all relevant (credit and debit) data in individual accounts in a data base, and thus helps monitor and control all tax transactions. iTAX provides a convenient and efficient way to improve revenue collection, transparency in fiscal administration and management of local and national tax authorities. In conjunction with a personalized taxpayer identification number, the tax authority using iTAX can automate most of the levying processes and minimize the scope for tax fraud.

Technically, iTAX is a completely integrated modular system for taxation with an open source database, which can handle all types of taxes. iTAX supports the revenue authority in registration, assessment, collection, accounting, debt management, auditing, tax monitoring, and reporting.

Introducing an IT-based tax administration and information system

iTAX is a comprehensive package, but any system needs customization and adjustments. This chapter describes what it takes to make iTAX successful and sustainable.

Making iTAX work includes those processes that establish the capabilities for change management, the necessary capacity development, and corresponding institutional reforms.

The actual approach to introducing a system like iTAX has to be based on the situation at hand. Therefore, any effort to “make iTAX work“has to begin with an individual project design

iTAX can be implemented as a pilot project, starting first in a special region/pro-

vince or only for some specific taxes. It may also be tested first in an institutionalpilot project, such as a Large Taxpayer Department. Depending on the IT infra- structure and the IT literacy of operators, piloting can be done within a time frame of about three months. Since the basic functionality of iTAX has already been developed, future implementations will mainly be limited to the customization ofthe software. This might further speed up the process.

The introduction of an IT solution in general and of iTAX in particular, as well as any related institutional and administrative reform, requires foremost political will.

All relevant stakeholders have to be involved and should have an actual say in the process.