New tax system launch plagued with technical issues

The government recently launched the Standard Integrated Government Tax Administration System (SIGTAS) 3.0 to modernise tax collection, but technical issues during the rollout have caused frustration among residents and businesses.

SIGTAS 3.0 was designed to automate tax processes, including e-registration, e-filing, and e-payments, to improve efficiency and decision-making.

Inland Revenue Department (IRD) Commissioner Karen Smith-Aaron told the Standing Finance Committee late last year that the launch included partial implementation of vehicle tax and hotel accommodation tax, both of which were successful. However, other modules like stamp duty, property, and payroll tax faced issues. These problems included difficulties launching the payment gateway and discrepancies between the Inland Revenue system and the Treasury Department.

According to Smith-Aaron, while some transactions went through, most failed, and efforts to resolve these issues have been ongoing since October. She further noted that the system works for general tax submissions, but larger taxpayers have encountered problems with submitting their taxes. The IRD has had to handle these cases manually. Additionally, the property tax module was not functioning as expected, as it lacked the manpower to assess and record property taxes.

Not designed for property tax

The Commissioner said SIGTAS was not designed for property tax and noted that the solution was more of an online payment system than a comprehensive property tax database. This situation has created delays and frustrations, especially for taxpayers attempting to pay their property taxes online. She called for a dedicated property tax database managed by the Land Registry to improve the process.

Premier Dr Natalio Wheatley pointed out that the system is web-based, allowing access from any device with an internet connection, and boasts improved reporting and analytics for more accurate and timely tax performance insights.

Despite the advancements, users have reported difficulties accessing the online platform, citing frequent downtimes and slow processing speeds. Some businesses have expressed concerns over the system’s complexity, noting that transitioning from manual to digital processes has been challenging without adequate support and training.

Efforts to fix issues

Smith-Aaron assured the public that efforts are underway to address them promptly.  Smith-Aaron stressed the department’s commitment to ensuring a smooth transition to the new system. She said the IRD is committed to assessing the taxes, licences and fees due to the government while applying the tax laws fairly and in an atmosphere of mutual respect.

To facilitate the transition, the IRD has mandated that all residents of employable age register for the new system. Individuals must provide a valid passport or driver’s licence, their Social Security card, and an email address to complete the registration process. The government has established kiosks at the IRD offices to assist those without internet access or who are not computer literate. Additionally, online registration is available at www.eregisterfortax.gov.vg.