INTEGRATED TAX ADMINISTRATION SYSTEM
Overview of the solution
Integrated Tax Administration System (ITAS) has been developed by SINAM and is intended for automating the main functions of the Tax Authorities. Integrated Tax Administration System (ITAS) covers main business processes on registration of physical persons and legal entities, automation of taxpayers’ personal accounts and internal reporting, collection of tax arrears, processing of payment documents and declarations, risk analysis and audit planning, Call-Centre, integration with third-party agencies, receiving analytical reports for decision-making, etc.
Main web application of ITAS
Main ITAS Database
Official web site
DB of Web app
Oracle BI App
Oracle BI App
Web app for data integration with 3rd party organizations
E-Declaration web application
DB of E-Declaration App
ITAS Support App
Web Application ITAS system knowledge base
ITAS Support DB
DB of ITAS Support App
System basic features:
- Centralized system with Web-interface
- Process approach: configuration and business-process monitoring
- Extended parameter setting: reference data, incoming & outcoming forms, processes, system’s working conditions
- Extended audit: user activities’ logging
- Integrated database and user support system
- Integrated reporting system
- Multilingual support
Advantages of the system:
- Coverage of all main business processes of tax administration;
- Flexible system configuration:
- Customizable business process
- Customizable input forms
- Configuration of risk assessment criteria
- On-site maintenance of system not required owing to the application of Web-based technologies
- Support for management in decision-making through analytical reporting
- Integration with third-party agencies and provision of various web-based services to businesses and taxpayers.
- Built-in sub-systems for administration and security, including the functions for users and rights management, and provision for logging of user activities
- Support for multi-language interface, etc.
Modules of the system:
This module provides functions for registration / de-registration of taxpayers, their parameters and payable taxes.
Upon registration, taxpayer is assigned with a unique TIN (Taxpayer Identification Number) and the registration form is filled in with complete information about the taxpayer, including address details and data about the founders and accounts. In addition, the system has functions for changing the taxpayer’s details, as well as setting the liquidation sign and the end date of taxpayer’s activity.
2. Return processing. Income accounting and return processing
Income accounting and return processing module is designed to provide tax income and assessment and taxpayers’ account forms management. Module has the following functions:
- Processing of packages - forming of the tax return packages for their future processing;
- Processing of tax returns – income input: tax accounting and tax returns;
- Processing of the invoices – income input and overpaid tax account and refund management;
- Account forms management
3. Payment processing
When payment documents are processed, an interaction takes place with the Central Treasury (hereinafter CT), the payment documents are received from here. The system has the function for auto-reconciliation of payments with the central treasury, and review of the reconciliation report indicating the amount of deviation by date, period, and type of tax.
The system provides for entering the payment documents of unregistered taxpayers, and in that case a reserved or arbitrary set of characters is displayed in the TIN field. In case the specified TIN is registered, the payment documents get automatically linked to the taxpayer’s account. Moreover, when the TIN is identified, the payment document can be edited and automatically linked to the concerned taxpayer's account.
4. Collection and Declaration control
The “Collection” module is intended for ensuring the enforced collection of tax dues and monitoring the filing of returns. To accomplish this, the module contains the following features:
- Recovery of tax arrears;
- Deferral / installment payment of tax arrears;
- Write-off of tax arrears;
- Case-file of taxpayers and individuals;
- Monitoring the interruption in submission of returns;
- Monitoring the non-submission of returns.
5. Revenue accounting
The Revenue accounting (RA) reflects all transactions of taxpayers, such as accruals, receipts, initial balance and etc. Similarly, automatic calculation of penalties, tax sanctions and tax percent is done in the RA module.
In RA module, one can view transaction details, penalty calculation details, sanction calculation details and percent calculation details.
The account card is maintained in accordance with the Customer accounting rules:
- An account card is generated for the taxpayer in each separate district for each type of taxes in one calendar year;
- Payment transactions are not linked to declarations/debt, and debt settlement transactions are done as per the following rules: for debt calculation first, the tax settlement is done followed by that of tax percent and tax penalty;
- In case of update transactions, transactions are recalculated based on the updated amount.
- Penalty calculates automatically for each calendar day for the unpaid part of each debt. There is also an option to limit total calculated penalty for each debt.
6. Risk Analysis
System provides automatic analytics and identification of taxpayers with high risks of tax evasion in accordance to the predefined risk criteria. The result of risk analysis is a list of risky taxpayers based on customizable criteria, which can be used for different processes such as: Field Audit, Spot-Check Inspection and In-House Audit. Users can also define criteria by subset of taxpayers or for all taxpayers. For example, there are 4 subsets of taxpayers in audit field: VAT payers, non-VAT payers, individuals and government bodies.
User can configure necessary process as well as choose whether to use or not to use a particular risk for calculation, and also configure different threshold values, risk weights and some tolerance in risk calculation. System allows adding and modifying criteria through user interface. Criteria could use different data sources: internal data from Tax Information System, or external data, such as Customs, State Register, etc.
E-Audit System supports following audit types:
Field audit – checking the activities for a completed period followed by a visit to the taxpayer;
In-house audit - based on comparing the different returns between each other or with the data obtained from other external sources to eliminate the possibility of tax evasion.
A method of mathematical analysis based on the law of anomalous numbers (Benford's Law), which allows to identify rigged operation and common errors automatically, without additional human resources is used in the system.
This module is designed for dealing with taxpayers’ complaints for review by the tax authority or Court.
In general, the process consists of the following steps:
- Registering complaint, assigning unique number and deadline for appeal processing;
- Linking the complaint to audit assessment and entering amounts under appeal.
- Review of the complaint: the appointment of an executive, the subsequent generation of documents in accordance with process settings; the process is finished with a report on process results.
During the process, the process can be suspended and resumed, and the related complaints and processes can be linked.
9. Correspondence and Case tracking
This module is designed to maintain the records of incoming and outgoing correspondence of tax authority. This provides control over meeting deadlines in the correspondences of tax authority with external organizations and taxpayers.
The parameters of input forms are stored in a single JSON format field. This avoids the creation of a large number of tables for each form of the document, and also solves the problem of making numerous changes in input documents during their approval and execution.
The system has embedded case tracking system which provides mechanism of case management, document management and workflow functionality.
This Module helps to track the processes inside the system modules.
Module “Dislocation” provides mechanism of associating assets with owners (taxpayers), describing asset’s properties and tracking changes in ownership and properties.
The system provides assigning a unique identification number to the property/asset and tracking all changes in assets properties or ownership. All properties are linked to certain type of asset.Maintaining of asset records is provided by adding new record.
11. Reports and Data Warehouse
Under the project, a data warehouse has been built, and a system has been developed for internal reporting using data extracted from different sources.
Internal reporting system is implemented using Oracle BI tools, which allows to create any vital report, both for approved forms, and for analysis and supporting of decision.
12. Tax Payer Services
Module provides a process of working with strict reporting forms: patents, licenses, VAT registration stamps and excise stamps.
The main features of the module are as follows:
- Analysis and control over the need for strict reporting forms for each territorial tax authority;
- Arrival of forms in the authorized tax authority;
- Handing over of package of forms to the territorial tax authorities;
- Distribution of forms to authorized employees in the territorial tax authority;
- Issuance of forms to taxpayer / working with forms;
- Search of forms.
This module includes the following features:
- Management of general system settings
- Logging of user activities
- User and rights management
- Logging of external interactions
- Saving historical data
- Working with dictionaries
System provides FormGenerationEngine which creates web-forms based on spreadsheet templates. Templates could include input form design, data base's fields mapping and any rules for input and processing data.
Templates could include input form design, rules for mapping interface fields with database objects and any rules for input, validate and processing of data.
15. 3rd Party integration
3rd Party integration. To interact with external systems implemented a number of web-services that allow automatic exchange of information. Oracle BI also automatically creates web services for reports. To migrate, validate and load data from other systems, different files into the system ETL tool also available.
Registration services. In the system developed special web service which shares registration module functionality with other program units (other programs, organizations etc.) this web service allows fully integrate the system with “Single window” system. Web service supports new registration (with generation of new tin number), change registration, liquidation of tax payers. This web service uses business rules from registration module.ETL tool. Oracle Data Integrator is offered as ETL tool. Oracle Data Integrator Enterprise Edition 12c delivers high-performance data movement and transformation among enterprise platforms with its open and integrated E-LT architecture. With the emergence of new data trends and the inherent benefits to organizational agility, Oracle Data Integrator Enterprise Edition is critical to leveraging initiatives, such as Big Data as well as Data Warehousing, Service Oriented Architecture and Business Intelligence. With an easy-to-use interface combined with a rich extensibility framework, Oracle Data Integrator Enterprise Edition helps improve productivity, reduce development costs and lower total cost of ownership among data-centric architectures.