The Inland Revenue Department (IRD) encountered a systems failure in e-filing of returns on Thursday November 30, the last date to submit tax returns for 2022-23. “There was chaos at the department,” said one taxpayer who had gone there to file his returns. The crisis applied to only e-filing of returns as the IRD computer [...]

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Last-day system failure at IRD, deadline extended

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The Inland Revenue Department (IRD) encountered a systems failure in e-filing of returns on Thursday November 30, the last date to submit tax returns for 2022-23.

“There was chaos at the department,” said one taxpayer who had gone there to file his returns.

The crisis applied to only e-filing of returns as the IRD computer system could not manage the load of computer-filled returns, particularly large returns where big audit firms file at least 1,000 returns for a company. “The whole system slowed down affecting operations,” said a senior auditor of an audit firm, adding, “The system simply couldn’t handle the surge in entries.”

Faced with a systems failure, the department said those who had tried and failed to register their returns through the e-filing process were given 48 hours more to file their returns with that deadline ending at midnight yesterday.

For manual filing, mostly by individual taxpayers as the private sector submits return through e-filing, the deadline ended on November 30 and late returns would be subjected to a fine of Rs. 50,000 and 5 percent of the tax payable.

The auditor said last year, too, the department faced similar challenges in receiving e-returns on the closing date. “But this year it was worse,” he said.

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