Currently dysfunctional Random Access Management Information System (RAMIS) installed at the Inland Revenue Department (IRD) is to be reactivated by December this year changing the original design and software system, Finance Ministry sources disclosed.
The new system will reverse the unintended consequences of the original design that resulted in even more discretion and interaction between revenue officials and taxpayers, and a mis-utilisation of scarce IRD resources, a top IRD official said.
A review and streamlining of various business processes that RAMIS was programmed to automate is now underway.
Streamlining the online filing experience would be a relatively quick and inexpensive undertaking and if instituted could justify a policy of mandating electronic tax return filing for all taxpayers with commensurately fewer interactions with IRD officials.
The new system will prevent the fraudulent practices of tax evaders and activities of corrupt officials helping them and detect officials who are not properly carrying out the duty of revenue collection, the office of the president’s Chief of staff revealed.
The RAMIS should be fully automated without any manual process capable of preventing the accumulation of default taxes.
The agreement with the Singaporean Company to develop and maintain the RAMIS will expire by 31st January 2024, and the internal capacity including the human resources of the Department has not been developed to take over the full responsibility of the RAMIS by the end of January 2024.
The Chief of Staff of the President, Sagala Ratnayake, has instructed the relevant departments to re-activate the system software within two months to facilitate the 2024 budgetary process.
It has been recommended to introduce a Public-Private Partnership (PPP) arrangement changing the business model of RAMIS by involving a private entity to run the back office and maintain the system by creating a mutually beneficial arrangement. (Bandula)
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