The revenue authority of your country has recently launched an online based integrated tax management system whose aim is to make it more convenient for...

      

The revenue authority of your country has recently launched an online based integrated tax management system whose aim is to make it more convenient for firms and individuals to pay tax.
In light of this statement:
(i) Briefly explain how an online based integrated tax management system works.
(ii) List three types of tax returns that are filed under the system.
(iii) Evaluate five benefits that are derived from use of the system over the traditional model of filing tax returns

  

Answers


Wilfred
(i) Explanation of how an online based integrated tax management system operates:
A secure online tax management system allows one to register, file tax returns, process payments and make status inquiries with real time monitoring of their tax ledger/account

(ii) Types of tax return filed under this system are:
- Monthly PAYE returns
- Value added tax and excise returns
- Quarterly and annual income tax individuals return.
- Turnover tax (TOT) returns.
- Corporation tax return (ITZC)
- Partnership return (ITZP)

(iii) Benefits of using online based tax management system are traditional model of filling tax returns are:
- Access to the t a x payer ledger including access by employees on their PA YE deductions.
- Real time update on the taxpayer‘s ledger upon filling of returns and making payments.
- It is accessible at the comfort of the taxpayers of fees or home.
- Numerous payment channels are available as KRA has approved more banks to make payments of domestic taxes more convenient.
- It has led to reduced refunds backlog by allowing taxpayers to utilise approved refunds to offset other tax institutions.
- Provides feedback via e-mail or short message service (SMS) upon completion of a transaction through generation of electronic certificates.
- Simpler domestic tax return filling that is the returns are based on the excel format.
- It is time savings as it reduced queuing of the banking hall and revenue offices.
- It has facilitated swift application and processing of tax related services
Wilfykil answered the question on February 15, 2019 at 05:54


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