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.