‘Mahassal’ To Be Launched Next Week
Wednesday, September 10, 2008 at 9:55 am under Business News ‘Mahassal’ To Be Launched Next Week
The ‘Mahassal’, an advanced version of tax management system (TMS), would be launched by different reformed units, including Large Taxpayer Unit (LTU), Islamabad; Regional Tax Office (RTO), Rawalpindi. and RTO, Faisalabad, from next week to carry out all income tax-related functions, electronically.
Sources told Business Recorder on Tuesday that the Federal Board of Revenue (FBR) has successfully tested the system in LTU, Lahore, which would be replicated in two phases across the country from October 1, 2008. The ‘Mahassal’ team, headed by Project Director Ranna Ahmed, has finalised all arrangements for launching of the system from next week.
The infrastructure development, software, training of staff and availability of Servers, local/wide area networks has been made at all stations. Under the rollout plan, the home-grown system would be replicated on successful operations in Islamabad, Rawalpindi and Faisalabad. The Project Director has provided support persons at each station for proper functioning of the system.
Details showed that data entry of manually filed income tax returns would be done in the field formations to save both the time and the money. The electronically filed returns would be directly uploaded in the ‘Mahassal’ system, whereas manual returns would be entered in the system after data entry. Once the data is uploaded in the system, the business returns processes would electronically check all returns and ‘deficiency notices’ would be automatically generated to persons giving incomplete information in the returns.
The e-filers would automatically receive the notices through e-mail directly from the Web-Portal. If no response has been received from taxpayers within 15 days of issuance of notice, the return would be declared as invalid. The system would accept the returns where timely response of taxpayers has been submitted by the taxpayers. The whole process would be completed electronically without involvement of manual interference of the tax officials.
Sources said that the most critical task of cleansing historical data of taxpayers has been completed. The necessary data of taxpayers ie receivables, payables, un-adjudicated business losses, depreciation and amortisation would be maintained by the department. The data would be uploaded in the ‘Mahassal’ system whenever required for the processing of returns.
The project would be an end-to-end solution to all direct taxes related operations and maintenance of tax records. The project would cover documentation of income tax returns, calculation of taxes, raising demands, issuance of computerised notices, appeal system, taxpayer ledger and balance system and other operations of direct taxes side.
Primarily, ‘Mahassal’ has been designed to enhance tax base by cross-matching/analysing taxpayers declarations against internal and external data sources, standards/benchmarks. It would provide all necessary tools to the tax administration, to assess risks to revenue, to correctly apply tax laws/business rules, to plug revenue leakage, to collect due taxes and to identify non-compliant/non-filers of tax declarations.
It provides for entry of arrear/current demand/refund at the time of switching over from manual to automated system and constant updating of current/arrear demand/refund, through Re-assessment/Rectification/Appeal Effect, collection and write-off of demand, adjustment and issuance of refund.
The system would reduce interaction/contact between tax collector and taxpayers through automating business processes, electronic filing of tax returns/other documents and monitoring of current status of any business process on the internet.
Through automating business processes, on-line, real time availability of data, electronic filing of returns/other documents, quality service to taxpayers would be ensured. Sources said that the ‘Mahassal’ is very extensive in its scope and covers the entire lifecycle of business processes of income tax.
It is a core sub-system that interacts with all other sub-systems, takes input from one or more sub-system, processes it on the basis of pre-defined risk parameters/criteria/factors, calculates risk on the basis of pre-defined formula, and yield risk channels as an output for other sub-systems. It provides for selection of cases for audit on the basis of risk assessment which quantifies the risk involved in a case on a yearly basis by assigning weighted average to various risk factors.
It would also manage registration, de-registration, updating, suspension or restoration of registration, for pre-defined persons (individual, AOP, company). The system has the ability to manage refunds for pre-defined registered persons. Moreover, it would also electronically manage the penalty regime.
Dispute management would also be done by the system, electronically. The system would effectively handle disputes at different stages ie (Revision, Review, First Appeal, Second Appeal, Reference, Complaint, Dispute, etc), for Individual, AOP, companies before forums like Commissionerate, Appellate Tribunal, High Court, Supreme Court, Federal Tax Ombudsman, Alternate Dispute Resolution Committee, etc).
It would also manage withholding taxes; monthly, quarterly, bi-annual, annual, etc. The system would have the ability for selection of cases for Audit on the basis of risk assessment; allocation of cases selected for audit to suitable Auditor on the basis of expertise; issuance to taxpayers of intimation letter about selection for audit; issuance of statutory notices to taxpayers; follow-up of notices through order sheets; provision for different analyses/ratios; computation of income and tax; issuance of assessment orders/demand notices/tax payment receipt(s)/refund vouchers after audit; issuance of rectification orders/demand notices/tax payment receipt; re-assessment of set-aside orders and amended assessment orders.
The system would also be engaged in enforcement related functions including issuance of penalty notices; follow-up of penalty notices through order sheets; imposition of penalty, Issuance of penalty Orders/Demand notices/tax payment receipts; filing of prosecution; issuance of refund orders; issuance of recovery notices/tax payment receipt; issuance of additional tax orders/demand notices/tax payment receipts; monitoring of deduction of tax at source/advance tax; issuance of exemption certificates; updating of outstanding demands and refunds; write-off of irrecoverable demand.
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