Tata Consultancy Services (TCS) has bagged a three-year IT deal from Zambia Revenue Authority (ZRA) for modernization of its domestic tax system. India’s largest software services firm did not share financial details of the IT deal.
TCS will offer an integrated tax software application based on its taxation framework, taxpayer 24×7 portal for e-services delivery, data migration, training, roll-out, warranty and operational support, TCS said in a statement.
This is TCS’s third revenue and tax system automation project in Africa. The other IT deals were with the Uganda Revenue Authority and Kenya Revenue Authority.
TCS has done more than 15 tax framework implementations in India, seven in the U.S. and two in Africa.
“The framework will help Zambian government deliver taxation services to its citizens as well as provide an effective monitoring system for its tax officials,” said TCS vice president and global head (government industry solutions unit) Tanmoy Chakrabarty.
ZRA, as part of its tax reforms and modernization program, has engaged TCS to provide an integrated and multi-tax system covering VAT, Income Tax, Pay-As-You-Earn, Presumptive Tax, Turnover Tax, Mineral Royalty Tax, Excise, Property Transfer Tax, Medical Levy and Withholding Tax.
Once operational, the system is expected to transform the service delivery to taxpayers, support the country’s sixth National Development Plan and assist ZRA to better control and monitor operations as well as prevent and detect potential revenue leakages.
Further, the new system is also expected to bring about a higher degree of accountability and transparency to the public.
The TaxOnline project has emerged as one of its critical modernization initiatives aimed at reducing the cost of compliance and increasing processing efficiency.
“TaxOnline will also enable the authority to detect and deter any tax evasions through the intense cross analysis of the tax information and tax compliance which will eventually improve tax collection,” said ZRA Commissioner General Berlin Msiska.
With this system, taxpayers would experience new e-services and simpler tax processes resulting in improved levels of voluntary compliance, Msiska added.
Tata Consultancy Services posted a 15.5 percent rise in consolidated net profit to Rs 3,831 crore in the first quarter ended June 30.
The country’s largest software exporter also recorded growth across regions other than India.
The IT major’s revenues rose 21 percent to Rs 17,987 crore.