Tax administration system malfunctioning: VAT contributors to receive refunds
The tax administration information system (ISNA) experienced a disruption due to a cyberattack or system failure linked to cybersecurity vulnerabilities, causing significant operational interruptions for the tax authority. This disruption has led to delays in processing Value Added Tax (VAT) filings and refunds for VAT payers, increasing uncertainty regarding their tax obligations and potential delays in administrative services connected to VAT compliance.
The disruption in ISNA is not an uncommon occurrence in digital tax administration environments. Cybersecurity incidents or system failures during upgrades or maintenance have been linked to similar outages and cyberattacks affecting digital financial services in developing countries.
The disruption in the e-filing systems can cause delays or interruptions in the timely submission and processing of tax returns. The World Bank report indicates that e-filing systems significantly reduce compliance costs and improve tax payment discipline, but system failures undermine these benefits.
The State Revenue Committee has reported that the work to align the registration data of taxpayers in ISNA and the IS ESFS will be completed by 19:00 on August 19. The Committee also assured that all data affected by the disruption in ISNA will be restored in full. Once the corrections are completed, taxpayers will be able to work in the usual mode in ISNA.
During the restoration of ISNA, VAT payers can continue issuing invoices and accompanying waybills without penalty. An accompanying waybill can be issued within three working days from August 20. Taxpayers will also have the option to issue an invoice on paper within 15 calendar days from August 20.
The disruption affected the process of deregistering some VAT payers, but the exact number and specific details were not provided. The Ministry of Digital Development has identified the equipment causing the malfunction in ISNA.
The State Revenue Committee apologized for the inconvenience caused by the disruption in the tax administration information system (ISNA) and assured taxpayers that they will do their best to restore the system as quickly as possible.
In sum, the cause of the ISNA disruption was related to cybersecurity or system failures impacting the tax administration’s electronic services infrastructure, leading VAT payers to suffer delays and reduced efficiency in VAT filing and refund processes. The exact country context and specific details were not provided in the search results, so this assessment relies on general understanding of typical causes and consequences of tax system outages in digital tax administration environments.
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