This technical note is the third of three addressing information technology themes and issues relevant to tax administrations. This note focuses on implementation of a commercial-off-the-shelf (COTS) system in a developing country tax administration. The first note covers the use of information technology (IT) in tax administrations and how to develop an information technology strategic plan (ITSP) and is intended for developing country tax administrations that are largely manual or have outdated legacy IT systems. The second note addresses how to select a suitable information technology system for core tax administration functions. Ideally, the notes would be read in order but a tax administration that already has an ITSP may choose to go to note two to determine the type of system most suited to its circumstances or straight to note three if the preferred system has already been selected. The content of these technical notes reflects the themes and issues the IMF Revenue Administration Divisions are frequently called upon to assist member countries with.
These technical notes are primarily for use by tax administrations that have no technology to manage their core tax processes, or their technology is limited and outdated. The notes may however, also be of interest to more advanced administrations. These notes focus on core tax functions and do not address other business systems (e.g., payroll, finance, document, and asset management systems). For advanced IT tax administrations, there is a wealth of other information available including the OECD Forum on Tax Administration publication: Technologies for Better Tax Administration. A Practical Guide for Revenue Bodies, May, 2016.1
This technical note and manual (TNM) addresses the following questions:
What is involved in implementing a COTS Core System?
What are the steps involved in setting up a program management structure?
What are the roles and responsibilities in a program management structure?
What is the significance of vendor roles and relationships?
What business process considerations exist?
What are the implementation considerations?
How is data conversion/migration managed?
What security issues are present?
How is the product tested?
How is the change to the new system managed?
What are the common pitfalls?
What are the effects on business-as-usual systems operation?