By 
By Kwanele Dhladhla
The Eswatini Revenue Service (ERS) is tightening its grip on tax defaulters, with the latest move being the monitoring of transactions in real time to detect anomalies and identify potential tax evasion more effectively.
In what has been termed fiscalisation technology, ERS, led by Commissioner General Brightwell Nkambule, has presented a business opportunity for companies to develop and supply a proposed solution that should be designed to meet the ERS’s needs of ensuring compliance with all relevant tax regulations while optimising their operational efficiency.
The solution required may offer, and not be limited to, electronic Invoicing.
It has been explained that the desired electronic invoice solution automates the generation, transmission, and validation of invoices between businesses and ERS.
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It also provides real-time invoice reporting, facilitates timely Value Added Tax (VAT) collection, and reduces the risk of fraud through invoice manipulation.
Tenderers have been tasked to develop a system that could enable the revenue service to undertake fiscal data reporting.
This entails real-time reporting systems that instantly capture and transmit transaction data to ERS or at predefined intervals.
The system will make automatic checks of consistency and authenticity of submitted data through, but not limited to, specialised algorithms. Fiscal devices,
such as electronic fiscal printers or point-of-sale (POS) systems, which generate and store digital fiscal receipts for each transaction, will be integrated with ERS systems to ensure the accuracy and integrity of fiscal data.
The system will provide advanced data analytics tools to analyse large volumes of transactional data to identify patterns, trends, and anomalies that may indicate tax evasion.
The system further does “predictive analytics to help ERS proactively detect non-compliance and target high-risk taxpayers.”
ERS intends to utilise blockchain technology.
It was explained that blockchain technology offers secure and transparent transaction records, reducing the risk of data manipulation and ensuring data integrity.
There will also be “smart contracts to automate VAT calculations and payments based on predefined rules to enhance efficiency and accuracy.”
It was pointed out that in its quest to uncover tax evasion, the ERS system will tap into machine learning and Artificial Intelligence.
“The machine learning algorithms will analyse taxpayer data to identify compliance patterns, detect irregularities, and flag potential risks. It will use AI-powered tools to improve tax risk assessment, fraud detection, and decision-making processes for the ERS,” reads the Request for Proposals (RFP) in part.
ERS has also explained that it has an intent to utilise Application Programming Interfaces (API’s) which will enable seamless integration between taxpayer systems and ERS platforms.
“There will be real-time data exchange via APIs enhances transparency, simplifies compliance processes, and reduces administrative burdens. Integration of customs and domestic taxes transactional data for compliance verification and transaction tracking,” it was explained.
The system to be developed and supplied by interested tenderers should enable ERS to use mobile applications and digital platforms to allow taxpayers to access tax services, submit reports, and receive notifications on their mobile devices.
ERS stated that it requires a system that uses mobile solutions to improve taxpayer engagement, convenience, and compliance by providing easy access to tax-related information.
As part of the features, it was mentioned that there should be compliance automation.
This was described as automated compliance tools to help businesses calculate, report, and remit VAT accurately and efficiently.
Compliance automation to reduce manual errors, simplify reporting processes, and ensure timely VAT payments,” it was explained.
ERS said the system should incorporate robust data security measures, such as encryption, access controls, and secure data storage, while protecting sensitive taxpayer information from unauthorised access or cyber threats.
“Compliance with data protection regulations to ensure the privacy and confidentiality of taxpayer data throughout the fiscalization process,” ERS emphasised.
The system should have a feature on stock management; “For ensuring accurate tracking of goods which include real-time tracking for VAT calculations,
utomated reporting to ERS, VAT calculation accuracy, compliance checks throughout the supply chain, maintaining audit trails, data integration for error reduction, batch and serial number tracking for compliance, reconciliation for accurate reporting, risk identification for mitigation, and scalability for adapting to business growth while upholding VAT standards.”
Companies that may be interested in developing the desired system for ERS have been sternly warned against any form of corruption.
It was mentioned that it remains the policy for the Eswatini Government through the Eswatini Public Procurement Regulatory Agency (ESPPRA) to require that procuring entities, as well as consultants, observe the highest standards of ethics during procurement and the execution of contracts.
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In pursuit of this policy, the government defined, for this provision, corrupt practice as the offering, giving, receiving, or soliciting, directly or indirectly, of anything of value, to influence the action of a public official in the procurement process or contract execution.
Fraudulent practice was explained to be any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation.
Tenderers were warned against collusive practices such as an arrangement between two or more parties designed to achieve an improper purpose, including improperly influencing the actions of another party.
ERS has also guarded against any coercive practice which refers to impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party.
“The procuring entity will reject a recommendation for award if it determines that the consultant recommended for award has engaged in corrupt or fraudulent practices in competing for the Contract.
ESPPRA will suspend a consultant from engaging in any public procurement proceeding for a stated period if it at any time determines that the consultant has engaged in corrupt or fraudulent practices in competing for, or in executing, a government contract,” it was added.
