Some of the functions of an electronic tax administration system cannot be effectively used without certain external preconditions. In particular, automated payment and collection functions require an effective electronic payments system operated by the financial sector and an effective treasury system. These conditions are still not fully present in the Kyrgyz Republic, which limited the project's outcome._x005F_x000D__x005F_x000D_Tax administrations (or any other organization) should not overly rely on external experts to develop and maintain software. In particular, they should keep and be able to use the source code of externally developed software. The difficulty in upgrading the legacy system (KITIS, or Kyrgyzstan Integrated Tax Information System) was also due to lack of knowledge by the STS (State Tax Service) of the source code, and lack of an agreement with the software developers. These difficulties and the subsequent decision to develop a new customized software solution significantly delayed the project. It is also critical to have in place information technology expertise to monitor the software development process and ensure that critical features are made effective._x005F_x000D__x005F_x000D_Automation and improved information technology systems can be first steps for change of business processes and improvements in governance. It is, however, extremely difficult for a tax administration to move into full automation from a very low level.
Tax Administration Reform and Modernization Project