TaxOnline

1. TaxOnline TPIN Format & Migration

2. Current TPIN Format • The current TPIN format followed by ZRA comprises of 13 digits • e.g. 1000006064707 • First Digitis Type of Tax Payer • 1 for Limited Companies, • 2 for Foreign Incorporated Companies, • 3 for Partnership, • 4 for Individuals, • 5 for Foreign Individuals, • 6 for Government Agencies and • 7 for other types of Taxpayers • Second Digitis kept for duplicity count, it runs from • 0 for no duplicity, • 1 for 1 duplicate having same details, • 2 for 2 such duplicates and so on. The maximum count of duplicates as per ZRA team has gone to 4 (one case for 9 also)

3. Current TPIN Format (e.g. 1000006064707) • Third Digit to Eleventh Digit is the number as per taxpayer type • PACRA number for Limited Companies, Foreign Incorporated Companies, Partnerships • NRC number for Sole Proprietors and Individuals • Certificate Number for NGO, PBO, Club, Association, Society, Ministry body issued by Registrar of Societies or Ministry of Land or Ministry of Agriculture • Passport Number for Foreign Individuals or Work permits if they have • Twelfth and Thirteenth Digit is the two digit check number • generated by Combination of mathematical computation and Modulo 13 algorithm

4. Our Observations & Proposition (e.g. 1000006064707) • First Digit– The type of taxpayer • This can be a separate field in database and there is no need to provide distinct series of TPIN to different taxpayers. • Second Digit – The duplicity count • If we do away with generating TPIN using various ids from different departments, we don’t foresee any duplicates in future • Third Digit to Eleventh Digit – The number as per taxpayer type • We are generating TPIN using numbers generated by various departments like PACRA, National Registration Office, Registrar of Societies, Ministry of Land, Ministry of Agriculture etc. • We are running a risk as any of these agencies may go for computerization or if already computerized than may go for revamping of system and may alter their data structure for issuing numbers • Few examples are PACRA is currently issuing 5 digit number and now they are planning to issue 13 digit unique number • NRC is currently issuing 9 digit number and now they are planning to issue 10 digit unique number • As these are external agencies and we do not have any control over their IT system nor their Business Processes

5. Our Observations & Proposition (e.g. 1000006064707) • Twelfth and Thirteenth Digit – The two digit check number • Identified 147 check digit discrepancy cases in current database.

6. Data Discrepancies in current database Discrepancies for TPIN cases

7. Our Proposition for new TPIN format Looking at all the above reasons, we propose to introduce a 10 digit number for TPIN, of which first 9 digits will be sequence number and last digit will be check digit. • By doing this we can ensure for no dependency on any external agency, • We will keep all the numbers like NRC, PACRA number in our database in separate fields and will run the duplicity checks on these numbers • TPIN would be independent of all these numbers • We are not keeping taxpayer category, taxpayer location etc. in TPIN and it will be stored in separate fields. • 10digit TPIN will be a smaller in size and easier for taxpayer to memorize.

8. Length for new and old TPIN • If we keep the length of new and old TPIN as 13: • If we keep the Length in the new software as similar to existing length of migrated TPINs from ITAS and TARPS, i.e. 13 digit, there could be a probability of generation of duplicate TPINs which will not be accepted in the system • If we keep length of new TPIN either greater or smaller than 13 digits: • There would be uniformity issues both in the system and database structure • The system would be not able to do the client side length validation scripts and every time the system has to have server trip to check the TPIN validity • The system would not be able to do the check digit logic check at client side due to non-uniformity and the system has to rely on server trips • Due to the reasons 3 and 4 the performance of the system would be affected • The banks would not be able to rely on check digits to ensure the correctness of TPIN for e-Payment integration and will have to maintain the TaxOnline database at their end while accepting payments

9. Migration & Challenges • The system would do this migration from old TPIN to generation of new TPIN within a span of a single day and print the new TPIN certificates. (Demo) • It will just be an administrative and change management challenge for the department for example. • Print and Communicate to taxpayer for new TPIN Certificates • Taxpayers may already have invoice book with current TPIN then they have to reprint new invoice book with new TPIN number • If Taxpayers have given their old TPIN anywhere for mapping they will have to update it with new TPIN number • Migrated and newly generate TPIN needs to be updated in ASYCUDA system etc…

10. Highlights in media for change in IT systems

11. Highlights in media for change in IT systems

12. Highlights in media for change in IT systems

13. Highlights in media for change in IT systems

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