Seabata Mahao
The Revenue Services Lesotho (RSL), in collaboration with the Land Administration Authority (LAA), has launched the Automatic Compliance Project (ACP), a cutting-edge initiative aimed at reducing human errors in tax compliance and enhancing efficiency in tax collection.
The project is part of RSL’s broader strategy to invest in knowledge and technology to modernise the country’s tax system.
Speaking at the launch, RSL Commissioner General, ‘Mathabo Mokoko, described the ACP as a significant milestone in the effort to streamline and automate the tax compliance process for both businesses and individuals.
She emphasised that this initiative marks a crucial step forward, not only for RSL and LAA but also for the entire tax ecosystem in Lesotho.
“Tax compliance can often be a complex and time-consuming task, with businesses and individuals required to navigate through regulations, forms, and deadlines,” Mokoko said.
“This process frequently leads to errors and inefficiencies, which burdens taxpayers and places additional strain on tax administrators tasked with enforcement and audits.”
Mokoko explained that ACP would address these challenges by utilising advanced data analytics and artificial intelligence to simplify tax compliance. The technology will automate the collection, processing, and verification of tax information, making it easier for taxpayers to meet their obligations accurately and on time.
By automating the compliance process, RSL aims to reduce the burden on taxpayers while improving the efficiency of tax administration. This would enable RSL to better identify and address non-compliance, ensuring that all citizens contribute their fair share and fostering a more equitable tax system.
“Our ultimate goal is ambitious but clear. We want to transform tax compliance into an automatic process, where non-compliance becomes an effort in itself.” Mokoko added.
The ACP project is being implemented in phases, starting with the auto-population of PAYE (Pay As You Earn) returns for RSL, LAA, and government ministries. In this phase, referred to as the Minimum Viable Product (MVP) 1, the payroll data of these entities is automatically shared, pre-populating PAYE returns for easier submission.
Mokoko noted that while RSL and LAA have successfully integrated with the ACP solution, integration with government ministries has been delayed due to reconfiguration following the 2022 general elections. Despite this, she reaffirmed RSL’s commitment to expanding the system to include government ministries and other PAYE taxpayers in the near future.
LAA’s Director General, ‘Mataeli Makhele Sekhantšo, highlighted the long-standing partnership between RSL and LAA, dating back to the signing of a Memorandum of Understanding (MOU) in 2013. In November 2023, the two authorities agreed to pilot the ACP for PAYE e-filing, and a project team was formed to lead its implementation.
“The goal of this project is to simplify the process of filing tax returns and ensure compliance. With the ACP, taxpayers can file returns from the comfort of their homes, with pre-populated PAYE forms for ease of submission. Their role is simply to confirm, upload, and submit.”
Sekhantšo confirmed that the system is already in use, with RSL successfully retrieving PAYE files as early as August 2024.
The ACP project represents a critical step toward modernizing Lesotho’s tax system, with the potential to reduce administrative burdens, increase compliance, and create a more streamlined tax environment for all stakeholders.
