81303739-Good Financial Governance in Zambia IV

In 2019, GFG III Program started to support ZRA in development of a Bulk Intelligence Data Analysis (BIDA) system. Development of the BIDA system is a response to low levels of taxpayer compliance in Zambia and various existing forms of tax evasion and fraud. Some underlying systemic weaknesses that give rise to weak taxpayer compliance are the insufficient quality of taxpayer data and the unsystematic analytical use of the existing data due to a widespread disconnect of data sources. The BIDA system represents the systemic, professionalized, and large-scale solution to ZRA"s analytical requirements in this area.

Subject of this procurement is the further development of the already existing BIDA system at ZRA, focusing on four aspects: First, the development of a taxpayer compliance risk module integrated into the BIDA system to aid ZRA in identifying risks related to taxpayer non-compliance and foster more efficient selection of taxpayer audit cases. Second, connection of the remaining ZRA-internal data sources to BIDA as well as connection of several other data sources held by various government bodies, with the aim of significantly improving ZRA"s analytical data-matching capabilities and laying the foundations for a 360 degrees taxpayer view. Third, systematic improvement of data quality and reporting at ZRA. Fourth, the provision of 3rd level support for the BIDA system.

GIZ is seeking the services of a qualified consultancy with extensive experience in data warehouse/business intelligence systems development, data governance and data management, compliance risk management, ideally in public administration in general and tax and customs administration in specific.

The service provided by the contractor includes seven work packages, which have no chronological order and can also be implemented in parallel, depending on the implementation methodology. These are:

Work Package 1: Project management: The contractor appoints an experienced project manager/team leader as a permanent contact for the entire team of service provision. The project manager will be responsible for project management and team leadership on behalf of the contractor. Project management involves: compiling an overall picture of ZRA"s technical requirements and breaking them down into a schedule and personnel plan; coordinating the schedule of the individual steps with the client and documenting it in the form of a shared project plan; production of a project/iteration plan that specifies the iteration in which specific requirements are implemented; drafting of regular progress reports to GIZ and ZRA during the development stage; and quality assurance.

Work Package 2: Development of a BIDA-based taxpayer compliance risk engine: As part of Work Package 2, the contractor will develop a taxpayer compliance risk engine based on BIDA and link it to the existing audit module in TaxOnline 2.

Work Package 3: Connect new ZRA-internal data sources to BIDA (Iterations 1 and 2): The contractor supports the ZRA Analytical Service Center (ASC) team in adding the remaining internal ZRA data sources, which currently are not included in the existing BIDA environment. These ZRA-internal data sources are (1) ZRA"s financial system that uses SAP and contains all financial data as well as the (2) new Electronic Invoicing System (EIS) that is currently being implemented by ZRA.

Work Package 4: Connect new 3rd party data sources to BIDA (Iterations 1 to 3): The contractor shall enhance the efficiency and effectiveness of the present BIDA system by adding a minimum of three new 3rd party government data sources to the existing system. These data sources include the Ministry of Finance and National Development"s (MoFNP) Integrated Financial Management and Information System (IFMIS), the Ministry of Lands and National Resources" (MoLNR) system as well as the Bank of Zambia"s (BoZ) system.

Work Package 5: Improve ZRA data quality and reporting (Iterations 1 to 3): The contractor will contribute to the identification and resolution of data quality issues for the data already stored in ZRA IT systems. This entails the improvement of existing reports on data quality and their dissemination. Also, one iteration is dedicated to the identification of current sources of data entry errors in core ZRA systems and the development of processes to remedy these. Finally, this work package entails the creation of a M&E dashboard that tracks key results metrics of the BIDA system and how these impact organization-wide performance KPIs.

Work Package 6: Develop a 360 degrees taxpayer"s view system: The contractor shall develop a fully-fledged dashboard that displays e.g. all the revenues, expenses, stakes, and participations, etc., by using all the information available for a given taxpayer. The dashboard should also display the linkages between companies (who is the seller/buyer of whom) and shareholders (who is the stakeholder of which company and how are they retributed, how shareholders are linked to other companies, etc.).

Work Package 7: Ensure 3rd level support for all BIDA related issues: The contractor should ensure a 3rd level support after completing all other work packages and assist with any issues in the implementation of existing BIDA system for a maximum of 30 working days over 1 year. 3rd level support is supposed to include maintenance of all components (bug fixing, software and hardware updates, data backup and recovery), not to exceed program duration (30.06.2027).

Optional Work Package 8: Other data-related and analytical activities: In case additional finances and sufficient implementation time are available, GIZ reserves the right to request the extension of the scope of the contract, without an additional tender. This extension can cover at maximum two additional iterations that mainly relate to the connection of additional 3rd party government data sources. Iteration's scope would be comparable to WP4 iteratations.