Challenges of the accounting profession; facing the failures of the tax management system in Paraguay

Abstract

In Paraguay, taxation is managed by the Ministry of Economy and Finance, specifically through the National Directorate of Tax Revenues, which is responsible for collecting taxes. Professionals pay taxes using the tax management system called "Sistema Marangatú", where all accountants in Paraguay record their tax transactions. The main objective of the research was to identify the challenges faced by the accounting profession in light of the shortcomings of the tax management system. A qualitative, non-experimental, descriptive approach was employed. The study population consisted of 13 accountants who owned accounting firms, and intentional sampling ensured 100% participation in interviews. The primary findings indicate that the system has shortcomings such as issues with filing tax declarations, system crashes, slowness, and unpreparedness for electronic invoicing, among others. These problems lead to penalties for late submissions, inefficiencies, and complaints from banks and clients regarding information requests, resulting in stress and workload overload for professionals. Identified challenges include better organization of client portfolios and making the most of system uptime. Recommendations include lobbying through professional associations for a grace period of at least two days before imposing penalties, expanding the system, ensuring online stability, and achieving 100% functionality to provide quality service to taxpayers. Therefore, the findings demonstrate existing system flaws and highlight challenges such as anticipating workloads before deadlines to prevent system failures.