DESIGN AND IMPLEMENTATION OF A COMPUTERIZE TAX COLLECTION AND MANAGEMENT SYSTEM

DESIGN AND IMPLEMENTATION OF A COMPUTERIZE TAX COLLECTION AND MANAGEMENT SYSTEM

ABSTRACT

A tax is any levy imposed on a person or an entity by a governing body or its equivalent, the nonpayment of which is penalized by law. Taxation and the institution of taxation are as old as civilization itself, spanning religion, race, and geographical borders. In most modern cultures, prompt tax payment and reduced tax evasion is always a fundamental goal of the government. Tax evasion has shown to be a difficult habit to combat even in nations with a proper database on its citizenry, and the existing method of tax payment is redundant and time-consuming, as determined by a survey of our case study participants. Some of the problems that governments must overcome in order to encourage timely tax payment and effectively prevent evasion include providing accessible payment methods and maintaining proper record-keeping systems. This research work is a concise summary of how the continuous development of computing science, as well as its wide spread ability to be deployed to solve a wide range of problems, can be geared toward the development of an electronic taxation system to assist government bodies with convenient tax collection and record keeping. For system development, the waterfall methodology was chosen. The system’s goals include rapid access, increased productivity through efficient resource usage, database generation and records management, operation simplification, reduced processing time, user friendliness, portability, and flexibility for future improvement. E-taxation is not a new system, but rather a local solution to a worldwide problem. This system investigates how tax payment might be incentivized through payment processing simplification and greater efficiency.

CHAPITRE ONE

INTRODUCTION

According to a World Bank economic study on Nigeria released on May 1, 2013, 95% of the government’s budgeted expenditure was dependent on predicted oil revenue based on current world oil prices. It was also recommended in the report that the Federal Government enhance its domestic tax structure in order to increase internal revenue and provide a financial backup plan for the economy in the case of a drop in oil prices (The World Bank, 2013). A tax is a charge levied by the government on individuals, entities, or property in order to generate revenue for the government (Black, 1999). Taxation is a typical source of revenue for funding government activities. Individuals and companies are expected to satisfy their tax payment commitments as required by law in order to provide the government with financial authority, among other purposes of taxation. Effective taxation becomes crucial as a source of financial power for a government to manage its region.

Most countries use one of two types of taxation: direct taxes levied on the taxpayer’s income, profit, or asset ownership. The other type of tax is indirect tax, which is imposed on commodities before they reach the consumer and is paid by the consumer as part of the selling price per unit of the item rather than as a tax (Money Control, 2013).

The Nigerian tax system is plagued by numerous issues, including: Due to a lack of a competent record keeping system, there is little data on the history of tax collections or tax payers (Federal Republic of Nigeria, 1997). There is a scarcity of complete tax statistics, as well as a centralized database for those that do exist (Federal Republic of Nigeria, 2002). Deployment of scarce human resources and other resources into redundant positions and job activities (Ariyo, 1997). Duplication of taxes and its detrimental impact on taxpayers is a problem caused by a conflict between the government’s fiscal responsibility and fiscal power (Odusola, 2002). Tax evasion is a deliberate attempt by taxpayers to avoid paying taxes (Odusola, 2003). The goal of the e-taxation system is to provide the tax authority with a database containing information about taxpayers and their transactions. This would prevent tax evasion and, as a result, enhance government tax income. It would also allow taxpayers to conduct their transactions online without having to visit the FIRS office, lowering the pressure on the FIRS’s resources and allowing for the re-allocation of freed-up resources. The following goals were considered during the creation of the e-taxation system: Create and administer an effective and efficient database to supply tax payers with records, information, and bio-data for quick reference. The availability of alternative payment pathways for tax payers in order to encourage early tax payment and to provide relief to those who find it a more convenient and efficient payment method. This will be accomplished by developing a web-based system into which registered entities can log in and make payments. The existence of an alert system to notify the regulatory body of unpaid invoices by registered firms and employees.

The e-taxation system will be designed for use by the federal tax authority for tax payment, record keeping, and educational/awareness campaigns in underdeveloped and developing countries, with a particular emphasis on the African continent.

1.1 THE STUDY’S BACKGROUND:

The people and cultures they serve are as diverse as the governments they represent. They all confront the same basic issues when it comes to keeping a government running through efficient tax assessment and collection. Whether you’re a county on Florida’s Gold Coast or an African republic emerging from conflict and implementing comprehensive tax procedures for the first time, it all comes down to fair and transparent property assessment and valuation; efficient, effective billing and collection procedures; and complete transparency with your most important constituents – the public.

Breakdowns at any step in the system might result in lower income, confusion, and unfairness impressions. However, revenue departments face significant internal constraints since they are frequently forced to make the most of aging or obsolete software and hardware systems. It’s the old chicken-and-egg problem: To improve your tax management and collection skills, you must use the best tools available. At the same time, how can you finance improved technology unless you gather the necessary revenue?

The majority of businesses currently employ a computerized payroll system. A computerized payroll system will not only eliminate challenging problems, but will also deliver a quick and accurate salary calculation. Dave Rooses (2010) describes how payroll systems work in his paper. There are numerous problems that can occur in a manual payroll system; however, if the payroll is computerized, payroll clerks will not need a calculator to figure the employee’s salary. Payroll is the total of all financial records for an employee’s salary, pay, bonuses, and deductions. Payroll in accounting refers to the amount paid to an employee for services rendered within a specific time period. Wikimedia Commons, 2005. The employer is compelled to withhold a portion of each employee’s salary since the funds will be used to pay the employee’s income taxes, union dues, and medical insurance premiums. (McGraw-Hill International Edition publishes fundamental financial and managerial accounting concepts).

Payroll processing is a subset of purchasing in which the company buys labor rather than raw materials or finished commodities for selling. (Accounting information system by James A. Hall 2006), the advocates will propose a computerized payroll system. It will save time, produce faster results, and reduce errors.

A computerized payroll system will not only give accurate payroll calculations and a quick payroll transaction process, but it will also secure data through security implementation and appropriately arrange files provided by a well-designed database, resulting in a paperless environment.

Gboko local government education authority is a government entity overseen by the Benue state universal basic education board (BENUE SUBEB). The LGEA is responsible for meeting the needs of universal primary education on a local level. Because of the need for efficient management of the staff warfare and the and emoluments that are accrued to the staff from the state government as in the monthly salaries, wages, and other benefits received from the work done on a monthly basis, the LGEA has a duty to prepare the payroll of his/her staff to the state headquarters of SUBEB for approval and document and pay details of individual staff is entered manually using biro, pencil, and duplicating papers for making of duplications.

1.2 OUTLINE OF THE PROBLEMS

The government fails to collect the required Tax from the people, bodies, and collaboration, as well as from business firms that are due for Tax payment, due to the manual procedure of collecting Tax and proper documentation of records. The government does not have access to all locations in order to collect taxes from them. Also, due to inconsistencies in the procedure, the actual Tax payment from these bodies may not be determined effectively. As a result, the government suffers a significant loss in revenue collection through tax income service.

1.3 THE STUDY’S OBJECTIVES

This project aims to design and construct a computerized e-tax system, one that will allow all of these bodies to pay their taxes from any location and on a consistent basis.

Another goal of this system is to design a system that will provide:

Individuals and corporations can use this service to register, pay, and file taxes.

Individuals and corporations can now request their Tax Clearance Certificate (TCC) online.

A Customs administration system for its import, export, and cross-border transactions.

Interfaces with the Gboko LGEA and the Companies and Intellectual Property Commission (CIPC) via electronic means.

Reducing the bookkeeper’s effort in processing the payroll slip and payroll form.

Calculating the tax payment owed in an efficient and correct manner.

Creating a well-organized database and implementing strong system security for data security.

1.4 THE STUDY’S IMPORTANCE

The planned technology will aid the Internal Revenue Service and the LGEA, particularly in tax collection and management. It will help to reduce the board’s time and effort in going about and collecting taxes. Through the 2well design database, the system development can accept new features and provide a paperless environment.

This research will assist proponents in improving their ability to construct an understandable computerized system in a simple manner. This will serve as a challenge to the proponents to create a better system.

1.5 APPLICATION AND LIMITATION

1.5.1 Scope

This study is intended to build and implement a computerized payroll system known as an e-Taxation system for BIRDS and Gboko LGEA. It will cover the process of drafting and collecting taxes from employees, cooperatives, and businesses, as well as the management of these records.

1.5.2 RESTRICTIONS

Offline programs are not supported by the proposed computerized payroll system for BIRDS and the Gboko LGEA. It operates solely through the internet or a wireless Area network (WAN).

Other restrictions include:

Initially, there was a lack of funds to support the study and implementation of the.

ii) Professional programmers’ shortcomings, who should have served as a reference point from the design to the implementation stages.

1.6 TERM DEFINITION:

-A computer is defined as an electrical device capable of imputing and outputting data contained in a computer system by management and business studies (1978).

– Payroll: a list of all employees and their salary, including allowances and deductions.

-Salary: This is often a monthly payment for regular employment based on the amount of work completed.

-Shift allowance: This is a payment made to a worker or shift basic.

-Arrivers: this is the accumulation of employee entitlement.

-Rent subsidy: this is the rent paid to an employee for his or her rent age.

This is an allowance given to an employee who is a pictorial representation of information in data processing through the use of symbols.

-Transport allowance: This is an allowance paid to a staff member for his or her transportation to and from work.

SQL is a database payment language that stands for structure query language.

LAN stands for local area network.

A tax is a financial charge or other levy imposed by a state or the functional equivalent of a state on a taxpayer (an individual or legal entity) to fund various public expenses. Failure to pay, as well as avoidance or resistance to taxation, is usually illegal and penalized by law. Taxes can be direct or indirect, and they can be paid in cash or in labor equivalents. Some governments levy essentially no taxation at all, or levy an extremely low tax rate on a specific item of taxation.