DESIGN AND IMPLEMENTATION OF A COMPUTER BASED INCOME TAX

By

Author

Presented To

Department of Computer Science

DESIGN AND IMPLEMENTATION OF A COMPUTER BASED INCOME TAX 

 (A CASE STUDY OF BOARD OF INTERNAL REVENUE ENUGU)

ABSTRACT

This project topic is going to be research to know how computer help in income tax appraisal for small business   Operations. Like its mode of operation, its needs and how it help in solving problem in income Tax Appraisal system for small Business operators.

Tax Administration as know is done through various bodies and agencies.

This project also deals with the way computer provides a basis for an effective storage, update retrieval and general management of their records which means that it help in solving problems in the income Tax Appraisal system for small business Operators as;

1.       Lack of complete knowledge of the taxable population of the state.

2.       Tax evasion and avoidance

3.       Lack of training for the officials of the broad and non-utilization of available information.

4.       Lack of documents.

          It also help to know how often tax are collected, the amount received from each individual and property and the total generated.

          This project work is organized in chapter with topics and sub topics.

          The first chapter of this work introducer the general view of the topic: the objective purpose and scope of the study were also explicitly stated.

          The second chapter throws light on the literature

          The third chapter deals with the description and analysis of the existing system overview of the existing system also the input, output and process analysis were stated.

          The fourth chapter deals with the design of the new system.

          The fifth chapter deals with the implementation, here program flowchart were X-drayed there.

          The sixth chapter is a documentation of how to run the program and how to have it on the system.

          The seventh chapter focuses on the recommendation and conclusion for further studies.

TABLE OF CONTENT

Title Page

Certification

Acknowledgement

Dedication

Abstract

Table of Contents                                                         

CHAPTER ONE

INTRODUCTIONS

11 Background of the study  

12     Statement of the problem

13            Purpose of the study

14            Objective of the study

15     scope of the project

16     Limitations of study

17            Assumption of study

18            Definitions of  terms 

CHAPTER TWO

Review of related Literature

CHAPTER THREE

Description and Analysis of the existing system 

31            General description and analysis of the existing system

32            Method of data collection

33            Objectives of the existing system

34     organizational structure

35     input process and output analysis

36     information flow diagram

37     problem of the existing system

38     justifications for the new system

CHAPTER FOUR

Design of the new system

41            Output specification and design

42            Input specification and design

43            File design

44            Procedure chart

45            System flowchart

46            System requirements

CHAPTER FIVE

IMPLEMENTATION OF THE NEW SYSTEM

51     Program design

52     Program flow chart

53     Pseudo code

54     Source listing

55            Test run

CHAPTER SIX

DOCUMENTATION

61            System Description

62            Program Description

63            User quide

CHAPTER SEVEN

CONCLUSION  AND RECOMMENDATION

71            Conclusion

72            Recommendation

BIBLIOGRAPHY

CHAPTER ONE INTRODUCTION

          The Nigeria economy is in crisis The situation has been made wise by sanctions imposed on Nigeria by leading western Nations to force a return to democratic rule These developments had it telling effect on the states The states government are particularly in hardest hit due to the reduction in their percentage share of the national revenue in federation account itself

          For some time now government have geared efforts towards minimizing her dependence on oil revenue Two study groups are set up in 1991 to review the entire tax system to enhance its efficiency and revenue field

          The importer government attaches to taxation has made it, that no annual budget is ever complete without introduction one tax measure or the other The preventing situation of the state government has created an atmosphere of deep reflection and imagination in their attempt to booster and accelerate their internal revenue capacity

          The Board of internal Revenue, Enugu state have thus been reduced to an empty shall of what an ideal revenue board ought to represent input by government to the collection cost is virtually zero, but would want tax authorities to perform miracles The life style/behaviour of the big shots in government are to say the least embarrassing this apathy by taxpayer tax officials affects yield The entire globe is presently undergoing a technology revolution, which the computer system is at the center of it all This automated machine, have finally introduce a standardized global acceptable information system known as information technology which is applied in various fields of human endeavour as Banks, Hospital, industries, Bill systems information Agencies, Aviation, Budgeting, Revenue collection and control, and if used in the Income Tax appraised system for small business operators, will improve the operation and information system of the Board of internal Revenue in the state

          The Oxford Advanced learner’s Dictionary by way of definition state that Tax is" (SUM OF ) MONEY (TO BE ) PAID BY CITIZENS (ACCORDING TO INCOME, VALUE OF PURCHASES, ect)  TO THE COVERNMENT FOR PUBLIC PURPOSES"       

The  Board of internal Revenue of the state have thus been reduced to an empty shell of what an ideal revenue board ought to represent  Input by government to the collection cost is visually zero, but would want tax authorities to perform march’s

Computerization of income tax  appraisal system for small business Operators will eliminate the manual system of operation in the old system It will encomage quick storage and retrieval of information unnecessary duplication of data, which is witnessed on the old system, will be reduced

11     BACKGROUND OF THE STUDY

the Board of internal Revenue is by law charged with the responsibility for assessing collecting and accounting for all taxes of Enugu state The overall duties of assessment collection and accounting lie with the chairman of Board of internal Revenue and entire officers at both the headquarter and in the field

          Assessment itself involves the art of ascertaining the taxable income of eligible individual and eventual determination of the tax due from the ascertained income

12     STATEMENT OF THE PROBLEM

          In carrying out the duties of Board of internal Revenue there are some problems that are encountered in the income Tax office because of the manual process of handling records and information

SOME OF THESE PROBLMS INCUDE

i        Lack of computer knowledge of the Taxable population of the state

ii       Tax evasion and avoidance

iii      Unco-operative attitude of other government departments and Americas

iv      misconception of the work of the Board and the living style of some of the leaders in government which make the tax paying individuals  to think that their tax is not properly utilized

v       Lack of training for the officials of the board and non-utilization of available information

vi      Lack of documents

          In the course of retrieving information of a particular document time is wasted searching through the heap of the files that contain information required

          Therefore, a computerized income Tax Appraisal system for small Business Operators will improve the quality of information generated in the system

13     PURPOSE OF STUDY

          The purpose of the study is to identify the problems involved in the Appraisal system of income Tax  for small business Operators and hence develop a computerized software to handle them

14     SCOPE OF THE PROBLEM

The task of income Tax Appraisal system varies from state to state The scope of this work is therefore narrowed down to assessment for small business by the board of internal Revenue under auspices of Enugu state, which include the geographical area

15     OBJECTIVE OF STUDY

This project is primarily aimed at developing a computer Based income Tax Appraisal system for small Business Operators that will help in finding ways of making the Tax system effective and putting up measures that will help me government realize adequate funds for its development activities

          To achieve those aims, efforts will be made to

1       Examine the income tax Appraisal system in Enugu state

2       Identify and the problems militating against effective tax assessment activities

3       Analyze the problems and recommend solution for the resolution

 16    LIMITATIONS OF THE STUDY

          the limitations that I encountered in the course of gathering data for the project include, inadequate time and fund for running around for data collection and photocopying of relevant documents and materials required for the successful completion  of the study

          Even if the  financial resources and means were at my disposal time constraint was a crucial limiting factor

17     ASSUMPTION

Some of the assumption taken into consideration for the project work include The staff of handle the new system (computer system) were assumed to have a good knowledge of computer operation for efficient use of the new system

          Another assumption is that the love for computer system as a fact machine for information retrieval and storage will make the (the officials and workers of Tax office) accept the introduction of computer in their operations

          The information received from the customers must be accurate, for effective and efficient use of the new system

18     DEFINTION OF TERMS    

COMPUTER SYSTEM:- A computer is an electronic device which is capable of accepting, processing data, give out information and also have the ability to store data as information

INCOME: Money received during a given period as salary receipts from trade interest form investments etc,

TAB:- Money paid by citizens to the government for public purposes

APPRAISAL:- The act of fixing a price some thing

MANUAL PROCESSING:- Manual processing is any method of data processing that does not involve the computer

DATA:- Data is the term used to describe basic fact about the activities of  a business

DATA PROCESSING: Is the tern give to the process of collecting all items of data together to produce meaningful information

NETWORK: This is a systematic arrangement of computers, where there is a central work done in different computer terminals/workstation