DESIGN AND IMPLEMENTATION OF A COMPUTERIZED TAX COLLECTION AND MANAGEMENT SYSTEM

By

Author

Presented To

Department of Computer Science

1.1     BACK GROUND OF THE STUDY:

Governments are as diverse as the people and cultures they serve. But when it comes to keeping a government running through efficient assessment and collection of taxes, they all face the same basic challenges. Whether you’re a county on Florida’s Gold Coast or a republic in Africa emerging from strife and putting comprehensive tax procedures in place for the first time, it all comes down to fair and transparent assessment and valuation of property; efficient, effective billing and collection procedures; and absolute transparency with your most important constituents – the public.

Breakdowns at any point in the system can lead to lower revenue, confusion and perceptions of unfairness. Yet revenue departments face serious internal pressures, since they are often compelled to get the most out of aging or outdated software and hardware systems. It’s the classic chicken-and-egg scenario: You need the best tools in order to get better at managing and collecting taxes. At the same time, how can you afford improved technology without the collecting the appropriate revenue?

Most company now uses computerized payroll system. A computerized payroll system will not only resolve difficult problem but also it will provide fast process and accurate calculation of the salary. According to Dave Rooses (2010) in his article on how payroll system work. In manual payroll system there is so many possible errors that may be encounter but if the payroll is computerized, payroll clerks will not need calculator to compute the salary of the employee. Payroll is the sum of all financial records of salaries for an employee, wages, bonus and deductions. In accounting, payroll refers to the amount paid to employee for services they provided during a certain period of time. (Wiki podia 2005). The employer are required to hold back the part of each employee’s earnings because the money will used for paying the income taxes union dues and medical insurance premiums that is responsible of the employee. (Fundamental financial and managerial accounting concepts published by mc grave-hill international edition).

Payroll processing is actually a special- case purchases system in which the organization purchases labor rather than raw materials or finish goods for resale. (Accounting information system by James A. hall 2006), the proponents will propose a system that is entitled computerized payroll system. It will save time, produce faster result and will lessen the errors.

A computerized payroll system will not only provide accurate calculation and fast process of payroll transaction but it will secure data through security implementation and accordingly arrange files provided by a well designed database that will produce a paperless environment.

Gboko local government education authority is a government establishment under the supervision of Benue state universal basic education board (BENUE SUBEB). The LGEA is to carter for the needs of universal primary education at the local level. The need for the efficient management of the staff warfare and the and emoluments that are accrue 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 have 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 duplicate copies.

1.2     STATEMENT OF THE PROBLEMS

Due to the manual process of collection of Tax and proper recording of records, the government fails to collect the appropriate Tax from the people, body, and cooperation also from business firms that are due for Tax payment. The government cannot access all the location to collect Tax from them. Also because of inconsistency in the process, the actually Tax payment might not be calculated effectively from this bodies. Therefore, making the government loss so much in the revenue generation from the Tax income service.

1.3     OBJECTIVES OF THE STUDY

This study is intended to design and develop a computerized e-tax system, a system that will allow all this bodies to pay their Tax from their location and pay consistently.

 Specifically, other objective of this system is to develop a system that will provide:

i.                   A registration, payment processing and tax filing facility for individuals and businesses.

ii.                 Provision for individuals and corporate bodies to request for their Tax Clearance Certificate (TCC) online.

iii.              A Customs management system for its import, export and cross border activities.

iv.              Electronic interfaces with the Gboko LGEA and the Companies and Intellectual Property Commission (CIPC).

v.                 Minimizing the effort of the book keeper in processing the payroll slip and payroll form.

vi.              Making an efficient and accurate computation of Tax payment due.

vii.            Creating a well-arranged database and to implement strong security of the system for data security.

1.4     SIGNIFICANCE OF THE STUDY

The proposed system will help the internal revenue commission board and the LGEA especially for Tax collection and management. It will help to lessen the time and effort of the board in moving around and collecting Tax. The system develop can accommodate changing features and produce a paperless environment through 2well design database.

This study will help the proponents to enhance the ability on how to create an understandable computerized system in an easy way. This will serve to the proponents as a challenge to do a better system. 

1.5     SCOPE AND LIMITATION

1.5.1 Scope

This study is designed to develop and implement a computerized payroll system which will be called an e-Taxation system for BIRDS and Gboko LGEA, it cover the process of preparing and collecting of Tax from employee, cooperation and business firm and management of this records

1.5.2   LIMITATION

  The proposed computerized payroll system for BIRDSand the Gboko LGEA does not support offline program. It only uses the internet or the wireless Area network (WAN)  for its operation.

Other limitations are as follows:

i) Lack of fund to sponsor the research and implementation of the at the initial time.

ii) Inadequacies of professional programmers who should have been used as reference point at the design stage through the implementation stages.

1.6     DFINITION OF TERMS:

-Computer is management and business study (1978), defined a computer as an electronic device that is capable of imputing and outputting stored in the computer system.

- Payroll: list of employees and all their and salaries including their allowance and deductions

-Salary: this is usually a monthly payment for regular employment   that on his / her work done.

-Shift allowance: This allowance paid to worker or shift basic.

-Arrivers: this represents the accumulation of staff entitlement.

-Rent subsidy: these represent the rent given to an employee for his or rent age.

This is the allowance granted to an employee who it s a pictorial represent of information in data processing means of symbols.

-Transport allowance: this is allowance given to a staff for his transportation to work.

SQL: structure query language a database payment language.

LAN: local Area network.

Tax is a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state to fund various public expenditures. A failure to pay, or evasion of or resistance to taxation, is usually punishable by law. Taxes consist of direct or indirect taxes and may be paid in money or as its labour equivalent. Some countries impose almost no taxation at all, or a very low tax rate for a certain area of taxation