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Design and Implementation of Tariff Management Software Using Federal Inland Revenue Service (FIRS) as a Case Study

DESIGN AND IMPLEMENTATION OF TARIFF MANAGEMENT SOFTWARE


ABSTRACT

Tariff management software system is the process of managing, organizing, billing and collecting of finances from an individual, sole proprietor and partnership business owner in a stipulated period of time. Tariff is a compulsory levy imposed on the income or profit of an individual, partnership and corporate organizations for the financing of government expenditure without recourse to a corresponding benefit from Tariff payer. Tariff management provides freeform creation of Tariff controls that will be applied to orders. This research work is aimed at appraising the Tariff collection system in Nigeria taking Federal Inland Revenue Service as a case study. It reviewed the old system, the reasons why a new idea muffed. The operations of the new method were also explained and clearly stated. The methodology adopted in this study is the structure system analysis and design methodology and the programming language used is HTML, CSS, JAVASCRIPT, PHP, SQL and JQUERY. The reason why web programming languages was used is because, it is platform independent and it is a web based application. Based on the findings of this study, recommendations made are that constant monitoring of the activities with the designated Tariff management application, it is necessary to determine their level of compliance while adequate training should be provided for the recruitment of staff to enhance their efficiency and productivity.


CHAPTER ONE

1.1 Introduction

Tariff management provides free form creation of Tariff controls that will be applied to orders. Access Tariff management, the 'Tariff management' link in the administration link list. Note that only administrators and order managers will have access to Tariff management software. Any number of Tariff controls can be created. Each Tariff control has conditions and charges. If an order fits the conditions set in the Tariff rules, the order will be subject to the charges. If an order qualifies for more than one Tariff control, the order would be subject to the charges for all the qualifying Tariff controls. This flexibility is necessary, not only due to the variability of Tariff rates, but also the conditions changing and individual company Tariff perspective.As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the Study. Others are Significance of the Study, Scope of work, Limitation of the Study and Definition Of Technical Terms.


1.2 Background of study

A Tariff is a compulsory levy imposed on the income/profits of an individual, partnership and corporate organizations for the financing of government expenditure without recourse to a corresponding benefit from Tariff payer. Every Tariff imposed on Nigerian companies or organizations needs continual interpretation of its specific application and effect on the various transaction of the organization. The field of taxation changes every moment or every day as announced by the new ruling courts and also as are being made by new government.

The effect of tariff management software is the inability of remitting cheques/cash payment of tariff this comes about when a bank collects FIRS cheques/cash and refuses to remit out rightly. Here the money is diverted for use by the bank forever. The situation is aggregated by the Tariff payer not demanding for his e-ticket or receipt. The detection of the above shoddy deals can be made by the adoption of the following methods:

  1. Know your customers (Tariff payers)
  2. Visit Tariff payers to enquire of their payments
  3. Obtain evidence i.e receipt
  4. Check payment made against web portal
  5. Reconcile with the receiving banks and request for posting immediately when payment is posted, calculate appropriate penalties and interests.

Tariff management system is used to detect and maintain Tariff database of previous years. Track and manage new construction information including Issuing refunds and display Tariff payer refund information. This work targets the monitoring, managing and organizing of individuals, partners and company Tariff payment and maximizes the security for the organization or corporate body.


1.3 Statement of problem

Tariff collection is an important function of the Federal Inland Revenue Service. However, there are some teething problems that inhibit effective and efficient collection system. They are as follows:

  1. Inadequate government regulation on collection system
  2. Delay in remitting Tariffs collected and in some cases outright diversion of Tariffs collected.
  3. Lack of functional equipments to detect frauds.
  4. Lack of proper monitoring) There is no proper accountability of the amount collected by various agents by the government and this brings about apathy among the Tariff payers.

1.4 Aim and Objective of study

The main aim of this study is to develop software that will resolve the stress and difficult involved in tariff payment. In achieving this aim, the new system will accomplish the following Objectives:

  1. To develop reliable software that will solve the existing problems.
  2. To investigate whether people pay Tariff to support the legitimate authority within the requirement of the social contact.
  3. To investigate whether the Tariff to be paid is certain in relation to the amount to be paid for the authority to collect it, the time or period when it is to be collected.
  4. To investigate whether the Tariff system is flexible in federal and democratic country where there are always changes of government.
  5. To facilitate the early remitting Tariffs collected which will eliminate the outright diversion of Tariffs collected.

1.5 Scope of the Study

This research work will concentrate on tariff management, monitoring and tracking system using Federal Inland Revenue Service (FIRS) as a case study. Several methods of collecting Tariffs will be employed by different states. However, this research dwells mainly on the collections system in Federal Inland Revenue Services. Furthermore this work does not require network connectivity as well as detection of virus in a network.


1.6 Significance of study

  1. The need for efficient and effective Tariff collection system makes it imperative that a research of this nature be carried out.
  2. Over the years, citizens have been subjected to harsh and intimidating processes with a view to making money for government especially state level where consultants were hired todo the job of state Internal Revenue Departments.
  3. By undertaking this research, one is privileged to see if the present facilities on the ground are adequate for efficient
  4. Tariff collection or whether there is the need for review. These facilities are in terms of human and material resources.
  5. The Tariff management system gives Tariff payers the moral and legal right to demand for a culture of accountability.
  6. Providing sustainable finance and funding for governance, public and social services and economic development.

1.7 Limitations of the Study

A research of this magnitude cannot be carried out without experiencing some difficulties. This work is not an exception; the following factors posed serious limitation to the research work.
Time constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or did not release at all for security purposes, hence some features intended were not added.


1.8 Definition of terms

Balancing Allowances: Where in any accounting period of a company, the company owing any asset in respect of which it has incurred qualifying expenditure wholly and exclusively for the purposes of operations carried on by it, disposes of that asset an allowance shall be due to that company for that accountancy period of the excess of the residue of that expenditure of the date such asset is disposed of was the value of that asset of that date.

Demand Note: It is a notice asking a Tariff payer to pay after interest and penalty might have been computed.

Real Time: Occurring immediately, this is used for such task as navigation, in which the computer must react to a steady flow of new information without interruption.

Withholding Tariff: An advance payment of income Tariff withhold for the purpose of bringing prospective Tariff payers into the net.

Offshore Company: A company doing business in Nigeria, deriving income from it but not resident in Nigeria.

Tariff Refund: Tariff refund has been defined as money given to a Tariff payer if he/she has paid more Tariffs than he/she ought to have paid in a given assessment.

Tariff Authorities: Tariff authorities are any government entity Oran organization with official responsibility for collecting Tariffs and levies.

Designated Bank: It is a branch of a selected bank zoned to a particular area for the collection of Tariffs.

Provisional Assessment: This is an assessment issued every January to the Tariff payers before returns are submitted to Federal Inland Revenue Office. It is equal to the amount paid in the immediate preceding year when the current assessment will be raised.

Tariff Credit: A Tariff credit is an amount of money a Tariff payer is able to subtract from Tariffs owed to the government.


CHAPTER TWO

2.0 Literature Review

2.1 Introduction

The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …


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TABLE OF CONTENTS

PRELIMINARY PAGES


CHAPTER ONE: INTRODUCTION

  • 1.1 Introduction
  • 1.2 Background of the study
  • 1.3 Statement of the problem
  • 1.4 Aim and Objectives of Study
  • 1.5 Scope of the study
  • 1.6 Significance of the study
  • 1.7 Limitation of the study
  • 1.8 Definition of terms

CHAPTER TWO

REVIEW OF RELATED LITERATURE

  • 2.1 Introduction
  • 2.2 Features of a good tariff system
  • 2.3 Nigerian tariff history
  • 2.4 Structure of tariff
  • 2.5 Tariff authorities
  • 2.5.1 Composition of the board
  • 2.6 Powers and functions of the service
  • 2.6.1 Functions of the service
  • 2.6.2 Technical committee of Federal Board Internal Revenue
  • composition
  • 2.6.3 Joint Tariff Board
  • 2.7 Tariff credit and refund system
  • 2.7.1 Tariff refund
  • 2.7.2 How to claim tariff refunds
  • 2.7.3 Statutory Instrument

CHAPTER THREE

SYSTEM ANALYSIS AND DESIGN

  • 3.1 Introduction
  • 3.2 System Analysis
  • 3.2.1 Detail definition of the problem
  • 3.3 Feasibility Study
  • 3.3.1 Economic Feasibility
  • 3.3.2 Technical Feasibility
  • 3.3.3 Operational Study
  • 3.4 Method of data collection
  • 3.4.1 Observation
  • 3.4.2 Review of case study procedure manual
  • 3.5 Problems of existing system
  • 3.6 Program Structure
  • 3.6.1 Context / Dataflow Diagram
  • 3.6.2 System Flowchart
  • 3.6.3 Program Flowchart
  • 3.7 Systems Design
  • 3.7.1 Input Specification
  • 3.7.2 Output Specification
  • 3.7.3 Database Design Specification
  • 3.7.4 Security Design Specification
  • 3.7.5 System Architecture

CHAPTER FOUR

SYSTEM IMPLEMENTATION AND DISCUSSION

  • 4.1 Introduction
  • 4.2 Justification of programming language
  • 4.3 System requirement
  • 4.3.1 Software requirement
  • 4.3.2 Hardware requirement
  • 4.3.3 People
  • 4.4 System Testing
  • 4.5 Implementation Details
  • 4.5.1 Coding
  • 4.5.2 End User Training and Manual
  • 4.5.3 File Conversion
  • 4.5.4 Changeover Procedure
  • 4.5.5 Commissioning
  • 4.5.6 File Maintenance Module
  • 4.6 Result
  • 4.4.5 Discussion

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

  • 5.1 Summary
  • 5.2 Conclusion
  • 5.3 Recommendation

REFERENCES

APPENDIX A: (PROGRAM SOURCE CODE)

APPENDIX B: (OBJECT PROGRAM)

APPENDIX C: (LIST OF TABLES)

APPENDIX D: (LIST OF FIGURES)


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