Design and Development of An E-Taxation System: April 2015

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DESIGN AND DEVELOPMENT OF AN E- TAXATION SYSTEM
Article · April 2015
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European Scientific Journal May 2015 edition vol.11, No.15 ISSN: 1857 – 7881 (Print) e - ISSN 1857- 7431
DESIGN AND DEVELOPMENT OF AN E-

TAXATION SYSTEM
Onuiri Ernest E.
Faroun Fikayo
Erhinyeme Ogheneovo
Jegede Ayodeji
Department of Computer Science,
Babcock University, Ilishan-Remo, Ogun State; Nigeria
Abstract
Tax is any form charge levied on a person or an institution by a
governing body or its equivalent such that defaulted payment is punishable
by law. The imposition of taxes and the institution of taxing is as old as
civilization itself cutting across religion, race and continental borders.
Prompt tax payment and reduced tax evasion is always a primary objective
of the government in most civilizations that exist today. The issue of tax
evasion has proven to be a difficult practice to curb even in nations with a
proper database of its citizenry and the current mode of tax payment is
redundant and hectic as ascertained through a survey of our case study. Some
of the challenges governmental bodies have to overcome in order to
encourage the prompt payment of taxes and effectively reduce evasion
includes, developing convenient payment methods and having proper records
keeping systems. This paper is a concise summary of how the continuous
development of computing science and its wide spread ability to be deployed
to solve a wide range of problems can be geared towards the development of
an electronic taxation system to assist government bodies with convenient
tax collection and record keeping. The waterfall methodology was selected
for system development. Goals to be achieved by the system are instant
access, improved productivity through efficient utilization of resources,
database creation and records management, simplification of operations,
reduced processing time, user friendliness, portability and flexibility for
further enhancement. The E-taxation is not a new system, but a rather local
solution to a problem with global purview. This system looks at how tax
payment can be encouraged through simplification and increased efficiency
in payment processing.
53
Keywords: Electronic Taxation; Tax Collection; Tax Monitoring System

and Tax Payment
1.0 INTRODUCTION
According to a world bank economic report on Nigeria published on
the 1st of May 2013, it was stated that 95% of the government’s budgeted
expenditure depended on its projected oil revenue based on current world oil
prices. It was also recommended in the report that the Federal Government,
through the improvement of the domestic tax system it can increase its
internal revenue and provide in the event of a fall in oil prices a financial
backup plan for the economy (The World Bank, 2013). Tax is a charge
imposed by a government on persons, entities or property, administered to
generate revenue for that government (Black, 1999). Tax is a common
source of income generation for financing government activities. Individuals
and organizations are expected to fulfill their obligations on tax payment as
required by law to give the government the financial power, amongst other
purposes of taxation. Effective taxation therefore becomes important as it is a
source of required financial power for a government to rule its territory.
There are two forms of taxation common to most countries, direct taxes to be
paid by the tax payer on his income, profit or asset owned. The other form,
indirect taxes is imposed on commodities before they get to the consumer,
and are to be paid by the consumer not as taxes but as a part of the selling
price per unit of the commodity (Money Control, 2013).
The Nigerian tax system is surrounded by countless problems which
include: Little data available on the history of tax revenues or tax payers due
to a lack of proper records keeping system (Federal Republic of Nigeria,
1997). A lack of comprehensive tax statistics and a centralized database for
the existing ones (Federal Republic of Nigeria, 2002). Deployment of limited
man power and other necessary resources into redundant roles and job
functions (Ariyo, 1997). Duplication of taxes and its negative effect on tax
payers a problem resulting from a clash in the governments’ fiscal
responsibility and its fiscal power (Odusola, 2002). Deliberate attempts by
tax payers to evade taxes (Odusola, 2003). The aim of the e-taxation system
is to provide the tax authority a database with details of taxpayers and their
transactions. This would reduce the issue of tax evasion and hence an
increase in government tax revenue. It would also allow taxpayers process
their transactions online without having to visit the office of the FIRS,
reducing the workload on the resources available to the FIRS and which
consequently give room for the re-allocation of freed-up resources. The
objectives considered during the development of the e-taxation system
include: Creation and management an effective and efficient database to
provide tax payers records, information/bio-data for easy referencing. The
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provision of an alternative payment routes for tax payers so as to encourage

immediate tax payment and provide relief to those who find it an easier and
more efficient payment route. Which will be achieved by creating a web
based system in which registered entities log-in and make payment. The
availability of an alert system that to notify the regulatory body of
outstanding payment by registered entities and workers.
The e-taxation system is to be developed for use by the tax authority
at the federal level for tax payment, record keeping and
educational/awareness programs in under-developed and developing
countries with specific focus on the African continent.
2.0 METHODOLOGY
System development methodology is an aggregate of methods used to
engage in the creation of information systems in a defined, organised and
stepwise manner, requiring stages of the creation cycle from conception to
completion, to be carried out orderly and in the confines of the methodology
being implemented (Geoffrey, 2004). Software development methodologies
include: prototyping, waterfall, rapid application development, spiral
methodology, extreme programming methodology, agile methodology,
iterative and incremental development methodology. The chosen
development methodology for the E-taxation system is the Waterfall model.
The waterfall development model was inspired by older engineering
disciplines (Royce, 1970). It was initially used to develop large scale
functional business systems (Geoffrey, 2004). Software development
methodologies include the definition of deliverables to be created by a
project team to use in the development and maintenance of an application
(Centers for Medicare and Medicaid Services Office of Information Service ,
2008).
2.1 JUSTIFICATION OF METHODOLOGY

The system objectives and review of related systems formed the core
upon which our development methodology was determined. Particular points
to mention that influenced our methodology of choice include:
i. Stable, unambiguous system requirements.
ii. A transaction oriented system.
iii. Clear objectives with a ready to implement solution.
iv. No impending pressure to implement the system.
Based on the above listed points, the Waterfall model was our chosen
development methodology. The Waterfall model is a well documentable,
process oriented development model with timelines, deliverables and
signoffs at designated points of project development.
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3.0 REVIEW OF RELATED WORKS

In the course of this research, extensive review of some tax systems
were carried out in order to identify basic comparisons between our proposed
system and the already existing ones. The systems under consideration are
Her Majesty Revenue and Customs (HMRC), South African Revenue
Service (SARS) and Electronic Federal Tax Payment System (EFTPS).
3.1 HER MAJESTY REVENUE AND CUSTOMS (HMRC)

The HER MAJESTY REVENUE AND CUSTOMS is a department
created by the Commissioners for Revenue and Customs Act (CRCA) on the
18th of April 2005. It was preceded by Inland Revenue
Her Majesty Customs and Excise. It is a source of income for the UK’s
governing body. It helps families and individuals in need of financial support
through payment of tax credits and child benefit. Virtually all UK individuals
and businesses are direct customers of the HMRC. The aim of the system is
tax administration in the easiest and efficient way. It is purportedly created
by crown copyright. Crown copyright covers a range of materials created by
civil servants and government agencies. Copyrights can also come into
Crown ownership through transfer from the legal owner of the copyright to
the Crown (National Archives UK, 2014).
3.1.1 FEATURES OF HMRC

Components and features of the HMRC include the following:
i. PAYE (Pay As You Earn) tax calculator
ii. Statutory payment calculators
iii. A Company car and car fuel benefit calculator
iv. An Employment status indicator
v. A Real Time Information (RTI) system.
3.1.2 OBJECTIVES OF HMRC

Some of the objectives considered and achieved through the
development of the HMRC include:
i. To make it cheaper and easier to pay taxes and claim benefits.
ii. To tackle tax avoidance and evasion.
iii. Availability of Real Time Information (RTI) displaying live statistics
of the system.
iv. To create an easy online registration process for new businesses, by
moving notification of liability for VAT and main direct taxes to
online channels
v. To enforce compliance with tax rules and further investigations on
tax avoidance and evasion.
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3.1.3 LIMITATION OF HMRC

Tax gap, the HMRC system attempts to produce annual reports
containing an estimate and detailed breakdown of this figure which was
found to be inaccurate on certain occasions.
3.2 SOUTH AFRICAN REVENUE SERVICE (SARS)

Designed by ACCENTURE. SARS was designed to encourage
compliance with tax and customs law, doing so in a way that does not
interfere with trading and other economic activities through the imposition of
redundant administrative processes on taxpayers. The construed approach is
to promote conformity based on three steps. Create taxpayer awareness of
their duties, implement a system that encourages the taxpayers to carry them
out, identify and appropriately discipline taxpayers that refute law.
Embedded is a database which contains the amount of continuously active
and consistent taxpayers in South Africa. The intent of SARS is to
continually increase the size of its database and in effect as much as possible
reduce tax gap. With the development of a real-time tax payment information
available, SARS is setup to improve its service to the public and reduce the
cost of service delivery. Accenture through a properly established and
administered public-private partnership has helped SARS develop a new
outlook and confidence by its customers. Employees are increasingly
efficient and improved service. SARS has renewed its workforce motivation
and drive (Accenture, 2014).
3.2.1 FEATURES OF SARS

Components and features of the SARS include the following:
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 South African Department of Home
Affairs (DHA) and the Companies and Intellectual Property
Commission (CIPC).
3.2.2 OBJECTIVES OF SARS

development of the SARS include:
i. To increase the number of tax payers by promoting awareness and
voluntary compliance.
ii. Provision of a convenient means of paying taxes.
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iii. Provision of a customs service that will maximise revenue collection

and facilitate trade.
iv. To provide technical and administrative assistance to the DHA.
v. To verify the tax records of the CIPC and identify companies in the
CIPC database not existing in the SARS database.
3.2.3 LIMITATION OF SARS

People rural areas may find it difficult to access the page due to lack
of internet connection.
3.3 ELECTRONIC FEDERAL TAX PAYMENT SYSTEM (EFTPS)

The EFTPS is owned by both the Financial Management Service
(FMS) and the Internal Revenue Service (IRS), it was launched in 1996. The
EFTPS to date has collected more than $20 trillion in nearly 1 billion
processed transactions with more than 97 percent of all transactions made
electronically. Published IRS data indicates that corporate institutions who
engage the EFTPS are less prone to errors that usually leads to a fine or
penalty than are businesses who deposit their taxes manually.
The Electronic Federal Tax Payment System (EFTPS) is a free
service from the U.S. Department of the Treasury. All federal taxes can be
paid using EFTPS and payments can be made via their Web site, a voice
response system, or special channels designed for tax professionals, payroll
services, and financial institutions. A quick, secure, and accurate, EFTPS is
available by phone or online 24 hours a day, 7 days a week. Corporate
institutions and private individual payments can be organised 365 days in
advance of due date (The IRS, 2014).
3.3.1 FEATURES OF EFTPS

The EFTPS is mainly an online collections service and as such tax
calculations are not conducted by the system. The system therefore lacks
tax calculation abilities.
Components and features of the EFTPS include the following:
i. A Tax Payment Scheduling system with payment instructions for
individuals and businesses
ii. Multi-level security, requiring your employer identification
number (EIN) or social security number (SSN); a personal
identification number (PIN); and an Internet password.
iii. Online cancellations to be made for payments that are
scheduled to occur in two or more business days
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3.3.2 OBJECTIVES OF EFTPS

development of the EFTPS include:
i. To reduce processing cost of Federal tax payments, thereby
reducing the overhead of the Internal Revenue Service.
ii. Maximizing the percentage of tax collections received
electronically by the Federal government.
iii. Making tax payment as convenient as possible at any locations
in country or even outside the country.
3.3.3 LIMITATIONS OF EFTPS

Some of the impedances in the implementation and use of the
EFTPS include:
i. The enrolment procedure is time taking. It requires an Internet
password being mailed to you four days after registration
before using EFTPS for the first time.
ii. Proper internet connectivity is still an issue in certain areas in
the U.S.
iii. The EFTPS does not make provision for calculating taxes, it is
simply a tax payment more like collections service.
3.4 COMPARATIVE ANALYSIS OF REVIEWED SYSTEMS

As expected with system analysis and review, noteworthy highlights
were discovered and the rest of this chapter will be expended in an attempt to
capture these highlights and the roles they played in the proposed system’s
analysis and design.
3.4.1 SIMILARITIES
During the course of review, it was discovered that a larger portion of
the reviewed systems were developed in some sort of public, private
partnership between government bodies and information technology firms.
Also the scope of the systems were limited to the geographical boundaries in
which their governing bodies served. Essential similarities between the
reviewed systems which will be implemented in the proposed system
include:
i. Serving as record keeping instruments that can be used to monitor to
the transparency and efficiency of tax regulatory bodies.
ii. An inclusion of a system that will process financial instruments and
make tax payments easier for tax payers.
iii. SARS and HMRC also serve as means of providing and discovering
the latest news and information on taxes a function which will be
59
included in our system while the EFTPS is strictly a payments

processing system.
3.4.2 DIFFERENCES
The EFTPS has the option of making or scheduling payments
through phone calls, mails and other offline methods not available in other
systems and will also not be included in the proposed system.
i. The HMRC has tax payment calculators with varying complexity.
This tax calculator function depends on data not readily available in
the proposed system’s operational environment. As such this function
will not be included in the proposed system.
ii. SARS interfaces with systems of other governmental bodies in some
symbiotic relationship whereby they provide one another necessary
information required to properly carry out their respective duties.
iii. All three systems cater for all forms of taxation while our system will
cater for only the Company Income Tax and Pay as You Earn.
Further analysis of the existing systems showed that they were
developed with heavy graphic content and media interfaces, thereby
increasing the bandwidth requirements of accessing these systems. The
proposed E-taxation was designed and developed to be significantly text-
based and with minimal graphic content. This will consequently produce two
positive outcomes, as follows:
i. A reduction in its Internet access cost. This is in view of the fact that
developing countries have poor Internet infrastructures. This is can be
proven with data provided NET INDEX in their bandwidth
availability/cost survey, the United States has a speed of 35.15Mbps
costing 3.51 dollars while the United Kingdom has a speed of
30.84Mbps costing 2.43 dollars. African countries like South Africa
has a speed of 7.04Mbps costing 19.06 dollars and Nigeria has a
speed of 5.53Mbps costing upwards 115 dollars. In view of the
foregoing, the proposed system is expected to work efficiently in
such climes without undermining user or system requirements.
ii. An improvement to its search engine optimization. A proper SEO
improves your ranking on the result page of search engines. A top tier
ranking would increase user awareness, trust and accessibility
through search engines which in turn grows traffic.
3.4.3 LIMITATIONS
Also the scope of the systems were limited to the geographical
boundaries in which their governing bodies served also their development
was limited to the level of support provided by the tax regulating body in the
their respective environment. The structure and function of these regulatory
60
bodies were sometimes reflected in these system and as such their limitations
were extended. So also prevailing tax laws and rates in these countries
determined the extent of their functions and adoption.
3.4.4 DEDUCTIONS
The review of closely related works highlighted a common consensus
that developers of the other systems were either employed, contracted or had
the backing of the federal authorities regulating taxes during their system
development. It was also discovered that the structure of their systems, its
functionalities and limitations depended heavily on the tax system created
and regulated by the federal tax authorities. Their systems are largely mock-
ups of existing manual tax systems or institutions in the country of
implementation. On visiting the Federal Inland Revenue Service to ascertain
their level of support we discovered that we won’t have the level of support
required to develop a fully-fledged system to accommodate the entire tax
system, based on this we have limited the objectives of the system to cover
company and Pay As You Earn (PAYE) taxes. The system will require
companies to register their staff on the proposed portal, providing necessary
details pertaining to their earnings which will be used to carry-out and verify
tax claims. This will reduce a lot of paper work currently done by both the
companies and the federal tax authorities. It will also help the FIRS estimate
their monthly and annual incomes. Companies will also allow users to
schedule tax payment before the due date. As a result of the initial
registration companies will be able to estimate the amount due for tax
payment as records of their employee earnings are readily available, it will
also be easier for the FIRS to issue tax clearance certificate to those
requesting it as they’re records of payments will be available and accessible
as needed. News and updates such as changes in tax policy will also be
available on the system and those of particular high importance will be
broadcasted to individual user profiles.
4.0 SYSTEM ANALYSIS

After reviewing related works and presiding on the features and
methodologies to adopt, a follow up in discussing the tools intended for
system design ensued. Adopted methodologies will then be implemented to
create a guide that would aid in the design of the system. The review of
closely related works revealed that some of the core functions of a tax
administrative system should include registration, filing, returns, payments
and audit. Some of these revolve round a sound database and as such it
would be imperative for us to build a database that is highly secured and has
no element of redundancy. The manual processes of the stated core functions
would be re-engineered in a system environment with the output being a “to
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be” process having established the “as is”. As earlier mentioned these
systems were developed in some form of government-private partnership,
hence developing such an advanced system with robust capabilities would
require massive support from the tax authority which is not forthcoming. The
alternative is a scaled down system that accommodates the core functions of
the Federal Inland Revenue Service (FIRS) and serves as a viable alternative
to its customers. The system would significantly reduce the number of
journeys users would have to make to the tax office in processing their tax
payment. Individuals would register on the system via a registration portal,
providing necessary details. On confirmation of the details provided by the
tax authority the administrator would verify the individual’s registration
details and an account will be created. Individuals will have the ability to use
the system to schedule taxes and make payment. For companies the super
administrator will have to create a company account with a single company
administrator. The company administrator in turn then creates accounts for
all the staffs in the company. The company administrator also schedules and
makes payments on behalf of the staffs and can update their details when
necessary. The super administrator will have also a portal that will display
the registration and payment details of all users.
4.1 Features of the Proposed System

This portion provides highlights of the system, its core components
and interfaces. They include:
i. The Home Page: It is the topmost portal that is accessible by all
users of the system. Its redirects users according to the description
to their respective login page.
ii. The Administrative Page: The Admin page is limited in access
and is accessible by only the super-user. It collects information
from the user which it then relates to the database and provides
access to the system upon validation. Figure 1 shows the use case
diagram of a user with access to the administrative page, the
actions he can perform and the views available to him/her.
iii. The Company Page/Profile: The Company page or profile is
created by the administrative user, it is also limited in access to
specific users, and the users of the company page are at an
administrative level compared to their employees. It collects
information from the user which it then relates to the database and
provides access to the system upon validation. Figure 2 shows the
use case diagram of a user with access to the company page, the
actions he can perform and the views available to him/her.
iv. The Individual Page/Profile: The employee page is created on the
company page after a successful registration and validation of
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details with the tax authorities. Figure 3 shows the use case
diagram of a user with access to the individual page, the actions he
can perform and the views available to him/her.
LOG IN
ADDS
COMPANY
ADMIN
VALIDATES
REGISTRATION
VIEWS
PAYMENT
VIEWS ALL
USERS
LOG OUT
Figure 1: The Super Administrator
LOG IN
ADDS
EMPLOYEES
SCHEDULES
AND MAKES
PAYMENT
DELETES
EMPLOYEESS
EDITS
EMPLOYEE
DETAILS
LOG OUT
Figure 2: The Company Administrators
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REGISTERS
LOG IN
SCHEDULES
AND MAKES
PAYMENT
EDITS
DETAILS
LOGOUT
Figure 3: The Individual’s Use Case Diagram
4.2 DESIGN OF THE PROPOSED SYSTEM

The E-taxation’s system design will be represented diagrammatically,
using the descriptive Unified Modelling Language (UML). The Unified
Modelling Language is a specific purposed concept in software engineering,
which is intended to provide a consistent visualisation of a system’s design.
It was conceptualised and generated by a group consisting of three persons
namely; Grady Brooch, Ivar Jacobson and James Rumbaugh between 1994
and 1995 (Grady, 2005). It was inculcated and managed by the Object
Management Group (OMG) in 1997 as a standard. In the year 2000 the
Unified Modelling Language was also adopted as a standard by the
International Organization for Standardization (ISO). Since then it has been
periodically revised to cover the latest version of UML (International
Organization for Standardization, 2015).
The UML offers a way to visualize a system’s architectural blueprints
in a diagram, elements such as:
i. Activities (jobs)
ii. Individual components and their interaction
iii. How the system will run
iv. How entities will interact with other components and interfaces
v. External user interfaces (Object Management Group, 2015)
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4.2.1 ENTITY RELATIONSHIP DIAGRAM
Figure 4: Entity Relationship Diagram
4.3 Hardware and Software Requirements

We’ll be stating the hardware and software requirements essential to
the proper running of the system.
4.3.1 HARDWARE REQUIREMENTS

i. An intranet or internet network
ii. A processor with a minimum of 2.5 GHz processing capability
iii. 1024 MB RAM
iv. 100MB of hard disk space
4.3.2 SOFTWARE REQUIREMENTS

i. A Windows vista, 7 or 8 operating system.
ii. SVGA graphics
5.0 SYSTEM IMPLEMENTATION AND TESTING

This section is chiefly the implementation of the application and
testing for issues and non-functional properties such as speed and robustness.
65
The test is simply the execution of the implemented application with sample
data to ensure that all specified objectives have been met appropriately in
order to ensure a high quality, user friendly application. The different tests to
be carried out would be expatiated further in the subsequent sections.
5.1 COMPONENT AND SYSTEM TESTING

This approach aims at testing elementary units of an interactive
system. Individual components that make up the system are tested to ensure
that the system is completely free from errors. System testing can be
described as a series of tests administered on a complete system to ascertain
the system's alignment with decided objectives.
5.1.1 DATABASE TESTING

A database is a collection of logically related data. Also, these data
are dynamic information required by the system. Each table in the database
holds closely linked fields that are guided by a set of rules and constraints
limiting the type of data stored in them. The Database Management System
(DMBS) avoids abuse and misuse by ensuring that these checks aren’t
violated. Our E-Taxation System database is made up of 24 tables and each
table contains the name of the fields, data types, sizes and other constraints
that define the table. Below are few screenshots of each table along with a
brief explanation.
Figure 5: Company Administrator table
Figure 5 shows the company administrator database table and this

contains the login details of all those authorized to access the company
administrator section of the website. The table keeps track of the id,
username and password of each administrator.
Figure 6: Bank Report table
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Figure 6 shows the bank_report database table and this contains and
generates a monthly report detailing all the transactions carried out by each
user of the system.
Figure 7: Salaries table
Figure 7 shows the salaries database table which contains how much
each staff in an organization earns.
Figure 8: User table
Figure 8 the user database table contains information about the users
of the system.
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Figure 9: Staff members
Figure 9 shows the staff_members database table which contains all

the necessary details required to calculate the tax to be paid by users.
5.2.2 INTERFACE TESTING

Interface testing is the process of testing our electronic taxation
system’s graphical user interface to enforce compliance with specified
objectives in terms of ease of access and user friendliness. Interface testing
was also done to check whether the constituent modules are communicating
properly. The interface test of the E-taxation system was conducted using the
Black Box Testing technique. It is also known as Functional and Behavioral
testing and its result is preconditioned on the examination of the system’s
specification without regards to internal processes. This technique was
selected based on the fact that it is generally undertaken by individuals
without prior knowledge or information of the system’s processes or
workings, especially since one of the primary objectives of the system is to
ensure easy usage (Clarke, 1998).
Figure 10: Home Page
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Figure 10 displays the system’s landing page which provides the

logon facility for the administrative user.
5.2.3 LOGIN MODULE TESTING

Previously conducted and concluded system analysis prescribed
access denial for logon activities without validated credentials and therefore
it was concluded that an appropriate examination for the login module would
be attempted logon processes with invalid credentials.. The image below
shows the output of the test a user attempts system access with invalid logon
credentials.
Figure 11: Error page
Figure 11 shows the error thrown by the system in the event that the
login information provided by any user is incorrect.
Figure 12: Welcome page after successful login.
Figure 12 details the message displayed by the system upon

successful user logon.
69
Figure 13: Modules
Figure 13 shows the 5 available modules for the company administrator

to work with. Which are:
i. Entries
ii. Basic Salaries
iii. Monetary
iv. Process
v. Report
Figure 14: Entries Module
Figure 14 shows the Entries module which allows you enter starting
information for staff members, banks, departments and sub-departments in
the organization, designations (positions in the organization) etc.
70
Figure 15: Basic Salaries Module
Figure 15 shows the Basic Salaries module which allows you to input
basic salaries for different positions in the organization.
Figure 16: Monetary Module
Figure 16 display the monetary module where you manage

allowances (earnings) and deductions.
Figure 17: Process Module
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Figure 17 shows the Process module which is used to process tax

payment that covers staff salary.
Figure 18: Reports Module
Figure 18 shows the Reports module allows you to view and print
reports of the financial activities of the organizations. This is where you see
the tax deductions of employees reflected in their pay slip which you can
print if you want to. Also, the company’s Tax is also shown here if you go to
Payroll.
5.2.4 SYSTEM TESTING

This is the integration of multiple system components and in turn
functions and features. This is followed by a performance test of the
integrated components in multiple runs. The outcome of such testing method
is the conception of what is a seemingly isolated but is in fact an actual
group test on the integrated components. It is in two major phases:
i. Integration testing
ii. Release testing
5.2.5 INTEGRATION TESTING

Integration testing is system building from its components and
examining the outcome of component integration for issues that may result
from the integration and interaction of system component. This sort of
testing is chiefly composed of a fault test and defect discovery in the
developed system. System integration includes the identification of
component clusters that conduct specific system functionality and coupling
them through the addition of codes that make them function together. We
shall consider the administrator page for this test. The administrator is
responsible for:
i. Adding staff.
ii. Editing staff details
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Figure 19: Adding and editing staff details.
Figure 19 shows the Staff add and Staff edit page, containing input
fields that would hold staff information.
Figure 20: Staff added successfully message
Figure 20 displays the message that would be shown upon the

successful addition of each staff.
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Figure 21: Staff exist error message
Figure 21 shows the error message that would be displayed if a staffs’

details already exist in the database.
6.0 DISCUSSION OF RESULTS

During the course of our research we realized that building an E-
taxation system is a rigorous task. Furthermore, this research project has
exposed us to the importance of simple and yet attractive design. The design
allows users to easily navigate the site and carry out tasks with minimal
hindrances. Being able to access the E-taxation system even under poor
network conditions will greatly improve the usefulness of the system. An
attractive layout also ensures that the user does not get bored while using the
system. The appearance of the E-taxation system has to be catchy and should
appeal to the senses of the user. The software is developed using HTML and
CSS as front end and MySQL as back end in Windows environment. The
goals that are achieved by the web application are instant access, improved
productivity, optimum utilization of resources, efficient management of
records, simplification of operations, less processing time and getting
required information, user friendly, portable and flexible for further
enhancement.
The project has been completed successfully with the maximum
satisfaction of users. The constraints were met and overcome successfully.
The system, developed as decided in the design phase. The project gives
74
good idea on developing a full-fledged application satisfying the user

requirements.
The system is very flexible and versatile. This web application has a
user-friendly screen that enables the user to use without any inconvenience.
The application has been tested with live data and has provided a successful
result. Hence the software has proved to work efficiently.
6.1 SUMMARY
The E-Taxation system offers multiple solutions to both sides of the
taxation system. The tax collector’s job is more effectively carried out as
access to data required to determine the volume of taxes currently paid is
readily available and can confidently estimate deficits. The tax organization
is seen as more transparent and effective in carrying out its duties as it has
records to support stated facts in its report. The tax payers in general are
more receptive to taxation as the whole process is convenient and flexible. It
doesn’t require visits to the tax office. Even the government as a whole
would benefit from the implementation of this system as it would have the
ability to properly prepare its budget based on expected income, since it has
historical records and a database showing payments trends. The system can
also be used by the government to measure the level of the public’s reception
of changes in tax laws, rates and their responses to the changes.
6.2 RECOMMENDATIONS
The system meets desired expectations but would perform better if
the following recommendations and suggestions are considered:
i. The software is designed to accommodate the needs of its scope of
study and as such implementation outside this scope could be limited.
But bearing in mind possible implementation outside the defined
scope of study, it was developed using Object Oriented Programming
concepts and as such can easily be modified to accommodate the
needs of implementation environment.
ii. The E-taxation system can also be interfaced with other
governmental agencies and institution to furnish them with
information that wouldn’t necessarily be available to them.
iii. The E-taxation system should be implemented in a secured server
environment as it contains several important information about its
users.
iv. The E-taxation system can also be used by the government provide
more accurate estimates about the income pattern of its citizens and
their response to the implementation of new tax policies.
75
6.3 FUTURE RESEARCH

The software can be enhanced further to include multiple modules as
its initial development system is in view of the future, for example its
database can be interfaced with the database of other governmental
institutions and they can have access to the information it provides. It can
be employed for the purpose of research. Also it’s important to keep abreast
of the latest software and network security protocol so as to properly secure
the information of users. Biometric means of system access would also be
highly beneficial as it would increase the user convenience.
6.4 CONCLUSION
The E-taxation is not a new system, but a rather local solution to a
problem with global purview. This system looks at how tax payment can be
encouraged through simplification and increased efficiency in payment
processing. Individuals can depend on this platform to carry out their duties
as citizens.
References:
Accenture. (2014, June 28 ). Success Revenue Service South-Africa
Customer Relationship. Retrieved from Accenture:
http://www.accenture.com/us-en/Pages/success-revenue-service-south-
africa-customer-relationship-summary.aspx
Ariyo, A. (1997). Productivity of the Nigerian Tax System: 1970-1990
AERC Research Paper 67. Nairobi: African Economic Research Consortium.
Black. (1999). Black’s Law Dictionary (Seventh Edition). West Group.
Centers for Medicare and Medicaid Services Office of Information Service .
(2008, March 27). Selecting a development approach. United States
Department of Health and Human Services (HHS).
Clarke, J. M. (1998). Automated test generation from a Behavioural Model.
Pacific Northwest Software Quality Conference. IEEE Press.
Federal Republic of Nigeria. (1997). Report of the Vision 2010 Committee.
Abuja, Nigeria.
Federal Republic of Nigeria. (2002). Personal Income Tax Act 1993(1993
No. 104): Operation of Pay As You Earn (PAYE) Regulations 2002 Official
Gazette. Federal Ministry of Finance Abuja.
Geoffrey, E. (2004). Global Business Information Technology: An Integrated
Systems Approach. Pearson Education.
Grady. (2005). Unified Modelling Language User Guide The Second Edition
. Addison-Wesley.
International Organization for Standardization. (2015, February 26). [16]
ISO/IEC 19505-1:2012 –Information technology–Object Management
Group Unified Modelling Language (OMG UML)–Part 1: Infrastructure.
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Retrieved from ISO:

www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm%3Fcsnum
ber%3D32624
Money Control. (2013). Advertising. Retrieved from Money Control:
moneycontrol.com/news/advertising/defined-directindirect-
taxes_822695.html
National Archives UK. (2014, June 28). Retrieved from The National
Archives: www.nationalarchives.gov.uk
Object Management Group. (2015., February 26 ). Unified Modelling
Language (OMG UML), Superstructure. Version 2.4.1. Retrieved from
OMG : http://www.omg.org/spec/UML/2.4.1/Superstructure/PDF
Odusola, A. F. (2002). Kwara State Public Expenditure Review: A Technical
Report on State Public Expenditure Review in Nigeria Submitted to the
World Bank. Abuja.
Odusola, A. F. (2003). Internally Generated Revenue at the Local
Government: Issues and Challenges. Ibadan.
Royce, W. W. (1970). Managing the development of large software systems.
The IRS. (2014, June 28). EFTPS The Electronic Federal Tax Payment
System. Retrieved from IRS: http://www.irs.gov/uac/EFTPS-The-Electronic-
Federal-Tax-Payment-System
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77
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DESIGN AND DEVELOPMENT OF AN E- TAXATION SYSTEM

Article · April 2015

The user has requested enhancement of the downloaded file.

DESIGN AND DEVELOPMENT OF AN E-

Keywords: Electronic Taxation; Tax Collection; Tax Monitoring System

provision of an alternative payment routes for tax payers so as to encourage

2.1 JUSTIFICATION OF METHODOLOGY

3.0 REVIEW OF RELATED WORKS

3.1 HER MAJESTY REVENUE AND CUSTOMS (HMRC)

3.1.1 FEATURES OF HMRC

3.1.2 OBJECTIVES OF HMRC

3.1.3 LIMITATION OF HMRC

3.2 SOUTH AFRICAN REVENUE SERVICE (SARS)

3.2.1 FEATURES OF SARS

3.2.2 OBJECTIVES OF SARS

iii. Provision of a customs service that will maximise revenue collection

3.2.3 LIMITATION OF SARS

3.3 ELECTRONIC FEDERAL TAX PAYMENT SYSTEM (EFTPS)

3.3.1 FEATURES OF EFTPS

3.3.2 OBJECTIVES OF EFTPS

3.3.3 LIMITATIONS OF EFTPS

3.4 COMPARATIVE ANALYSIS OF REVIEWED SYSTEMS

included in our system while the EFTPS is strictly a payments

4.0 SYSTEM ANALYSIS

4.1 Features of the Proposed System

Figure 1: The Super Administrator

Figure 2: The Company Administrators

Figure 3: The Individual’s Use Case Diagram

4.2 DESIGN OF THE PROPOSED SYSTEM

4.2.1 ENTITY RELATIONSHIP DIAGRAM

Figure 4: Entity Relationship Diagram

4.3 Hardware and Software Requirements

4.3.1 HARDWARE REQUIREMENTS

4.3.2 SOFTWARE REQUIREMENTS

5.0 SYSTEM IMPLEMENTATION AND TESTING

5.1 COMPONENT AND SYSTEM TESTING

5.1.1 DATABASE TESTING

Figure 5: Company Administrator table

Figure 5 shows the company administrator database table and this

Figure 6: Bank Report table

Figure 7: Salaries table

Figure 8: User table

Figure 9: Staff members

Figure 9 shows the staff_members database table which contains all

5.2.2 INTERFACE TESTING

Figure 10 displays the system’s landing page which provides the

5.2.3 LOGIN MODULE TESTING

Figure 11: Error page

Figure 12: Welcome page after successful login.

Figure 12 details the message displayed by the system upon

Figure 13: Modules

Figure 13 shows the 5 available modules for the company administrator

Figure 14: Entries Module

Figure 15: Basic Salaries Module

Figure 16: Monetary Module

Figure 16 display the monetary module where you manage

Figure 17: Process Module

Figure 17 shows the Process module which is used to process tax