Proposal

Online registration for tax payers

Name ID

SAMUEL MEKASA MICHAEL IT/1504/01

Submitted to: Ato BRIHANE

Date December, 2011 G.C.

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1) Introduction....................................................................................................................2
2) Back ground of organization...........................................................................................3
3) Organizational structures.................................................................................................4
4) Types of tax....................................................................................................................5
5) Statements of problem...................................................................................................5
6) Scope of the project........................................................................................................6
7) Limitation of the project.................................................................................................6
8) Requirements...............................................................................................................6
8.1 Functional requirement............................................................................................6
8.2 Non functional requirement.....................................................................................7
9) Objective of the project...................................................................................................7
9.1 General objectives.................................................................................................8
9.2 Specific objective of the problem..........................................................................8
10) Methodologies...............................................................................................................8
10.1 Data collection.......................................................................................................8
11) Systems Design and development.................................................................................9
12) The tools used to develop the project............................................................................9
13) Work break down..........................................................................................................9
14) Schedule of the project...............................................................................................10
14.1 Gantt chart...........................................................................................................10
15) Application of the project............................................................................................11
16) Cost required for the project........................................................................................11
17) Reference.....................................................................................................................11

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 1) Introduction
The tax payment is one way of government income. There are many types of
tax payment. The Value Added Tax (VAT) payment is one types of this. Such
a like tax payment is accomplished when merchants or any one who has
capital greater than or equal to 500,000 in his or her business and add 15%
of extra cost on their service of product to user. So, to pay such like tax
every one assumed to pay such like tax is enforced by government to be
registered as VAT payers. So, to be registered every one should have to got
to the state revenue office.

The project is targeted to solve such problem by performing the possibility of

web based registration. This like registration is kjkperformed by creating web
page for state revenue authority office and announcing the address for every
TAX payers. The project is expected to solve the problem of the current
system of the state of the organization and benefits the both state revenue
authority Vat tax payers.

2) Back ground of organization

Today's Tax Administration Authority was a department in SNNPR Finance and
Economic Development Bureau, called Revenue Department. It was grouped into two
teams called Tax Assessment Team and Tax collection Team.

But after the mid 2002/1994EC, it was organized at the level of office as Revenue bureau
consisting of three departments.
1. Tax Assessment and follow up department
2. Tax collection and follow up department
3. Revenue Plan, Study and information department

In the zones, it was organized within Finance and Economic Development

Main Department as a Desk and at the city and Woreda level, it was organized in its
own Office. Within these organizations, the office has defined its duties and
responsibilities. However, after the beginning of 1998 EC/2006/, since the Regional
government has given great attention for the Revenue sector, the office is organized at
Authority Level consisting of three departments

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 These are:

Tax Operation department,

Intelligence and Investigation department
IT Administration department

These departments provide the following services:

1) Plan, Study and Civil Service Reform service,

2) Administration and Finance service,
3) Legal service
4) Public Relation, Tax payers Education & Trainee services

3) Organizational structures
The SNNNPR state revenue authority are divided into three main departments which
are called
1) Core process that includes
Tax payer registration and tax collection
Intelligence and investigation
Tax payers education, Training and Revenue study
Tax payers Record office

2) Support process which includes subgroups

Plan, follow and feed back
Information Technology Administration
Human resource management
Purchase, Finance and Property Administration

3) Internal Auditor

These three main departments and subdivision for the department of SNNPR state
revenue authority has their own work.
Generally when we structure the SNNPR state revenue authority using diagram it
likes the following diagram.

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Fig 1 Structure of SNNPR state revenue authority[i]

4) Types of tax

Generally, tax consists of two main parts: Direct Tax and Indirect Tax
1. Direct tax consists of:
personal income
profit income tax
interest income
profit tax
2. Indirect tax consists of:
value added tax (VAT)
exercise tax

This project is focuses on Indirect tax payment system especially in to VAT tax payers.

5) Statements of problem
Two years ago, the Ethiopian Government decided that each commercial entity
with a capital greater than or equal to Birr 500,000 should add 15% VAT to the
cost of the goods or services they sell to users. This VAT is collected by the
government. So, any merchant with capital greater than or equal to Birr 500,000 is
registered as VAT payer.
Currently, each vat payer should go to the office of state revenue authority to pay
the tax. This method costs the tax payers extra money and time; moreover, also it
is painstaking for both the tax payers and employees of the Revenue Authority.

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 This project attempts to solve this problem by creating the possibility of online
registration of the VAT payers.

The project is targeted to:

To solve the current system problem of the organization by creating the possibility
of the web based registration. This can be accomplished by creating web page for the
state revenue authority .This web based registration benefits both VAT task payers and
state revenue staff.

It reduces the effort and cost of individual tax payers by making it possible for each
and every tax payers to register from his/her home or any other place using the computer
network. With this system, one need not go to the office of the state revenue authority to
be registered.
It increases the efficiency and accuracy of the revenue authority staff. This system will
make registration of tax payers faster and less error-prone as it is automated and done
online; retrieval of data/information will also be much quicker than the current manual
system.

6) Scope of the project

The project will include online registration of new tax payers and design data base
for the storage of the information. It will have a web-based system for its front end

The designed web site should contain necessary information that are needed for tax payer
including such as name, location, address amounts of capital and what types of business
he/she runs and any necessary information. The second par or the backend of this project
includes database authorized by state revenue authority that is used to store information
about the tax payers.

7) Limitation of the project

This project is about online registration; it does not deal with online tax payment because to carry out
online tax payment system, it is so complex and very costly. It is very tricky to implement because it need
very high security such as validation of .credit card, protecting or credit card information from the third
person (hacker) and requires such authentication systems such as digital certificate or Secure Socket Layer
(SSL), Secure Electronic Transaction (SET), 3D secure to make secure money transaction but it is difficult
because of time and knowledge limitations on the part of the author.
And also to control money supply and stability and hence complicates implementation
of monetary policy.
Another reason why tax payment is not included in this project is because most of the tax
is collected from rural area specifically from farmer and small business merchants.

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The organization has software called Standardized Integrated Government Tax
Administration System (SIGTAS) to calculate tax. So, from project not expected to
calculate the tax and tell the amounts of the tax they have to pay.

8) Requirements
To design this project there are functional requirement such as system administrator,
Information transaction process, Database manager and also non functional requirement
is required. Both functional and non functional is listen below

8.1 Functional requirement

System administrator

Typically, this system should require a high level of professional education for
those people who administer the database and moderately computer literate users
to use the web. Thus, the database administrators and users should undertake
training commensurate to their job requirements.

Information transaction process

Components that this system includes are:

Web site which contains some information about the state revenue and form to fill
information about the tax payers, like the name of the organization, its capital, tax
type, the back ground of the organization.
High speed network is also required to facilitate the transaction of the information.
A Data base which contains basic information about the tax payers. The data base is
the most important component in this project because the online information
submitted should be stored in the database of the state revenue authority.

Database manager

The database manager is tasked with the storing and managing already stored
information in the server. The database manager should have training about
database.

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 8.2 Non functional requirement

Give an orientation to the people as they can access the state revenue authoritys web
site and perform their registration through the web site rather than go to the office.
The web page which contains information of state revenue should be accessible
by each and every people who want to register on their web site to pay tax.
The information entered into the web site should be stored in the database of the
state revenue authority.
The information stored in data base should be accessible by the data base
manager of the state revenue.

9) Objective of the project

The current system of the state revenue authority is manual that mean they use pen and
paper to register every VAT payer and the tax payer also should go to the office to be
registered. This project is target to solve such problem of the organization by creating
web based registration for VAT tax payers. The objective of the objectives the project is
like the following

9.1 General objectives

The general objective of the project is analyzing the problem of the system of the state
revenue authority and providing a solution to the problem.

9.2 Specific objective of the problem

Specifically the project is targeted to the online registration of VAT tax payer that is used
to reduce the extra cost, reducing the effort, make fast and efficient work than the current
registration system. As mentioned in the state revenue and system design section above,
this system can be accomplished with two main tasks that are database and web site. So,
every one who is expected to pay this tax can be registered from his/her home or any
other place by using a computer connected to the Internet or other device such as mobile.

10) Methodologies
This project will be carried out as per the methodology outlined under.

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 10.1 Data collection
To know the background of the organization and objective, mission, vision, as well as
the previous system has been using, the current system the organization is using and the
future system which is planned to use.
The methodologies I used to collect this data are: asking Oral question to the state
revenue authority of the SNNPR, interview with the SNNPR state revenue authority to
know their current system and search through internet to compare their system and my
project idea.
Another methodology I use is formal paper from my department to ask the organization
permission to give me appropriate information regard to my project

11) Systems Design and development

In the design phase of the project, the following general procedures will be followed.

Information to be entered into the web page will be defined and the interface of the
web page will be determined.
All attributes and entity that define the database will be listed and their relationships
defined.
The relation between the webpage and the database will be defined clearly and the
flow of information from web page form to the database will be clearly determined.
In the implementation phase, the program that can relate the website and database
will be developed. Finally, f the program will be tested by inserting data in the form
of the web and checking if the data has actually been stored in database.

12) The tools used to develop the project

The tools that are used in this project are: Notepad, PHP and XAM for design
website, MYSQL for data base, Computer, network (Internet), pen and paper.

13) Work break down

This project will undergo through the following phases.

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 1) Planning the project (completed)
1.1) choosing the title
1.2) studying the existing system
1.2.1 Studying limitation of the existing project
1.2.2 Studying the scope of the existing project
1.3) writing concept note for project
1.4) writing project proposal
2) Decision making for designing of the project
2.1 decide what the website looks like
2.1.1 What information should it contain?
2.1.2 How the information is placed on the website and format of this website
2.1.3 Decide how to relate information
2.2 Decide what the database should look like.
2.2.1 Select the types of entity that should be included in the database
2.2.2 Identifying types of attribute that are included in the entity
3) Information identification
3.1 rearranging the information
3.2 put the appropriate position of each
4) Starting the Implementation
4.1 writing code for web site
4.1.1 Writing code for each forms as needed
4.1.2 Interrelate the necessary information
4.2 Create data base or implement data base.
4.2.1 Create table and insert any necessary entities and attributes
4.2.2 Implement the interrelation between entities
4.4.3 Properly placing of attribute in specified entities
5) Develop code that connect data base and web site that used to make communication
between them
6) Testing

14) Schedule of the project

To accomplish this project it takes some moment starting from the information
gathering to delivering with the sub division of tasks that includes Information gathering,
requirement specification, system analyzing, system design, writing code, testing the
project and project delivery.
Generally the schedule of the project like arranged as the following table

Types of task Start date End date Duration/time of length

Information gathering 1/11/2011 16/11/2011 15days
Requirement 17/11/2011 28/11/2011 11days
specification

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Analyzing 29/11/2011 20/12/2011 19days
Designing 21/12/2011 16/01/2012 25days
Coding 01/03/2012 20/05/2012 60days
Testing 21/05/2012 31/06/2012 10days
Delivering 1/06/2012 6/06/2012 5days
Table 1: table that shows the schedule of the project

14.1 Gantt chart

To show the schedule of the project in addition to the table we use the Gantt chart below

Fig 2: schedule of the project in Gantt chart [ii]

15) Application of the project

After completed this project is expected to do the following things;
Used individual people who expected to pay the VAT tax because every one can be
registered by being his/her home what ever place by using computer or electronic
device such as mobile.
It used the state revenue authority by reducing the effort of the work and time
efficient because the current system they using is consume more time since,

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 individual person who pay such like tax should go and registered they have to register
this people order by order.

16) Cost required for the project

Resource used Cost it takes In EBR

Pen and paper 50 birr
CD/DVD 30 birr
Internet 60 birr
Transportation 100 birr
Printer 150 birr
copy 30 birr
Total 420 birr
Table2: Cost required for the project

17) Reference
When am writing this proposal I dont use more reference but I have used:
1 Internet to compare good system to accomplish the system
[i] http://www.snnprsrevenue.gov.et/organizationStru.htm
[ii] https://secure.gantto.com/login/gantto.html#demo
1) Short note which tells the back ground of the organization
2) System design development books

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