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Bestlink College of the Philippines
CHAPTER 2 RELATED STUDIES
2.0 INTRODUCTION
This chapter consists of comprehensive review of related systems and other
sources such as commercial products and existing system. It is a review relevant work by
other authors and relationship between this and the proposed projects. The objective of
the review is to learn what others have done to achieve similar goals and to be able to
justify the researchers approach.
2.1 RELATED LITERATURE
2.1.1Foreign Literature
A MODEL FOR THE BENEFITS OF ELECTRONIC TOLL COLLECTION
SYSTEM
By Rajesh H. Chaudhary of University of South Florida
Electronic toll collection system is used as a technology for fast and efficient
collection of toll at the toll plazas. This is possible as the vehicles passing through
the toll plaza do not stop to pay toll and the payment automatically takes place from
the account of the driver. The electronic toll lanes are set up with the special
antennas that continuously send out signals. These signals are used to automatically
identify the vehicles that travel by them. To use the electronic toll facility, the driver
needs to set up an account and get an electronic transponder fixed in the vehicle.
These transponders commonly known as the tags are usually fitted on the
windshields of the vehicles. The tag has all the information regarding the patron’s
account. The antenna continuously sends out a radio- frequency (microwave) pulse,
which returns only when it hits a transponder. These pulses are returned back from
the transponder and are received by the antenna. These microwaves reflected from
the tags contain information about the transponder’s number, patron’s account,
balance, etc. Other information such as date, time, and vehicle count could be
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recorded depending upon the requirement of the data needed by the toll agencies.
After encrypting the contents of this microwave, the unit then uses fiber-optic cables,
cellular modems or wireless transmitters to send it off to a central location, where
computers use the unique identification number to identify the account from which
the cost of the toll should be deducted. ETC system uses diverse technologies for its
working. The working of the electronic toll collection system with its components:
As the vehicle enters the toll lane, sensors detect the vehicle. The two-antenna
configuration reads a transponder, mounted on the vehicle's windshield. As the
vehicle passes through the exit light curtain, it is electronically classified by the
treadle based on the number of axles, and the ETC account is charged the proper
amount. Feedback is provided to the driver on an electronic sign. If the vehicle does
not have a transponder, the system classifies it as a violator and cameras (7) take
photos of the vehicle and its license plate for processing.
Benefits of Electronic Toll Collection include:
Congestion reduction -- The average number of vehicles waiting in the queue
reduces and so the average waiting time is reduced.
Increased Capacity -- The toll plaza would be able to accommodate the
increasing traffic without requiring building additional lanes.
Fuel saving -- The deceleration, acceleration and idling is completely
eliminated. This results in gas saving for the patrons using ETC. Besides, the
elimination of Acceleration and deceleration results in reduction of the
operating cost of the vehicles.
Operating cost saving -- Over a period of time, the toll collecting cost is
reduced. There is reduction in the man-hour required as the system does not
require any human interaction for the toll transaction.
Time saving -- ETC users do not stop for paying toll, thus there is
considerable saving in the travel time. Besides the travel time reliability is
increased as the travel time can be estimated fairly accurately.
Emission control -- Due to the elimination of the acceleration and idling,
vehicular emissions are reduced. Though these benefits only affect the
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surrounding area it is seen that there is an increase in the highway financing
by building toll plazas. In many non-attainment areas as declared by
Environment Protection Agency (EPA), ETC seems to be one of the
possibilities for air pollutant reduction.
Enhanced cash handing -- There is no cash transaction for the ETC lane so
cash handling is reduced so difficulties with cash handling is eliminated.
Thus aid in enhanced audit control by centralizing user accounts.
Payment flexibility -- The patrons do not have to worry about searching for
cash for the toll payment. Since the patrons set up account for ETC usage it
gives customers the flexibility of paying their toll bill with cash, check, or
even credit cards.
Enhanced data collection -- Information such as vehicle count over the time
of the day, date, time etc can be obtained due to the deployment of this
technology. This helps in making decisions regarding the pricing strategies
for the toll providers. It also helps planner to estimate the travel time that aid
in designing decisions.
Citation:http://www.google.com.ph/?
gws_rd=cr#fp=1b73459165514d28&q=A+model+for+the+benefits+of+electronic+t
oll+collection+system
IMPROVING THE TAX SYSTEM IN INDONESIA
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By Jens Arnold
Indonesia has come a long way in improving its tax system over the last decade,
both in terms of revenues raised and administrative efficiency. Nonetheless, the tax
take is still low, given the need for more spending on infrastructure and social
protection. With the exception of the natural resources sector, increasing tax
revenues would be best achieved through broadening tax bases and improving tax
administration, rather than changes in the tax schedule that seems broadly in line
with international practice. Possible measures to broaden the tax base include
bringing more of the self-employed into the tax system, subjecting employer-
provided fringe benefits and allowances to personal income taxation and reducing
the exemptions from value-added taxes. Similarly, broad-based investment credits
would be a less distortive way to enhance investment incentives than selective tax
holidays. Introducing a targeted, simplified tax regime for small and medium-sized
enterprises, as currently planned by the government, could foster their integration
into the tax system in the longer run, even if its short-run revenue potential is
limited. Upgrading tax administration has made substantial progress in Indonesia
since 2002, although there is still scope to improve the training of tax officers and
the administration’s audit and litigation capacities, while strengthening internal
control systems and enhancing the transparency of administrative decisions. The
audit system could be further improved by allocating more tax audits on the basis of
compliance risks. In the natural resources sector, particularly in mining, there is a
case for increasing the government’s share of resource rents through higher tax rates
imposed on these rents, as opposed to taxing revenues. This would imply a
willingness of the government to bear a larger share of the exploration and
development risk than heretofore, which Indonesia, with its improved access to
international financial markets and a diversified resource portfolio, is now well
placed to do. In the mining sector, a powerful rent tax regime with a large
government take would serve the country better than export taxes and ownership
restrictions that have been decided recently.
IMPROVING TAX COLLECTION EFFICIENCY IN ASIA
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By Robin Hicks (2 November 2009)
The pressure on government to efficiently deliver services has probably never
been greater. Such is life for governments during downturns. Systems are under
stress and yet extracting tax revenue from citizens and businesses to fund huge
economic stimulus packages has probably never been more difficult. But there are
triumphs despite the challenges. Take Indonesia. Policy loans from the World Bank
and the Asian Development Bank (ADB) are helping Southeast Asia’s largest
economy rejuvenate a tired and abused tax collection system into one that generated
40 per cent more revenue in 2008 than it did before a new system was implemented.
Tax revenue is now 20 percent of GDP. The old system, remembers Jörn
Brömmelhörster, Senior Country Economist, Indonesia Resident Mission at the
Asian Development Bank, was characterized by pervasive corruption, collusion and
nepotism. It wasn’t close to being transparent. Accounting was unreliable,
enforcement was poor, and the mandates of auditing bodies were often unclear. The
new system’s crowning achievement is, says Brömmelhörster, the introduction of the
Treasury Single Account, which manages public finances on a single, centralized
platform – there used to be some 18,000 separate commercial bank accounts to deal
with. Reform is still underway, and there plans to implement a modernization
strategy to re-engineer the tax department completely. Even a revenue collection
system that has got 24 per cent more effective since 2004 still has holes to fill. So
what about elsewhere in the region? Robin Hicks asked government officials in
China, South Korea, Australia and Hong Kong: are you happy with the efficiency of
your tax collection system?
“Yes” - David Butler, Second Commissioner, Technology and Operations,
Taxation Office, Australia we recorded A$20.9 billion increase in revenue
collections in 2007/8 over the previous year, which is the highest ever annual
increase. These positive outcomes took place in a difficult year, given the need to
implement a range of new legislative measures following the transition to a new
government, higher workloads and budget constraints including an increased
efficiency dividend. We handled two million registrations, over 12 million telephone
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calls, over three million items of correspondence, 14.5 million tax returns, and 18
million activity statements. The tenth anniversary of e-tax saw more than 1.9 million
self preparers lodge their 2007 return electronically, exceeding paper returns for the
second year running. While our service standard index was lower last year, partly as
a result of major system changes, we were still able to maintain the positive trend in
our surveys of tax agent, business and community perceptions.
“Yes” - Lim Soo Kyung, Assistant Commissioner for IT, National Tax Service,
South Korea IT is playing an important role in improving the performance of our tax
service. We installed the Tax Integrated System in 1997, which allows all NTS staff
to access all tax resource information online from wherever they work. So we can
manage all tax resource information in real time. We also set up the Home tax
system in 2002, and now most taxpayers pay taxes and handle tax work online
without having to visit the tax office. These aside, 26 systems are up and running,
including a data warehouse system for efficiently using massive amounts of tax data
and the world’s first Cash Receipt System for tracing cash transactions. We are now
working on implementing the e-Tax Invoice project and using RFID technology to
track the distribution of hard liquor. We hope that these new services will improve
efficiency and secure more tax revenue. We want to get better by integrating existing
systems into a single, low-cost, high-efficiency system.
Citation: http://www.futuregov.asia/articles/2009/nov/02/are-you-happy-efficiency-
your-tax-collection-syste/
TANZANIA ADOPTS ELECTRONIC TAX COLLECTION SYSTEM
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By Hellen Nachilongo
Tanzania hopes to double its tax revenue collection following a decision to adopt
an electronic tax collection system, which parliament has recommended. Dubbed
“Power of the Purse,” the system is expected to ensure zero losses in revenue. The
country loses up to Tsh700 million ($433,000) as a result of loopholes in the current
tax collection system. Job Ndugai, Deputy Speaker of the National Assembly, said
the new system will seal the loopholes that the paper receipts have created for
crooked government officials to steal money. He added that it will control
withholding tax and put stipulations on its use. The Public Accounts Committee,
Budget Committee, Auditor General and Local Authorities Account Committee have
jointly requested the government to start collecting revenue from the central bank
and local government sources using electronic machines, saying the manual system
is often manipulated. “The system that is currently in use is manipulated by officials,
who doctor receipts before the funds reach the Treasury,” the Deputy Speaker said.
The country projects to collect Tsh9.5 trillion ($5.8 billion) in taxes for the 2013/14
financial year is an increase of 19.9 per cent, compared with 16 per cent in the last
financial year. Controller and Auditor General Ludovic Utoh said the only way for
Tanzania to increase revenue collection is to migrate to the electronic system and
ensure that organizations are audited before using the funds. “Our office only gets to
audit and issue statements of revenue collection when the funds reach the Treasury,
but this is after the records have been tampered with,” he said. Tanzania Revenue
Authority (TRA) Commissioner-General Harry Kitillya emphasized the need to raise
more domestic taxes to drastically reduce donor dependence in financing its budget.
He said TRA expected domestic taxes to increase from the current 62 per cent to 70
percent by June 2018, adding that international trade taxes were expected to keep
declining.
2.1.2 Local Literature
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NEW PHILIPPINE CONSTITUTION AND GOVERNMENT ANNOTATED
By Antonio Orendain II
“Public Office as Public Trust”, this was stated at the book by Antonio Orendain
entitled, New Philippine Constitution and Government Annotated. The purpose of
energy public office is to serve the government, which in turn, is designed to serve
the public good. Everyone notice the slow flow of every transaction at different
government offices, where in people experience difficulty to settle their transactions.
This statement clearly explains that a government must provide good services to
its citizens and must set standards on how to collect target fund. Implementing the use
of technology will be very helpful to handle all transactions easier and more efficient.
Reference: New Philippine Constitution and Government Annotated
By Antonio Orendain II
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SOUTH COTABATO MUNICIPALITIES UPGRADE TAX COLLECTION
SYSTEM
Written by Tribune (29 June 2012)
KORONADAL CITY – The ten municipalities comprising the Province of South
Cotabato will soon be using a single property and business tax collection system after
sealing a deal with Philippine Veterans Bank. Under the recently-signed
Memorandum of Agreement between the Provincial Government and Veterans Bank,
the new system will automate real property and business tax collections operations
thereby enhancing the delivery of such services for the benefit of each municipality’s
residents & businesses. At the same time, this is foreseen to improve business & real
property tax collections. As the Provincial Government of South Cotabato is also
using the same tax collection system, this would mean seamless interface between
each municipality and the Provincial Capitol. Together with Veterans Bank EVP and
Branch Banking Head Jesus Vicente O. Garcia, South Cotabato Governor Arthur Y.
Pingoy signed the agreement, on behalf of the Municipalities of Banga, Lake Sebu,
Norala, Polomolok, Sto. Niño, Tupi, Tantangan, Tampakan, T’boli, and Surallah.
Aside from the real property and business tax collection system, the Provincial
Capital has also availed of Veterans Bank’s timekeeping and payroll system whereby
its employees are enrolled and issued timekeeping ID cards that also act as their
payroll ATM cards. The Provincial Capitol also has its own Veteran Teller ATM unit
and also benefits from the bank’s deposit pick-up and cash delivery services.
Citation: http://www.tribune.net.ph/index.php/business/item/859-south-cotabato-
municipalities-upgrade-tax-collection-system
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IMF OFFICIAL PRESSES PHILIPPINES TO IMPROVE TAX COLLECTION
Business World, April 24, 2010
MANILA, Philippines - Tax collection efforts have to be improved by the
Philippines if the country is to grow at the same pace as its Southeast Asian peers, an
International Monetary Fund (IMF) official yesterday said. It was a sentiment shared
by a visiting team of London-based Fitch Ratings, a Finance official said separately.
"For the Philippines to grow consistently at the levels observed in neighboring
countries, it is essential that the tax effort increases substantially," Denis J. Botman,
IMF resident representative to the Philippines, said in an e-mail to Business World.
"The additional resources can be used for higher public investment and social
spending. If this is combined with improving governance and lowering the cost of
doing business, investment will increase, jobs will be created, and growth will
accelerate."
The IMF, said Mr. Botman, expects the Philippines to trail its neighbors in terms
of growth since some of the factors that allowed the country to avoid the global
recession were now working against it. "Growth in the Philippines depends less on
exports, which partly insulated the economy when world trade collapsed in an
unprecedented manner. The flip side is now that world trade is rebounding, the
Philippines experience a smaller boost," he said.
He also explained that the IMF raised its Philippine forecast in line with a rosier
outlook for the global economy. "The Philippines is no exception and leading
economic indicators suggest that growth is accelerating, led by a rebound in exports
and consumption as confidence improves and remittances continue to grow," he said.
The IMF official, however, said that, as with its world projections, the Philippine
outlook remained uncertain due to the likely impact of the El Niño-generated dry
spell and threats to global recovery from the fiscal worries hounding the euro zone.
The concern over chronic weak tax collections was shared by Fitch, which wonders
whether the country can meet its P293-billion deficit target for the year.
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Finance Assistant Secretary Teresa S. Habitan told reporters yesterday a visiting
Fitch team -- led by Andrew Colquhoun, director for sovereign ratings for Asia
Pacific, and Ai Ling Ngiam, director for sovereign ratings for Asia -- raised the need
for the government to raise revenue. She said the visiting team asked what measures
will be pursued by the government to raise collections. The government, she said, will
propose to the next Congress the simplified net income taxation scheme for
individuals and professionals as well as the rationalization of fiscal incentives.
"Increasing the value-added tax rate to 15% from 12% and reducing the rate of
corporate income tax will also be proposed," she said. The Fitch team -- which met
with officials from the Finance department, National Economic and Development
Authority, the Philippine Economic Zone Authority, as well as the Internal Revenue
and Customs bureaus -- left yesterday at the end of a two-day visit. Its visit followed
that of Standard & Poor’s early this month.
Citation: http://www.abs-cbnnews.com/business/04/22/10/imf-official-presses-
philippines-improve-tax-collection
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THE PHILIPPINES WILL IMPLEMENT AND MODERNIZED
AUTOMATED DIGITAL TAX REVENUE SYSTEM
By the Asia Pacific Future Gov (January 14, 2013)
The Bureau of Internal Revenue is embarking on a US$54.3 million Revenue
Administration Reform Project (RARP) which aims to increase tax revenues over
time and address issues posed by corruption, tax administration inefficiencies and
lack of transparency, by introducing state of the art technologies to enhance the
country's overall tax administration system. The project is funded by the Millennium
Challenge Account – Philippines (MCA-P), an office of the independent US foreign
aid agency created to help developing nations in their fight against poverty by way of
implementing strategic threshold programs. RARP is composed of the following sub-
projects: Electronic Tax Information Systems (ETIS), Automated Auditing Tools
(AATs), a Public Awareness Campaign, and an anti-graft investigation unit for the
Department of Finance. The ETIS aims to modernize BIR and provide an enhanced
tax administration system that can be fully used by the agency nationwide. According
to MCA-P, this effort will improve the trustworthiness of actions and decisions based
on tax data. These, in turn, will improve tax compliance monitoring, reduce client
contact and opportunities for negotiated assessments, increase the detection of
misreporting and enhance the value of reports. Improved compliance, audit and
enforcement tools will contribute to a sustainable program of tax administration
leading to increased tax revenue collection. The bidding process for the
implementation of the ETIS is currently underway after the MCA-P formally invited
firms to submit their bid documents last November. Meanwhile, AATs are computer
software and hardware for the conduct of computer-assisted audits which promote
proper taxpayer compliance in filing and paying taxes. MCA-P will fund the purchase
of software licenses, hardware and subscription to a database service. This initiative
will make it possible for tax payers to submit tax records in digital form, thereby
reducing by half the number of days it takes to complete a tax audit. The reduction in
man days per tax audit is expected to help BIR reduce its backlog of unfinished audits
promote taxpayer satisfaction and ultimately leads to increased revenue collection.
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Just recently, revenue officers at the BIR had undergone had a series of training
courses to enhance their audit skills in a computerized accounting environment. The
training was held at the newly-renovated and furnished Computer-Assisted Training
Tools and Techniques (CAATTs) training facility, also part of the AATs sub-project.
This modern automated Tax Revenue system could be a step for a National ID system
so every tax payer will pay their taxes automatically using ETIS system.
Citation: http://betterphils.blogspot.com/2013/01/the-philippines-will-implement-
and.html
THE PHILIPPINES BUREAU OF INTERNAL REVENUE REDUCES
FEDERAL DEFICIT, IMPROVES TAX COLLECTION PROCESSES WITH
SAS
The mission of the Bureau of Internal Revenue (BIR) of the Republic of the
Philippines is to raise revenue for the government through the efficient collection of
taxes, provide quality service to taxpayers and to ensure impartial and uniform
enforcement of tax laws. In its role as the tax collection agency of the Philippines, the
BIR is the pillar of the economy. To successfully fulfill its mission and to effectively
turn around the tax revenue collection process, the BIR turned to SAS. Back From the
Brink ,"Over the past few years we became less and less successful in collecting
taxes, as evidenced by the continuous decline of our Tax Effort Ratio (TER), which is
total revenue collections over Gross Domestic Product (GDP)," says Estelita Aguirre,
Deputy Commissioner and Head of the Large Taxpayer Operations Group. "This
occurred for several reasons, such as the complexity of BIR requirements, the
increasing volume of business transactions and the absence of an online system to
handle the tracking and monitoring of the taxable transactions. And, of course, this
affected the Philippine government because the shortfall had an impact on the budget
deficit. "Using SAS has been our vindication, and our deliverance from the brink,"
continues Aguirre. "For so long we had been accused of being ineffective in
implementing the value-added tax (VAT) system. The situation got so dire that a
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congressman actually submitted a bill to completely abolish the VAT! And we could
only nervously counter that we were trying our best to enforce collections. But after
we started the 'Reconciliation of Listings for Enforcement' (RELIEF) project using
SAS, the VAT audit trail became very easy to track and the trend was finally
reversed. In fact, during the initial implementation of the RELIEF project we
experienced an amazing turnaround."
"In just the first year, we uncovered approximately PHP 70 billion (US$1.4
billion) in under-declarations, and the PHP 6 billion (US$114 million) that we
collected in that year amounted to a 400 percent return on investment! Just on the
initial implementation! It was so easy to convince our commissioner of the advantage
of using SAS software because the benefits can be quantified quite clearly." Lilia
Guillermo, BIR's CIO and Deputy Commissioner of the Information Systems Group,
says that the return on investment from SAS continues to be huge. "We have now
generated about 7 billion pesos (more than US$125 million) from the process: 200
million pesos uncovered from Bureau of Customs data, 3.2 billion pesos collections
from under-declarations that we identified, and 3.6 billion of additional voluntary
declarations after the message got out that we would identify under-declarations in
the long run," says Guillermo. "Taxpayers now understand that we run an effective
system, and that means we have to spend less time contacting them directly."
The Power of Information
"After discussing the parameters of the project with Deputy Aguirre, I knew that a
data warehouse was needed, and I wanted SAS," says Guillermo. "We also looked at
offerings from other software providers, but SAS cost much less. Also, we had
already been using SAS for MIS, and I felt that we should start with the license we
already had. Our manager thought that SAS was only a statistical software vendor,
but I insisted that the future is in SAS. Previously it had taken us six-eight years to
establish a clean taxpayer database, but SAS/Warehouse Administrator quickly
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provided us with powerful information. I knew I was not mistaken about SAS, and it
was so fast to implement.
"For many years, some taxpayers would deliberately try to confuse us and they were
very determined not to provide us with required information," continues Guillermo.
"But now we have links with the Bureau of Customs (BOC), and their database
interfaces with ours to check whether the taxpayer information reports are consistent.
In fact, SAS' Analytics allows us to match all VAT tax declarations against tax
importations from the BOC database to generate discrepancy analysis reports. We
exchange information with other governmental agencies as well, and all of this data is
stored in our SAS data warehouse."
"That's right," confirms Aguirre. "Now we are able to catch non-complying or falsely
complying taxpayers by using SAS! The 'exception reports' that we generate collect
invalid taxpayer identification numbers, which is our key to identifying them, and we
can also uncover fictitious sellers who are not registered in the database. The
information and analysis provided by SAS are allowing us to bolster the enforcement
and audit procedures that help to increase tax collections."
The 'No Contact Audit' – reducing corruption
"A further advantage of this system is that, since we have phased out human
intervention, we now employ what we call the 'no contact audit', where we assess and
collect taxes without using valuable human resources," says Aguirre. "The 'no contact
audit' minimizes the contact that our field tax collectors have with the taxpayers,
which saves us money and time as fewer people have to go make site visits. Graft and
corruption have also been reduced in this process, because SAS helps us to overcome
human failings."
SAS provides the BIR with a transparent process that supports and strengthens the
"no contact audit". The result is dynamic analytics on taxpayer discrepancies which
can be presented to the taxpayer via a letter/report printout, an email attachment or
via the Web. The automated generation and monitoring of these "letter notices" is
being implemented nationwide using the SAS Information Delivery Portal. The BIR
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revenue district offices can log on to the Portal and extract notices intended for their
respective taxpayers within their jurisdictions.
Citation: http://www.sas.com/success/philippinesbir.html
2.2 RELATED STUDIES
2.2.1 Foreign Studies
Computrol Company
Computrol located at St. Louis, Missouri that specializes in solving business
application problem. Computrol solution are implemented by the financial industry
leaders in banking, mutual funds, trust services, credit card, insurance, government
and other business to satisfy their information technology requirements.
The customers are using their software solution and services to address a wide
range of information technology requirement. These solutions operate in the
complex, high volume, multi-location, multi-lingual environment of large domestic
and international institutions. The company also handles less complex software and
services needs of their customers and offering pre-packaged software application and
develop custom software solutions. The Computrol professional staff provides a full
range of development and support services including requirement analysis, design,
software enhancement, custom development, contact consulting and programming,
user testing, implementation, conversion support, training and maintenance. The
staff also knows the marketplace because they have been working extensively in
business software solutions. The Computrol Domestic and Foreign Collection
System process bank collection items such as collection fees, float charges and out-
of –pocket expenses that are usually receive special handling outside standard
clearing. The DFC uses a browser based user interface to promote accuracy and ease
to use and help reduce cost by automating the collection effort. This system
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automates the collection items and adjustment processing and eliminates manual
process such are preparation of DDA tickets and general ledger entries. Real time
interfaces to banking application obtain current customers information to save
operators time while processing items. The other benefit of DFC is to promote
flexibility and accuracy since they are currently using a browser based interface the
users are defining collection and other fees; rates, type of items, general ledger
entries, processing region and many others system controls correctly. These
parameters provide customization of DFC without programming. Fees can be
established by processing region and type of item for pricing flexibility. The users
has no difficulty in using DFC because of the browser based user interface less
training time of users, the errors in data entry are minimized and navigation though
the system is performed efficiently. Items are easily located via customized
searching capabilities. This system also promoting cost efficiency. It supports either
a centralized or de-centralized collections operation. New branches and banks can be
seamlessly absorbed into operation with no down time or reprogramming required.
Domestic and Foreign Collection System has the different features that simplifies the
record keeping and processing of time sensitive bank items. Some of it are control
processing for collection and other fees via parameter, font ended with web based
user interface, also includes ACH, official check, account analysis and general
ledger interfaces. The system also performs currency conversion on foreign items
calculates interest on domestic advances issued under lines of credit and foreign
advances and foreign cash letter items, print collection letters, cash letters, official
checks, DDA and GL tickets upon request. Reports may be printed, exported to other
formats and viewed as a web display. Promote separation of duties with security
modules; provide statistical reporting by region, cost center, site, operation and
customer. Last is locates collection items with customized services.
Citation: http://divinista.net/products_lgu.html
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SYNTELLECT
Syntellect is a leading provider of self-service and live contact center solutions
spanning the entire customer service spectrum. Its comprehensive solutions are
designed to empower customers to achieve the best mix of automated and live
assistance service with the flexibility to adapt to changing needs and conditions.
Syntellect helps customers create, maintain and continuously improve superior end-
to-end service for their customers. With over two decades of pioneering leadership
and thousands of solutions deployed globally, Syntellect is a premier provider of
enterprise-class contact center solutions for the utilities, financial services,
government, high- technology, help desk, consumer products and health care
industries.
Payment Collections Solution
An efficient solution offering value added automated Payment Collection
services. Today, as automated telecommunication systems become an integral part of
business; many organizations are realizing the benefits of proactive and automated
client communications. The Syntellect Payment Collections solution can be used to
allow individuals to pay for products/services over the phone (through inbound
calling), or to solicit overdue payments from customers (through outbound calling).
By uploading a customer contact file or connecting to a database, Payment
Collections can automatically call the individuals and notify them of overdue
payments. This cost effective solution can be designed to accept responses from the
called party in two ways. The first approach uses the traditional method whereby the
individual presses a key on a touch tone keypad to make a selection, while the
second approach uses the latest in speech recognition technology and allows the
called party to speak the response of choice.
The Payment Collections solution will detect whether a live person, answering
machine or fax machine has answered the call, and responds accordingly. If a call is
unanswered or the line is busy, Syntellect logs this information in the database and
tries again later, ensuring that all the business’ contacts receive the intended
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communication. It can also be configured to include transfer capabilities to live call
center agents. The benefits of the Payment Collections solution are numerous, and
include the following:
Efficient payment processing- automated payment collections redirects customer
agents’ time to more productive tasks, leading to a more efficient organization,
higher revenues, and satisfied customers.
Proactive customer service — Businesses can offer unparalleled customer service
by providing automated and efficient telephone based services.
Reduced costs/Increased ROI — by automating information exchanges,
inefficiencies are reduced with aggressive return on investments (organizations often
experience ROI within a few months from implementation).
Robust security — Unlike Web based solutions, only limited information can be
accessed through an IVR system — automating information exchanges creates a
tamper proof environment. Further, because Payment Collections stores sensitive
customer account information, user based security ensures that a user’s access is
limited to the permissions set in their profile.
Feature rich, cutting edge software — Payment Collections is designed to meet an
organization's current and future needs. The latest software releases are available in a
backwards compatible format for upgrading previous versions.
Flexibility and compatibility — Rather than replacing an entire network, an add-on
is often more effective. Payment Collections uses industry standards to ensure
compatibility with existing infrastructures.
Stable services — Combined with mature hardware, Payment Collections ensures
the highest level of stability in a telephone based service.
Reporting
Syntellect Reports is an easy to use Web based tool for generating detailed and
summary call detail record (CDR) reports from data collected by the Syntellect IVR
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platform. Syntellect ensures that information for all inbound and outbound calls is
recorded and stored in the database, thus making this data available for reporting
purposes. With its ability to access and analyze data, Syntellect Reports is a valuable
tool in decision making and ensures that an organization is informed about their
business. Further, because Syntellect Reports provides open access to the Web pages
and data for customization, it is easily extendible. This enables clients to add Web
pages and reports, and log additional data through the IVR system. Data collection
and CDR reporting is centralized with the Web server based approach of Syntellect
Reports. Multiple servers send their data to a common database that is accessed by
Syntellect Reports, enabling a simple and consistent deployment. The Payment
Collections solution is designed to work within a variety of customer environments
by using industry leading hardware and telephony interfaces. This type of open
environment enables customers to connect with the platform through a number of
methods, depending on the business’ architecture. Because of its stable and robust
configuration, not only is the Syntellect system highly scalable and supports an
unlimited number of simultaneous calls, but it also allows customers to run multiple
solutions on a single system.
Citation: www.syntellect.com
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ELECTRONIC TOLL SYSTEM AT THE GOLDEN-GATE BRIDGE IN
SAN FRANCISCO
TRMI designed and installed the nation's first electronic toll collection
system at the Golden Gate Bridge in 1981. In 2006, TRMI completely revamped
the FasTrak Toll Collection System consisting of 11 lanes at a single plaza. At the
request of the Golden Gate Bridge Authority, TRMI built into its customized
Guardian lane software the ability for toll collectors to view five transactions
simultaneously on the toll terminal screen and be able to reclassify any one of
them. This capability allows the collectors to make instant corrections before the
data is stored in the plaza. It also eliminates the need for collectors to generate
handwritten notes from which auditors would then have to make adjustment
entries to collector classification records. The resulting reduction in labor is
significant.
All lanes are capable of mixed mode or dedicated ETC operation. The plaza host
system consists of a pair of clustered database and application servers located in
separate buildings to provide a fault-tolerant configuration. The system integrates
with the legacy Bay Area Transportation Authority regional customer service
center to provide statewide reciprocity with the other California Toll Operators
Committee member agencies.
The system features Linux lanes which use a rainproof touch screen for
the toll collector terminal. Overhead changeable message signs, Sirit AVI readers,
light curtains, patron feedback displays, and treadles are all connected to lane
controllers in the tunnel under the tollbooths. The lane controllers connect to the
front and rear VES cameras and to the plaza computer room via multi-mode fiber
optic data connections. The lane equipment is located on the counter, under the
counter, in the tunnel, and in the lane roadway.
Reference: http://www.trmi.com/toll_collection.php#etc
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ING BANK
ING Bank was looking for a single infrastructure that would enable both
communication with different institutions and collection of bills and thus decided
on i-Collect. ING Bank can now process different companies’ and institutions’
bills in an easy and secure way with a single system
Objectives:
Instant follow-up of collection transactions through existing management
screens,
Error-free collection transactions,
A single-system solution for the collection transactions of different
institutions/companies.
Collection process became reliable and productive while operation costs
decreased. A single payment infrastructure was formed for software to be
developed by the bank itself, Problems resulting from complex institutional
systems were solved, higher security and easier maintenance and problem-free
infrastructure. ING Bank collects payments of bills issued by Avea, Telekom,
Turkcell, Vodafone and Bilyoner through the iNNOVA i-Collect Channel
application. Ragıp Gürka highlighted that collection systems must have a reliable
infrastructure; further commenting on the value and benefit that iNNOVA
provides to the company, Gürkan said: “The i-Collect solution provides us with a
problem-free infrastructure. iNNOVA has extensive knowledge which stems from
its close relations with telecommunication companies and other institutions. ”This
system helped us tap into their accumulated knowledge.”
One of the major players in global finance, ING Bank, started its operations in
Turkey in 2008 after acquiring OyakBank targeting a larger share in Turkish
market and utilizing the knowledge and vision of ING Group.
ING Bank is one of the seven largest banks in Turkey with its 367 branch
offices, 279 authorized collection centers, 825 ATMs and 24/7 Internet and phone
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banking services. ING Bank collects bills belonging to 180 different companies
and institutions each month. ING Bank IT Software Development ManagerRagıp
Gürkan said the following regarding their cooperation with iNNOVA: “We have
collection agreements with 180 companies/ institutions. We are working online
with 30 of them.
Citation: http://www.innova.com.tr/pdfs/31000759-4256-42a9-aef1-
896b49c1fd87ING%20Bank_CS_en.pdf
ELECTRICITY SUPPLY BOARD OF IRELAND
Electricity Supply Board (ESB) is the primary supplier and distributor of
electricity to 1.7 million customers in Ireland. They have used the DOS version of
System Innovators´ CASHIER for Windows product since 1991 to collect
payments for bimonthly electricity bills. In 2002, ESB selected System Innovators
to upgrade their collection operations. Through the efforts of a dedicated team,
ESB rolled out new software and hardware to 141 cashiering workstations in 82
cash offices over a 6-week period. By the end of the year, ESB had deployed
Revenue Collector and CASHIER for Windows throughout Ireland.
Andrew Giles, ESB Payments Manager, said, "The decision to go with
Revenue Collector was an easy choice really. We had a very good relationship
with System Innovators for 11 years, and our people were singing their praises.
Our cashiers were so impressed with the new products that we handled this as an
upgrade."
A Host of Benefits
Revenue Collector provided ESB with a number of benefits, including an
electronic audit trail accessible from all locations. Andrew stated, "The offices
were generating a paper mountain. We´re trying to reengineer the processes
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within the back-office activities, and Revenue Collector arrived at the right time.
To get the benefits out of it, we didn´t want 82 shops sending paper back and
forth, so we eliminated the physical paper tally rolls. ESB installed bar code
readers at each of the 141 cashiering workstations for faster and more reliable
input of account information from the portion of the bill. They had previously
used OCR readers that had become problematic over the years and decided to
switch to bar code readers. "We are very pleased with their performance, and our
cashiers point to a much improved bill payment process," said Andrew. The speed
of clearance of payment and lodgment (deposit) queries was also improved. "In
our Customer Charter we guarantee to turn payment queries around in 5 days, or
we pay the customer 35 Euros. We used to do this research in our legacy customer
system, but now we use Revenue Collector. The clearance of payment queries has
dramatically improved. We have a much quicker turn-around time and are staying
within that target a lot more. Lodgment queries are much quicker, too. Our ability
to re-debit bad cheques to accounts is faster with Revenue Collector," reported
Andrew.
Reconciliation Online and Across Currencies
The reconciliation processes were also improved. "Daily cash journal n is
now online and speeded up considerably. Our Cash Control Unit has reported that
lodgment reconciliation is also much faster since Revenue Collector has come in."
ESB accepts both Euros and foreign currencies for payment. All
currencies other than the Euro are entered as "foreign currency" with a unique
exchange rate for each transaction. While the Euro is the currency for Ireland,
they will occasionally receive check payments in sterling or dollars. When this
happens, the cashier calls their Treasury Department for an up-to-the-minute
exchange rate quote and that rate is entered for the transaction.
Citation: http://www.systeminnovators.com/electricysupplyboardofireland.htm
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2.2.2 Local Studies
DIVINISTA CORPORATION
The Divinista Corporation has been in IT industry for almost 14 years and
encountered different changes and challenges of technology. It is certified in
various IT certification body such as Microsoft database and open source (RedHat
Linux) and ITIL (internationally accepted IT process) and currently handling
more than 10Terabytes Database. It has been providing consultancy to different
government IT projects. The brain of Divinista Corporation had worked with the
Commission on Audit as head of the technical division that supervise the
technical aspect of the implementation of eNGAS, the system that is being
implemented in more than 300 government offices nationwide (National, Local
and Government Owned Corporations). The company uses Local Government
Unit System to handle its operation.
The following are Divinista Corporation System features:
Improve financial position awareness of the municipal government
Know the status of tax payments such as who paid and more importantly,
who did not!
Have an accurate projection of collection for the year and succeeding
years for sound decision making as to legislating tax amnesty, discounts
etc
Know how much is collected not only in real property tax but also in other
collections such as business permit, community tax certificate, market
ticket, franchise, civil registry related etc
By knowing who is not paying, the treasurer’s office could do a follow up
or discuss the issue with the concern tax payer
Accessing the system remotely, Local Executives can see how the office is
performing even if he/she is in out town travels
The local executive will not be dependent of what the department head is
reporting with regards to the status of the operation
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Improve compliance to regulatory offices by:
Real-time reporting of up-to the last minute transactions and remittance of
collections
Generate reports required by BLGF, DOF, COA and others
Automatic generation of Report of Collections and Deposits (RCD)
Improve office efficiency by:
Avoiding redundancies of work by having a centralize record of
transaction and uniform charging of fees in collection
No more manual computing of collections since reports of collections are
generated per accountable officers, daily or certain period of time
Fast retrieval of record via reports in a single click of a mouse
No more error in computation of discounts, penalties fees and other
charges
Automatic adjustments of real property appraise value based on the
parameters to be identified by the provincial treasurer office and
Sangguniang bayan
Automatic generation of Tax Bill
Citation: http://divinista.net/products_lgu.html
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CATANDUANES LGU TO ADOPT LEGAZPI CITY TAX COLLECTION
SYSTEM MODEL
The provincial government of Catanduanes adopts the Enhanced Tax
Revenue Assessment and Collection System (ETRACS) presently being
implemented by the local government of Legazpi City.
Enhanced Tax Revenue and Collection System (ETRACS) is a web-based,
GIS ready, LGU taxation application design for Provincial, City and Municipal
LGUs. It has the following core modules:
Real Property Tax Module – fully automated assessment of land, buildings,
machineries, plants and trees and fully integrated with the collection system
Business Permit and Licensing Module – automated assessment of
new/renewed business permit applications and fully integrated with the
collection system
Tax Collection Module – controls accountable forms issued to collectors, has
daily remittance and liquidation functions, supports online and offline
collections, automated posting of transactions and updating of ledgers.
Administration Module – covers administrator’s access protocols
Taxpayer Registration Module – covers creation of individual, juridical and
multiple taxpayers’ accounts and reconciliation of accounts.
Citation: http://www.landequity.com.ph/ETRACS
Citation: http://pnabicol.blogspot.com/2010/10/catanduanes-lgu-to-adopt-
legazpi-city.html
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RCS: CASHIERING SYSTEM FOR BIR
Cashiering System for LGUs
The Revenue and Collection System is the central, web-based tool designed
for Local Government Units to record, track, and monitor data about its revenue
and collection activities from various income and revenue sources. RCS is a
modern software program that allows revenues and collections to be recorded
from your cashiering front office and integrated with the issuance of your official
receipts.
A paperless, streamlined, database driven system to record revenues and
collections
Free up time in the back office–get reports instantly
Monitor collections on a real-time basis, by revenue source, period or
personnel
Assign various system functions depending on your authorized user
Prevent loopholes by tracking accountable forms with payments received
Instant integration to the eSRE System of the Department of Finance
In an article entitled “BIR collection target on track Henares aims for P1-
trillion mark” in the Philippine Star, August 6, 2012 issue, the Bureau of Internal
Revenue identified the launch of the Official Registry Book for excise products as
one of its priority projects.
Citation:http://www.asiagate.com/what-we-do/products/rcs-cashiering-
system-for-lgus/
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MANILA ELECTRIC COMPANY ONLINE BILLING SYSTEM
The Manila Electric Company also known as MERALCO or Meralco, is
the Philippines' largest distributor of electrical power. MERALCO is the Metro
Manila's only electric power distributor and holds the power distribution franchise
for some 22 cities and 89 municipalities, including the whole of Metro Manila and
Mega Manila region. Meralco (www.meralco.com.ph) has an online account and
billing system for their consumers. It’s called the My e-Meralco Bill and it allows
you to view your electric bill online, among others.
This is good if you’re always away from home or the electric bill you’re
paying is not under your name or address. You can always check on it online. To
register your account, you need the Service ID number, Billing Date and amount
from your latest statement. You can get all these information from your latest
Meralco Billing statement. Once enrolled, you are able to see a PDF equivalent of
your bill, subscribe to alerts for new bills or overdue bills and get contact
information or support from their 24 hour call-center.
Since I already enrolled my Meralco bill with BPIExpressOnline, I am
able to check for the exact amount and send the payment via BPI. Take note that
in order to complete the payment, you need to input the exact amount and the
unique 5-digit number found in your e-billing statement. Though the system does
not provide a way to pay for your electric bill, it’s nice to know that Meralco has
this system in place. They might want to check-out the list of locally available
payment solutions from my previous post.
Citation:http://www.pinoytechblog.com/archives/e-meralco-bill-and-online-
payments
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REAL PROPERTY TAX COLLECTION SYSTEM FOR CEBU
RISE LGU is a comprehensive software solution that provides revenue-
generating information, financial management, governance, and administration
systems for local government units.
Real Property Tax Assessment System (RPTAS / RPTA)
RPTAS provides an automated system for assessing taxes due on real
estate properties performed by the Assessor's office. It has facilities for property
valuation based on market value as well as provides for appropriate adjustments.
This module is linked to the RPTS module for the Treasurer's office for the billing
and collection operations.
Real Property Tax Collection System (RPTCS)
The billing functions of the Treasurer's office for the assessed taxes due on
real estate properties. It has facilities for producing billing notices/statements and
monitoring of payments collected in the Revenue Collection System (RCS).
Business Permit & License System (BPLS)
The Business Permit and License System build and update the LGU's
business/mayor's permit and establishment master files. It also builds up and
maintains data on business permit-related transactions which include: new
applications and renewals of business permits, and closure of business
establishments.
Budget and Expense Monitoring System (BEMS)
The BPMS takes over the manual task of consolidating the budgets of all
units in an organization and produces reports such as Projected Cash Flow
Statements. It maintains in a database the approved budget of each unit, thus
information on budget balances and variances between budgeted amounts and
actual expenditures are captured.
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Motorized Tricycle Operator's Permit System (MTOPS)
Generates the following reports:
a. Recording of all MTOP issued
b. Setup of Transaction and other fees
c. Ledger of transactions of MTOP
d. Assessment of Transaction
e. Posting of Payment
f. Printing of Forms
g. Reports
Revenue Collection System (RCS)
The RCS captures and maintains a database of all revenue collections and bank
deposit transactions. It also generates the required standard reports on collections
and deposits.
Executive Information System (EIS)
The Executive Information System will access the data of the application
systems in order to provide management with easy-to-understand summary
information. The EIS also provides the facility to drill down for more detailed
data as needed. The EIS makes it possible for decision-makers to see both the big
picture and little details. It allows the Local Chief Executive and LGU officials to
quickly access vital information.
Miscellaneous Systems
Able to capture all sources of revenue through the issuance of computer
generated receipt.
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The Residence Certificate System (RCS) will be able to capture database
of residence applying for residence certificates, Report of Collection, and Deposit
and Abstract Collection.
The Professional Tax Receipt (PTR) captures professionals applying for a
professional tax receipt. The system maintains the subsidiary ledger of each
taxpayer. The system is linked to Point of Payment System for the issuance of
computerized official receipt. The reports generated consists of payment history
of each taxpayer, master lists of taxpayers, daily abstract of collection report
(CCS) and abstract module of professional tax.
Citation:http://www.prlog.org/11896600-real-property-tax-collection-system-for-
cebu.html
2.3 Synthesis and relevance to the study
Review related literatures and studies prove that a computerized Collection
system helps a lot in handling business operations locally and internationally.
In an article entitled ”A Model for the benefits of Electronic toll collection
system” by Rajesh H. Chaudhary of University of South Florida , Electronic toll
collection system is for fast and efficient collection of toll at toll plazas. The article of
stated that the benefits of ETC includes congestion reduction, increased capacity, fuel
saving, operating cost saving, time saving, emission control, enhanced cash handling,
payment flexibility and enhanced date collection.
While in an article entitled “Improving Tax System in Indonesia” by Jens Arnold,
it was stated that Indonesia has come a long way in improving its tax system over the last
decade, both in terms of revenues raised and administrative agency to improve their
collection of revenue.
Another article by Robin Hicks entitled “Improving Tax Collection efficiency in
Asia” stated that improving collection system rejuvenate a tired and abused tax collection
system into one that generated 40 percent more revenue in 2008 than it did before a new
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system is implemented. Traditional systems characterized by pervasive corruption,
collusion and nepotism.
Tanzania also adopts Electronic Tax Collection System due to country loses up to Tsh700
million ($433,000) as a result of the current tax collection system.
In the Philippines, Bureau of Internal Revenue upgrades Tax Operation System
with crown agents’ trips Tax package. According to the study the increasing competitive
demands, the elimination of technological barriers and the need for efficient tax
collection have been some of the driving forces that have impacted revenue agencies. The
BIR plays a crucial role in enabling the accurate and efficient collection and processing
of Tax revenues thus, a major upgrade of Philippine BIR’ main computer based
operations systems via Electronic Tax Information System (eTIS) Project are being
implemented.
In the article written entitled “South Cotabato Municipalities upgrade Tax
Collection System, the under-signed Memorandum of Agreement between the Provincial
Government and Veterans Bank, the new system will automate real property and business
tax collections operations thereby enhancing the delivery of such service for the benefit
of each municipality’s residents and business and improve Tax collection.
Denis J. Botman, IMF resident representative said, “For the Philippines to grow
consistently at the level observed in neighboring countries, it is essential that the tax
effort increases and raised the need for the government to raise revenue.”
The article written by Asia Pacific Future Gov it was stated that he BIR aims to
increase tax revenue by means of Revenue Administration Reform Project (RARP) and
by means of introducing state of the art of technologies to enhance the country’s overall
tax administration system.
Those evidences stated from the foreign and local articles written by authors
prove the benefits of using a computerized collection system to different companies or
institutions. Some companies and institutions locally and internationally adopt
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computerization for its business developments.Like the Computrol that automates
collections of fees and float charges to have centralized collections operations.
As well as Syntellect which automated its payment collection due to its benefits
including efficient payment processing, security, protective customer service and its
stable processes.
Even Golden Gate Bridge at San Francisco uses electronic toll system and ING
Bank by using Upgraded Collection System on which the bank can now process different
companies and institution bills in an easy and secure way with a single system.
The Electricity Supply Board of Ireland which is the primary supplies and
distribute of electricity to 1.7 million customers in Ireland also upgrades billing and
collection system for easy handle operation.
In the Philippines there are also encountered change and challenges of
technology. The Divinista Corporation, Catanduanes, Philippines Bureau of International
Revenue, Manila Electric Company and Cebu City were adopts computerized collection
system to improve its services and collection proving that computerized system brought
success to those companies.
Thus, a well organized computer-based Collection System in any constitutions
like those stated must pursue for its better services.
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