1.1 Introduction
A tax assessment system refers to the process of determining the value of a taxpayer's income, property, or transaction for the purpose of computing the correct amount of tax due (Okoye & Ezejiofor, 2014). Traditionally, this process has been executed manually, which is often associated with numerous challenges including human error, inefficiency, delays, revenue leakages, and a lack of transparency. In developing countries like Nigeria, tax administration has often been plagued by inefficiencies such as tax evasion, low compliance rates, poor record keeping, and weak enforcement (Odusola, 2006). The integration of a web-based system into the tax administration process is, therefore, a strategic move toward digital transformation and economic reform. It allows for improved taxpayer registration, accurate tax assessments, automated reminders, and instant access to tax records, all of which contribute to more effective tax management (Olaoye, 2016).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitation of the study and Definition of technical terms.
1.2 Background of Study
The evolution of tax assessment systems has mirrored advancements in technology and the growing need for transparent and efficient public financial management. Initially, tax assessment was entirely manual, involving physical documentation, face-to-face interactions between tax officials and taxpayers, and paper-based record-keeping. According to Odusola (2006), the inefficiencies and inconsistencies of manual systems, particularly in developing countries like Nigeria, have long contributed to revenue losses, tax evasion, and administrative bottlenecks.
The global shift toward digital solutions in public administration began in the late 20th century with the introduction of computerized databases and management information systems. In advanced economies, computerized tax assessment began to replace manual procedures, leading to greater accuracy and better compliance rates. According to OECD (2010), the use of technology in tax administration began gaining prominence in the 1990s, with the introduction of e-filing and online tax payment systems that allowed individuals and businesses to declare income and pay taxes remotely.
Taxation remains one of the most significant sources of government revenue across the world, especially in developing nations striving to reduce dependence on oil and foreign aid. However, the effectiveness of tax administration largely depends on the accuracy and efficiency of the tax assessment process. In Nigeria, manual tax assessment systems have been the traditional norm, often characterized by inefficiencies, inconsistencies, and corruption. According to Odusola (2006), Nigeria's tax system suffers from structural weaknesses such as lack of transparency, poor database management, and a high rate of tax evasion (Odusola, 2006).
Okoye and Ezejiofor (2014) asserted that the manual method of tax assessment encourages fraudulent practices, loss of government revenue, and delays in tax processing. Similarly, Adebisi and Gbegi (2013) reported that manual tax processes are prone to human errors, resulting in inaccurate tax computations and low compliance among taxpayers (Adebisi et al., 2013). Olaoye (2016) stated that the adoption of web-based tax systems enhances tax compliance by making the process more convenient, transparent, and user-friendly. Web-based tax assessment systems provide a platform where taxpayers can register, calculate their tax obligations, and submit relevant documents online.
With the rise of information and communication technology (ICT), web-based systems have emerged as efficient alternatives to manual methods in various sectors, including taxation. A web-based tax assessment system is an online platform designed to automate the process of tax computation, assessment, filing, and in some cases, payment, thereby enhancing transparency, accountability, and ease of compliance (Adebisi & Gbegi, 2013).
The challenges encountered that led to the execution of the research work is that, the absence of a centralized, web-based tax assessment system limits accessibility for taxpayers in remote areas, and fails to support real-time updates, automated reminders, or self-service features that could enhance compliance and reduce the workload on tax officials. There is a clear gap between the current state of tax administration and the potential benefits of adopting digital technology. It is against the background that the developments of this software will benefit taxpayers by offering a user-friendly interface where they can easily register, input relevant information, calculate their tax liabilities, and generate assessment reports without visiting tax offices.
1.3 Statement of Problem
Based on the investigation conducted, the implemented system encounters a number of challenges, with some of the most significant issues highlighted below:
- Manual systems cannot validate taxpayer data in real time, delaying assessments and making it difficult for authorities to respond quickly to discrepancies.
- The manual processes often lack clear documentation and standardization, creating room for manipulation, bribery, and under-assessment.
- In the existing system operation, the manual data entry, calculation, and filing increase the likelihood of tax documentation errors.
- The manual collection and processing of tax information require significant human effort and administrative overhead.
- Monitoring taxpayers' compliance is challenging due to the manual nature of filing and weak audit trails.
- Maintaining a manual tax system requires a large workforce and physical infrastructure, increasing the cost of tax administration without a commensurate increase in revenue.
1.4 Aim and Objectives of the Study
The aim of the study is to develop a web-based tax assessment system that enhances the efficiency, accuracy, and transparency of the tax assessment process. In achieving this aim, the following specific objectives were laid out as follows:
- To design a centralized system for real-time tax assessment and taxpayer data management.
- To enable automatic tax computation based on user-submitted financial data.
- To reduce manual errors and improve transparency in tax assessments.
- To enhance taxpayer accessibility and compliance through a user-friendly web platform.
- To provide a secure backend for tax administrators to manage and monitor assessments.
1.5 Significance of Study
The deployment of the proposed system will hold significant relevance in the following ways.
- Taxpayers will benefit from easy access to tax services, reduced filing errors, and increased convenience.
- Tax officials will experience improved administrative efficiency and real-time monitoring capabilities.
- Government agencies will benefit from increased revenue generation through improved compliance.
- Researchers and academic institutions will gain valuable insights into e-governance and ICT applications.
- Software developers and ICT professionals will find opportunities for innovation and service delivery in public finance systems.
1.6 Scope of Study
This study focuses on the development and implementation of a web-based tax assessment system for the Oyo State Board of Internal Revenue. The system is designed to handle the registration of taxpayers, automatic computation of taxes, and monitoring of tax compliance within the state. It will include modules for both taxpayers and administrators, with access to tax history, assessment tools, and reporting functions.
1.7 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of accurate and up-to-date tax data collection.
1.8 Definition of Terms
Tax Assessment System: A structured process used by tax authorities to evaluate and determine the amount of tax a person or entity is liable to pay. In this study, it refers to the computerized system used to perform such evaluations (Okoye & Ezejiofor, 2014).
Web-Based System: An application that operates through a web browser and is accessible over the internet. It does not require installation on user devices, allowing remote access and centralized control (Olaoye, 2016).
Taxpayer: An individual or organization that is obligated to pay taxes to a government authority. in the context of this project, taxpayers are the end-users of the web-based tax system (Odusola, 2006).
E-Taxation: The electronic process of assessing, filing, and paying taxes using digital platforms. E-taxation aims to reduce paperwork, promote efficiency, and enhance compliance (Adebisi & Gbegi, 2013).
Internal Revenue Service (IRS): A government agency responsible for tax collection and enforcement. In Nigeria, each state has its own Internal Revenue Service, such as the Oyo State Board of Internal Revenue.
…
