bestlink college of the philippines -...

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

Collection System of Local Government Units Page 2-1


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

Collection System of Local Government Units -2


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


http://www.google.com.ph/?gws_rd=cr#fp=1b73459165514d28&q=A+model+for+the+benefits+of+electronic+toll+collection+system




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



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



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


http://www.futuregov.asia/articles/2009/nov/02/are-you-happy-efficiency-your-tax-collection-syste/

http://www.futuregov.asia/articles/2009/nov/02/are-you-happy-efficiency-your-tax-collection-syste/


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



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



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


http://www.tribune.net.ph/index.php/business/item/859-south-cotabato-municipalities-upgrade-tax-collection-system

http://www.tribune.net.ph/index.php/business/item/859-south-cotabato-municipalities-upgrade-tax-collection-system


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.



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


http://www.abs-cbnnews.com/business/04/22/10/imf-official-presses-philippines-improve-tax-collection

http://www.abs-cbnnews.com/business/04/22/10/imf-official-presses-philippines-improve-tax-collection


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.



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


http://betterphils.blogspot.com/2013/01/the-philippines-will-implement-and.html

http://betterphils.blogspot.com/2013/01/the-philippines-will-implement-and.html


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



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



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


http://www.sas.com/success/philippinesbir.html


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


http://divinista.net/products_lgu.html


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



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



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


http://www.syntellect.com/


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


http://www.trmi.com/toll_collection.php#etc


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



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


http://www.innova.com.tr/pdfs/31000759-4256-42a9-aef1-896b49c1fd87ING%20Bank_CS_en.pdf

http://www.innova.com.tr/pdfs/31000759-4256-42a9-aef1-896b49c1fd87ING%20Bank_CS_en.pdf


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


http://www.systeminnovators.com/electricysupplyboardofireland.htm


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



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


http://divinista.net/products_lgu.html


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


http://pnabicol.blogspot.com/2010/10/catanduanes-lgu-to-adopt-legazpi-city.html

http://pnabicol.blogspot.com/2010/10/catanduanes-lgu-to-adopt-legazpi-city.html


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/


http://www.asiagate.com/what-we-do/products/rcs-cashiering-system-for-lgus/

http://www.asiagate.com/what-we-do/products/rcs-cashiering-system-for-lgus/


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


http://www.pinoytechblog.com/archives/e-meralco-bill-and-online-payments

http://www.pinoytechblog.com/archives/e-meralco-bill-and-online-payments


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.



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.



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


http://www.prlog.org/11896600-real-property-tax-collection-system-for-cebu.html

http://www.prlog.org/11896600-real-property-tax-collection-system-for-cebu.html


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



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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