Design and Development of a Real Time Data Warehouse System for Tax Audit of Akwa Ibom State Internal Revenue Service (IRS)

Abstract

Compliance attitude of tax payers in Nigeria is a major challenge which has a direct effect on the economic growth of a society. An obligation to pay taxes though constitutional is always neglected by some citizens either as a result of multiple taxation, wrong tax computations, victimization by tax officials and those who claim to comply do it unwillingly by submitting wrong tax records, not paying tax on time, hiding some important financial records in order to avoid tax, the officials on the other hand seize the opportunity to embezzle tax refunds. Tax is a mandatory financial charge or some other type of levy imposed upon a tax payer by a governmental organization in order to fund public expenditures. Tax audit is an independent examination of accounts, tax return, tax payments and other financial records of a payer to confirm compliance with tax laws, rules and regulation, accuracy and correctness of tax paid. Proper tax auditing eradicates the problems such as nil tax return (remittance), fraud, multiple
taxations, difficulty in accessing tax clearance by tax payers, lack of accurate and timely information for decision making . The purpose of this study was to design and develop a real time data warehouse system for tax audit of Akwa Ibom State Internal Revenue Service (IRS). Structured System Analysis and Design Methodology (SSADM) and Object-Oriented Analysis
and Design Methodology (OOADM) were adopted at the analysis and design phase. Implementation was done using C sharp (C#) and MySQL server. The result was a real time web-based data warehouse system for tax auditing. The new system computes tax due, interest and fines to defaulters, confirms tax remittance, generates a centralized data warehouse, generates tax identification numbers to tax payers, generates tax report, and generates tax clearance.