Business Taxes Figure _ .

Current Business Taxes Cycle

Community Tax Certificate

Barangay Clearance

Taxpayer

Barangay Captain

Sanitary Inspector
th

Treasurer

Barangay Clearance Barangay Clearance

Sanitary Permit
Assesment of tax and Signing of approval

4 Quarter Official Receipt

Sworn Statement

Community Tax Certificate
Application for Business License and Permit File

Sanitary Permit (copy) Barangay Clearance (copy) Sworn Statement (copy)

Sworn Statement

Sworn Statement Taxpayer Record file

Application for Business License and Permit File

Issuance Official Reciept upon Payment

Official Receipt 2

Update of Taxpayer Record File

Taxpayer Record File

Cash
Reconcile Cah Receipt and OR's Cashier
Cash
Official Receipt 3

Bureau of Fire Protection

Prepare Statement of Reconciliation 1

Prepare Statement of Reconciliation

Prepare Statement Reconciliation 2

Cash Collection Summary 1

Accounting Department

Cash

Prepare Cash Collection Summary
OR3

Cash

Check and Deposit Collection

Deposit Slip

Bank

Statement of Reconcilliation File

Official Receipt File

Cash Collection File

Overall. the next step is assessment of amount of the tax due. This whole process would take about ten to fifteen minutes depending on the availability of personnel. After submission of the required documents. this process will take about thirty to forty-five minutes.Current Business Tax Cycle In order to pay for the business tax due. Documents will be kept regarding tax payer’s company and other information related. All transactions are being recorded except during holidays and events. It is a formal document presented as an evidence of cash receipts.      Barangay Clearance – Brangay Captain Sanitary Permit – Sanitary Inspector Community Tax Certificate – Treasurer’s Office 4th Quarter Official Receipts Sworn Statement When these documents are completed. the payer must be able to comply the following documents from corresponding government agencies and personnel: Sworn Statement and 4th Quarter Official Receipts is mandatory. The next step is preparation of cash collection summary. tax payers can fill-out their application forms to be submitted to the MTO. Payment of tax will be remitted to the treasurer after payment to cashier. . Settlement of the cash receipts and OR will follow. During this procedure. After completion of the following documents. The following table will show the breakdown of activities and the time to be consumed per task. Afterward s. assessment and approval will follow and the same personnel are in charge. it is then deposited to the bank. depending on assessment time and availability of personnel. preparation of Reconciliation is then handed by the treasurer and one copy of which is being submitted to the accounting department. After which. The third process could take at least an hour or more. The whole process is suspended until due time. There will be no posting of payments. taxpayer can decide whether to renew or not their business permit.

Breakdown of Activities in the Current Business Cyle Activity Obtaining of Application Form (MTO) Submission of Form (MTO) Assessment and Approval Issuance of Receipt Reconciliation of Cash Receipts and OR Preparation of Statement of Reconciliation Preparation of Cash Collection Summary Checking and Depositing of Cash Total time Duration (Minutes) 5 10 45 10 15 15 20 20 2 hours and 20 minutes .Table _.

Figure_. Suggested Business Tax Community Tax Certificate Sanitary Permit Barangay Clearance Fire Clearance Sworn Statement Barangay Clearance th Sanitary Permit 4 Quarter Official Receipt Sworn Community Tax Certificate Fire Clearance Statement 4 Quarter Official Receipt th All Verified Requirements Application for Business License and Permit Statement of Account Fire Clearance (copy) Sworn Statement (copy) Sanitary Permit (copy) Statement of Account 1 Official Receipt 2 Singed Statement of Account Official Receipt Singed Statement of Account Cash Cash Collection Summary 1 Prepare Statement of Reconciliation 1 Cash Collection Summary 1 Cash OR3 Cash Collection Summary 1 Cash Deposit Slip Cash OR3 Prepare Statement Reconciliation 2 .

 Failure of segregation of duties It could be fast and easy to do the job if each employee has different task/s to perform.  Preparation of Cash Collection Summary It would be better if this task was done by the cashier. Same procedure will be applied to the suggested cycle. the proponent would like to respond on some problems observed. Any wrong statement can be detected on the reconciliation. it utilized cash summary collection prepared by the cashier. However the verification of the documents upon acceptance and separation of assessment of the amount of tax and signing the approval will be changed on the process. In securing accounts.The following are negative impact s of negligence and over reliance to the employees: The proponents would like to give solution for the listed problems by empowering the procedure in achieving internal control  Cash deposits Transaction was delayed causing the failure to track down amount and deposited to the total receipt released. After the account is verified to be balance. Here. cash and OR’s. This process would take about ten minutes. The proponents recognizes the effort and efficiency of the present system however. There is no assurance of having the same amount or account balances. The next is to have a signed Statement of Account from the office of the Mayor. reconciliation is made. the tax payer will pay the due. Next. This process would take about thirty to thirty five minutes. the treasurer will check and deposit the cash. . This process would take only about twenty six minutes.

Activity of Suggesteed Business Cycle Activity Obtaining of Application Form (MTO) and Submission of Form (MTO) Verification of Documents Duration (Minutes) 10 Rationale It was merged due to the same process was handled by same personnel To ease assessment and rejection of invalid and wrong documents Signing and approval is separated This is to established clear separation of duties This is practiced to due to emphasize of authorization Includes updating of taxpayers file Additional documents is required (cash collection summary) Rearranged only from the process Verification of balanced accounts The time estimated is for the checking of cash only 10 Assessment of Tax Signing of Treasurer Approval from the office of the Mayor issuance of Receipt Reconciliation of Cash Receipt and OR’s Preparation of Cash Summary Preparation of Statement of Reconciliation Checking and Depositing of Cash Total Time 15 5 10 10 5 7 7 7 1 hour and 26 minutes The five days is given to complete required documents and payments requires eighty six minutes .Table _.

thus making it more customer friendly.Table _. Comparative Analysis on Business Taxes Activity Current Obtaining of Application Form (MTO) and Submission of Form (MTO) Verification of Documents Assessment of Tax Signing of Treasurer Approval from the office of the Mayor issuance of Receipt Reconciliation of Cash Receipt and OR’s Preparation of Cash Summary Preparation of Statement of Reconciliation Checking and Depositing of Cash Total Time 10 15 15 20 20 2 hours and 20 minutes 15 Duration (Minutes) Suggested 10 Time saving 5 45 10 15 5 10 10 5 7 7 7 1 hour and 26 minutes 20 10 10 8 13 13 The proponent considers the appropriate mix of time and internal control. . There is no significant difference in the period of time in the two system however procedures became more efficient.

Use Case Analysis Figure_. Captain Sanitary Inspector Office of the Mayor Treasurer Bureau of Fire Protection Treasurer Issue Pay Tax Due Cashier Received Documents Submit 4 Quarter OR Secure Sworn Statement th Submit Required Documents Taxpayer Business Permit Application Release Business Permit Assess and Approval of Application Assessment of Value Property Reconcile Collection Reconcile Cash on Hand and Book Post to Ledger Office of the Mayor Municipal Treasurer Local Assessor Record Transaction Deposit Collection Bank . Use Case Analysis Brgy.

Use Case Narrative Use Case Name Issue Required Documents Description Taxpayers go to different offices to acquire and accomplish forms and documents required to the application process Actors  Barangay Captain  Sanitary inspector  Office of the Mayor  Treasurer  Bureau f Fire and Protection  Taxpayer/ applicant    Submit 4th Quarter official Receipt Securing Sworn Statement Submission of 4th quarter receipts of his/her business Taxpayer securing sworn statement declaring his/her property Filling of business permit Submission of required documents for assessment and approval process (treasurer) Evaluation and assessment of declared property Inspection of required documents and approval of application Payment of tax due to cashier Remittance of daily collection  Adjustment and reconciling value of cash received and recorded on the book Posting transaction on Ledger Treasurer filling up deposit slip and delivering the collection on the bank Taxpayer Taxpayer Business Permit Application Submission of required documents Assessment of Value Property Assessment and Approval Taxpayer   Taxpayer Municipal Treasurer  Local Assessor  Municipal Treasurer  Taxpayer  Cashier  Cashier Municipal Treasurer   Cashier Pay Tax Due Remittance of Collection Reconcile Cash on Hand and per Book Post to Ledger Depositing Collection Cashier   Bank Municipal Treasurer .The table below summarizes the use case. Table _. its description and the corresponding actors involves for the integrated system.

Record Transaction Release of Business Permit Recording of transaction Office of the Mayor releasing the approved business permit after completion of requirements and fees   Municipal Treasurer Office of the Mayor  Taxpayer .