EFFECT OF E-FPS TO EFFICIENCY OF COLLECTION OF REVENUE DISTRICT ORDER #45 FOR THE PERIOD 2008-2013

EFFECT OF E-FPS TO EFFICIENCY OFCOLLECTION OF REVENUE DISTRICT ORDER #45

FOR THE PERIOD 2008-2013

CHAPTER I

THE PROBLEM AND ITS SETTING

This chapter presents the introduction, background of

the study, theoretical framework, and statement of the

problem, hypothesis of the study, significance of the study,

scope and limitation, and definition of terms.

Introduction

For the past few years the financial adviser of

the Philippines is anxious about how the economic status

will grow faster and also on how they will provide it, by

improving the procedures of each department. Adviser

perceived that-by global adaptability and improved operating

system of each Bureau the finest succeed will be at hand.

One legatees of these implementation is the Tax Payer, The

Bureau of Internal Revenue most especially to their

regulation because processes will be more at ease and also

this implementation is favorable to the government for the

total realize revenue. They undergo to different system just

to meet their economic range of stability but still, the

trading scheme is bringing about a small percentage proceeds

to Philippines budget. And it is understood that the system

[1]



is not suitable to use by the market. Since the Philippines

is now practicing the transformation of the system they

decided to implement a web-based trading management system

that allows users to gather relevant information through

their computer from the online system we can see how the

average of return in the Philippine BIR collection increased

up to 28.99% for the last five years.

Background of the Study

Payment of the income tax may either be manual or

electronic which may the tax payers can choose from one of

the four (4) modes of payment which are a) Over-the-counter

cash payment, b) Bank Debit System c) Check Payment System

and d) Electronic Filing and Payment System.

Manual payments are made through any Authorized Agent

Bank (AAB) within the jurisdiction of their registered

Revenue District Office (RDO) or the Revenue Collection

Officers (RCOs), as applicable. On the other hand,

electronic payment can be made via mobile phone through G-

[2]



Cash for tax returns not exceeding P10000 as prescribed by

RMO 20-2005.

The Researchers were inspired by the State of the

Nation Address (SONA) of Pres. Noynoy Aquino on using Web-

based System in different Government Agencies including the

Bureau of Internal Revenue and also the researchers inspired

by their Parent concern regarding to the existing process of

BIR last July 15, 2012.

Since the topic was so interesting and settle a wide

curiosity for everyone, the researchers aim to develop the

usage of an electronic-based or the Electronic Filing

Payment System collection in the Bureau of Internal Revenue,

yet they are still using a manual system in their

transactions, payments and even in generating reports

wherein the taxpayers still have to go to BIR office to

complete their transactions. The system is consisting of

some significant modules in order to satisfy the

management’s needs as well as the customers’.

[3]



The implementation of this new System in the

Philippines was started on October 31, 2001 by the former

Pres. Estrada when he approved the first implemented Full

Integrated Tax System (ITS), a Rollout Acceleration Program

that facilitated the full utilization of tax computerization

in the Bureau's operations. This line is originated from the

latter services named as Large Taxpayers Service (LTS) and

the Excise Taxpayers Service (ETS).

After Pres. Estrada’s Administration, Pres. Gloria

Arroyo was elected as the new President and she conducted a

new plan regarding the BIR’s System that focuses to the

technology-based system that promotes the paperless filing

of tax returns and payment of taxes. It was also adopted

through the Electronic Filing and Payment System (e-FPS).

President Arroyo instructed the commissioner to make the

workflow of bureau easy to access that can create a good tax

process.

At last Pres. Noynoy Aquino Administration came, in his

inauguration on June 30, 2010 a former BIR Deputy

[4]



Commissioner, Atty. Kim S. Jacinto-Henares assigned to

develop a filing of tax evasion cases under the RATE

Program, in compliance with the SONA pronouncements of

President Aquino.

For the first time in its history, it broke the P 1

Trillion barrier collecting the biggest revenue in a year.

Despite economic challenges and natural calamities that hit

the country, the BIR still collected revenue amounting to

P.1.216 trillion which represent 97.05% of the projected P

1.253 trillion revenue in 2013.

From the time when the BIR is currently undertaking an

Enhanced Electronic Tax Information System Project in or

der to upgrade its current Integrated Tax Systems into

a unified, The solution on the current tax system issues on

the present organizational structure of the BIR include the

difficulty in integrating processes and the researcher might

think that there are too many management, uneven allocation

of resources at the national, regional and district offices

about workload and revenue potential and they were facing

such issues.

[5]



The proponent chose the study due to substantial cause

of the laws and regulations which is complicated to act

upon, giving documentary requirements that are burdensome

for the tax payer, a system that is prone to undue exercise

of discretion, and susceptible to avoidance and evasion.

Over and done with this regulation and system of the Bureau

of Internal Revenue, the researcher’s perceived that many

businesses and corporations are subject to garnishment and

levy the property due to disturbances in the bureau process.

The variables under the study are: Tax Payer or one of the

end user of the System, Taxable Income of the Businesses or

the Corporation, Full Automation and Computerization of the

System, Agency with Fiscal and Administrative Flexibility,

professional, highly skilled, morally upright, motivated and

satisfied employees to work with the system.

The Speech of Benigno S. Aquino III, the President of

the Philippines to the 106th Anniversary of the Bureau of

Internal Revenue on August 2, 2010 at Quezon City indicated

reason why the Government discern to recover the Philippine

[6]



Economy by implementing web-based system and revamp it into

an efficient system that can the tax payer, bureau and

government apply and used. A speedier, secure and more

accurate returns processing and repayments services will

actualize, maybe we might come to the point that in any

transaction the avoidance of the need to write checks for

the payment of tax accounts will come, and also the

completion of simpler, user-friendly return forms that uses

fewer paper transactions and, as a result, a lower error

rate and a more effective and efficient use of business

hours that have as a feature and data validation for checks

to safeguard against the input of errors on the part of the

customer. The study helps to provide instant acknowledgement

of returns in the future.

This study represents how BIR collection will increase

revenue that is collected earlier than the usual. Tight

expenses will mean savings of the budget. Tax collection

officers will decrease and management can alter their

personnel to the other job descriptions to focus on other

[7]



department that is undermanned. Taxpayer will also be more

at ease and encouraged to pay taxes because of smooth tax

payment process. Taxpayer will guarantee that paying online

will save more time.

Conceptual Framework

Figure 1: E-FPS Effectiveness: Convenience, Time Efficiency,

And User Friendly.

The Electronic Filing and Payment system is a system

that helps taxpayer to file and pay their taxes through

online. The system gives convenience to taxpayer by using

the system, also through the system taxpayers who have no

time in paying their personal taxes can take advantage of

what it offers and the system is surely a very user-friendly

that its features can easily be understood and learned. By

these variables the study aims to show the effect of

[8]

Electronic Filing and Payment System

Convenience

Time Efficiency

User Friendly

Effect of E-FPS to Efficiency of Collection in

Revenue District Office #45 for

the period 2008- 2013



Electronic Filing and Payment System on the users of E-FPS

and the reasons behind why other part taxpayer population is

not using the system.

Research Paradigm

Figure 2: The Define Constraint of Analysis and

Interpretation of Electronic Filing and Payment System

through its Effectiveness

Source: As completed by the research

The Effectiveness of Electronic Filing and Payment

System: Constraint can be analyzed and interpreted by using

several cases instrument and it is common to all research,

by using survey questionnaire to gather the data and use it

to as reliable proof and evidences for searching the impact

of E-FPS in the Bureau of Internal Revenue.

[9]

Electronic-Filing and

Payment System: Constraint

Analysis Interpretati

on

Effect of E-FPS to Efficiency of Collection in

Revenue District Office #45 for

the period 2008- 2013



Statement of the Problem

The study intends to find out the Effect of Electronic

Filing and Payment System (E-FPS) to Efficiency of

Collection of Revenue District Order #45, for the period

2008- 2013. But more importantly the path towards the

attainment of our vision is riddled with several obstacles

the most significant are the following:

1) How do Taxpayers of Marikina access payment under the

E-FPS of the BIR based on:

1.1 Accessibility

1.2 Ease of Use

1.3 Convenience

2) How do Employees of Revenue District Office #45

assess the payment using E-FPS by Marikina Taxpayer

based on:

2.1 Accessibility

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2.2 Ease of Use

2.3 Convenience

3) Is there any significant difference on the assessment

of taxpayer (user of E-FPS) and BIR Revenue District

Office #45 employees on the efficiency of tax

collection due to E-FPS?

4) Is there any difference on the efficiency of tax

collection of Revenue District Office #45 for the

period 2008- 2013?

Research Hypotheses

1. There is significant difference between the revenue in

the year of 2008 to 2013 in Marikina.

2. The degree of satisfaction of taxpayers in using E-FPS

to the efficiency of collection of revenue in district

order #45 for the period of 2008 to 2013.

Significance of the Study

The research is beneficial to those students that are

researching related topics. The students will be aware to

[11]



the present system of the BIR and the research will also

serve as a guide for their further study of their own.

Taxpayers will have the confidence on the process and

on the BIR itself. Taxpayer will also be more at ease and

encouraged to pay taxes because of smooth tax payment

process. Taxpayer will be guaranteed that paying online will

save more of their time and money. Tax information will give

the taxpayer knowledge on how much is the revenue collected

by the government.

BIR collection will increase revenue collected earlier

than the usual and expenses will be tightened and that means

saving that can be allotted as a supplemental budget to

other department inside or outside the BIR.

The research will be beneficial to the Government as

they try to improve the fiscal policy and service to the

nation. The Government’s revenue will increase and have a

large budget that can be used of public welfare and pay debt

[12]



deficit as it tries to improve the quality of life and

economy.

As the Government improves and provides jobs there will

be more jobseekers. Jobseekers, if not yet, as a future

direct taxpayers will benefit because they will know the

different ways and means they have in paying their

respective taxes.

The Philippines tax collection system, as it stands, is

likewise far from perfect. Revenue official and personnel

acknowledge that many loopholes in the system still exist,

and leakages have still not been totally plugged.

These technologies can serve a variety of different

ends: better delivery of government services to citizens,

improved interactions with business and industry, citizen

empowerment through access to information, or more efficient

government management. The resulting benefits can be less

corruption, increased transparency, greater convenience,

revenue growth, and/or cost reductions.

[13]



Scope and Limitation

The Bureau of Internal Revenue has one hundred twenty-

three (123) Regional District Offices here in the

Philippines. However, the researcher opted to conduct its

research at the Regional District Office # 45: Marikina

City, Philippines for knowing how they provide frontline

assistance and service to taxpayers, pre-processes and

encode key information’s from returns payment forms,

Conducts field audit investigation of Tax Cases, Undertakes

collection of taxes through summary remedies, and also how

they manages forfeited properties/acquired assets within the

RDO's jurisdiction.

The One Hundred Twenty-three (123) Regional District

Office is all using web-based information system but the

research is focused only on the regulation of Marikina

Regional District Office most especially the effect of the

new implemented System on the Tax Payers, Bureau Employee

and to the government itself.

[14]



The Bureau is tasked to collect close to 70 percent of

revenues higher than the necessary to finance government’s

expenditures it is because of using E-system. Higher revenue

collection will allow greater fiscal space for priority

spending on infrastructure development and social services

such as school buildings, health centers, farm-to-market

roads, and irrigation that, in turn, will enhance our

country’s competitiveness and stimulate higher growth.

The research has a limited factor that focus only on

the effect of system to the taxpayers who are using

Electronic Filing and Payment System (E-FPS). The research

conducted surveys on four-hundred (400) respondents. The

area of this research focused on the development of the

Marikina Regional District Office and those are the

taxpayers that are using E-fps and the taxpayers that are

not using E-FPS.

[15]



Definition of Terms

Accessibility - A general term used to describe the degree

to which a product, device, service, or environment

is accessible by as many people as possible.

Administrator - Person who is responsible for running

technically advanced information systems.

Client - User’s that are login inside the system

Attachment- A requirement given by the Bureau; including the

Identification of the Tax Payer, Receipts and other proceeds

document in the transaction.

Bureau of Internal Revenue- is an attached agency

of Department of Finance. It collects more than one-half of

the total revenues of the government. Its main functions

govern with the powers and duties is Assessment and

collection of all internal revenue taxes, fees and charges;

and enforcement of all forfeitures, penalties, and fines

connected therewith, including the execution of judgments in

all cases decided in its favor by the Court of Tax

Appeals and the ordinary courts. It shall also give effect

to the administration supervisory and police powers

[16]

http://encyclopedia.thefreedictionary.com/Department+of+Finance+(Philippines)



conferred to it by the National Internal Revenue Code and

special laws.

E-Alpha list – (Electronic Alphabetical list) corporations

submit electronically through the BIR Website the list of

its employees earning purely compensation income with the

corresponding amount of tax withheld for each employee

indicated.

E-commerce- Refers to the process of marketing, buying

and selling of products and services on-line. Regulations to

define the impact of the E-Commerce Law (RA 8792) with

respect to tax administration, such as electronic filing of

returns, e-payment of taxes, electronic issuance of invoices

and receipts, and the redefinition of tax venue and

jurisdiction for business transactions effected

electronically.

E-Filing- uses BIR-supplied validation and computation rules

to check the completeness and accuracy of taxpayer inputs.

E-Government- refers to the use by government agencies of

information technologies (such as Wide Area

Networks, the Internet, and mobile computing) that have the

[17]



ability to transform relations with citizens, businesses,

and other arms of government.

E-Payee - Through e-Payee, corporations electronically send

to BIR the Annual Information Return of Income Tax Withheld

at Source for payees who have income other than compensation

income, such as consultant’s fee, retainer’s fee, rentals,

contractor fees and other professional fees. The partners of

the BIR in the implementation of e-Submission (especially e-

Alpha list and e-Payee) are the Semi-Conductors and

Electronics Industries of the Philippines, Inc. (SEIPI), E-

KONEK and ITC Company.

E-Payment System-is the on-line payment and confirmation

process between the Automated Data Capture System (ADCS) and

participating banks.

E - TIN System - e-Registration Project of the BIR provides

convenient registration services to taxpayers via

internet. The e-TIN accessible via the Internet thru the

icon, provides on-line facility to secure Taxpayer

Identification Number (TIN).

Efficiency - the ratio of useful work to resources.

(Processor and end- user)

[18]



Excise Tax Payer Service- a tax on certain things that are

made, sold, or used within a country. It is an internal tax

levied on the manufacture, sale, or consumption of a

commodity or any of various taxes on privileges often

assessed in the form of a license or fee.

Full Integrated Tax System -A rollout acceleration program

that facilitate the full utilization of tax computerization

in the Bureau's operations. This line is originated from the

latter services named as Large Taxpayers Service (LTS) and

the Excise Taxpayers Service (ETS).

Functionality- The capacity of a computer program or

application to provide a useful function.

Fiscal year- means an accounting period of twelve (12)

months ending on the last day of any month other than

December.

Information and Communication Technology (ICT) - is a term

that includes all technologies for the manipulation and

communication of information. It encompasses any medium to

record information; to broadcast information; to communicate

through voice and sound or images

[19]



Large Taxpayers Service (LTS) -BIR’s System that focuses to

the technology-based system that promotes paperless filing

of tax returns and payment of taxes.

Revenue Data Centers (RDCs) - shall be responsible for the

operation, management, security and maintenance of the

distributed information systems and ensuring the integrity

of payment data transaction upload to the Integrated Tax

System (ITS) database.

Security- its objective is to establish rules and control

the system against the attack over the internet.

SONA (State Of the Nation Address) - is an annual address by

the President of the Republic of the Philippines to a joint

session of the Congress of the Philippines. It is mandated

by the 1987 Constitution, and must be delivered every fourth

Monday of July at the Plenary Hall of the Batasang Pambansa

Complex in Batasan Hills, Quezon City, Metro Manila. SONA

is a way to inform the public about the status or state of

the Philippines, the accomplishments and promises by the

President of The Philippines.

Tax Payer's Identification Number (TIN) - is new unique

registration number that is used for Identification of

[20]

http://en.wikipedia.org/wiki/Metro_Manila

http://en.wikipedia.org/wiki/Quezon_City

http://en.wikipedia.org/wiki/Batasan_Hills,_Quezon_City

http://en.wikipedia.org/wiki/Batasang_Pambansa_Complex

http://en.wikipedia.org/wiki/Batasang_Pambansa_Complex

http://en.wikipedia.org/wiki/1987_Constitution

http://en.wikipedia.org/wiki/Congress_of_the_Philippines

http://en.wikipedia.org/wiki/Joint_session

http://en.wikipedia.org/wiki/Joint_session

http://en.wikipedia.org/wiki/Republic_of_the_Philippines

http://en.wikipedia.org/wiki/President_of_the_Philippines



dealers registered under VAT. It consists of 11 digit

numerals and will be unique throughout the country. First

two characters will represent the State Code as used by the

Union Ministry of Home Affairs. The set-up of the next nine

characters may, however, be different in different States.

TIN is being used for identification of dealers in the same

way like PAN is used for identification of assesses under

Income Tax Act.

User - an agent, either a human agent (end-user) or software

agent, who use a computer or network service. User can be

either a Guest or Client.

[21]

http://en.wikipedia.org/wiki/Service_(systems_architecture)

http://en.wikipedia.org/wiki/Computer_network

http://en.wikipedia.org/wiki/Computer

http://en.wikipedia.org/wiki/Software_agent

http://en.wikipedia.org/wiki/Software_agent

http://en.wikipedia.org/wiki/Intelligent_agent



CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

Several studies and other supporting information are

presented in this chapter to further establish and coagulate

this research.

Related Literature

The development of every system operation is one of the

most numerous researched topics in the field of financial

management especially when it talks more deeply with the

raising funds, revenue collection and also with the gains

and profitability of mere using that system. To have a

profound understanding in the study, the researchers intend

to use diverse reading materials correlated to the online

system. These materials such as books, magazines,

newspapers, thesis and other web articles that is essential

in broadening the knowledge of the researchers. These will

assure that the researchers can achieve their target

objectives by getting ideas on other related studies and

make improvements as possible. This chapter discusses

various studies and theories about online system in the

business proceeds.

The facts and figure collected by the researchers is

focus on the development of on-line system of the Bureau of

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EFFECT OF E-FPS TO EFFICIENCY OF COLLECTIONOF REVENUE DISTRICT ORDER #45


Internal Revenue or online trading and its advantages to the

economy, consumers and businesses. Security measurement

information in terms of payment and customer’s privacy to be

considered in developing an online system are also obtained.

The researchers also added different techniques on how

to gain web visitors and eventually convince the taxpayer to

be closer with their obligation, which is about to pay tax.

Some of the problem intuition with taxation is also being

discussed to understand why the researchers chose to study

the Impact of On-line System in Marikina BIR: for Improved

Revenue Collection.

This evaluation comprises of books, articles, documents

that emphasize the same subject matter or other concepts of

the study.

Technology is the great contributions and inventions of

every developer in the world today. Most of the time they

perceive as efficient and effective factor to make our

workload easier than the usual, In consideration, it

happened that these will also bring a lot of misconduct keen

on our ability to do such. Internet use through online is

one of the activities that most of the people knows and they

already patronize by different ages with the aptitude to act

[23]



upon. It is also used into different mode of function such

us for fun or entertainment, educational and for businesses.

Instances where in organizational management directly

referring to their system processes, most of them use

electronic equipment and automated technique on operation

just to fill the duties.

As a result, the business copes up countless data and

information to support their set-up faster and convenient

than before. Electronic websites are utilized to allow the

leaders of the BIR to present perceptions on public issues.

The information tool like electronic website will help the

tax payers and the BIR in paying and collecting tax. In

addition, upgrading the system will increase the capability

and the capacity of the BIR collecting process and reduce

costs in terms of hiring trustful employees for them to

check the financial statement of each company that are

registered in BIR. The tax payers will also be helped by

this upgraded system in reducing the time that will be spent

in presenting financial statements as evidence to the right

amount of tax to be paid.

Good Governance for Information Technology

[24]



FA Magno, RB Serafica (2001) states that the usage of

Information Technology is for Good Governance it can bring

as many as fruitful things can be.

Proven by the traders of online ordering system

According to Aldin, Brehmer & Johansson (2004) in

accordance with the outcome proven by the online thesis

entitle the effect of Online Ordering System it is shown

that the network has become outlook for the trader to file

documents in automated form and used computerized system in

payment and internet connection. The amazing growth and

rising of the acceptance of the World Wide Web have become a

key to attract more payer and businesses to engage the

benefits of Electronic Filling and Electronic Payment (E-

fps).This E-fps is sited as any form of business transaction

in which the parties interact electronically rather than by

physical exchanges or direct physical contact. The

happenings altered the traditional trading and enhanced

deals and exchanges of commodities and information. It is

not just considered as single entity of technology but a

combination of technologies where applications, processes,

business strategies are necessary to do business

[25]



electronically. The availability of goods and services with

the click of a mouse is changing the global setting.

Cost Efficiency of having electronically developed system

According to Burleson (2005), the design of every

website will always depend upon to the trading procedures of

every firms and organizations and also it is essential to

consider the target market. A website must be simple and

focused site to succeed.

One that is easy to build, maintenance-free, low cost,

trustworthy, and a powerful traffic-builder and customer-

converter. Having the right tool and the right product alone

doesn’t ensure the success of the website. To be effective,

the Website must be designed with comprehension to the

target audience as foremost consideration. Website designers

must balance design considerations and capabilities with

client objectives and the consumer’s level of understanding

in the modern technology by Geissler (2001).

Revenue reduce expenses, increase local sales and returning

towards the resources

As with any revenue reduction, local governments will

have the option of reducing local Expenditures, increasing

local sales tax rates or expanding bases (where

[26]



permissible), or turning toward other sources of revenue

(primarily the property tax). The outcome of this decision

is likely to vary widely across the country, and

perspectives of the desirability of the resulting policies

are also likely to vary widely. One indisputable benefit of

e-commerce is its ability to reduce transaction costs. For

consumers or buyers, this is most likely to take the form of

lower search costs and better information on products and

prices. There could be drastic savings in production and

delivery costs of electronic or digital goods as well. (Lee,

2006)

Improvements by upgrading the system

According to Francisco A. Magno (2001) and Obi (2010)

the improvement of the information systems in managing and

upgrading processes that will enable all Local Government

Unit to utilize the services to the people inside the

community. The system will help the LGU to serve the people

with integrity and wholeness because of the transparency

which the public will use to check all the information to

give them the knowledge needed to be included in the growth

of the economy. The ICT (Information and Communication

Technology) give emphasis on the enhancing the speed and

[27]



quality of local decision-making and public delivery

systems. Identification, mapping, and evaluations of the

initiatives would be valuable in strengthening local E-

governance mechanisms in the country. The improved system

which precisely developed and continue the growth of the

technology in tax collection of BIR will give the taxpayers

transparency and truthfulness. Information and Communication

Technology (ICT) has become and will continue to be an

integral part of the day-to-day life of every Filipino

across all levels of our society. The occurrence of

communication technology around the world necessitates that

government get on a cohesive and coordinated strategy on how

to prepare its citizens to survive, live and thrive in a

digital world. (The Philippine Digital Strategy

Transformation 2.0: Digital Empowered Nation 2011) The main

objective of the paper is to have a competitive society

where everyone has a reliable, affordable and secure

information access in the Philippines.

Online Communication focuses Goal Awareness

According to Chaffey (2009) .Most of Today’s Businesses

and System Function developed through their desire to

maintain and upsurge the return. They think that it is

[28]



critical for companies to know how do they attract customers

to their website, engage them to turn into paying customers

and also retain them in returning to your website. Online

communications techniques used to achieve goals of brand

awareness, familiarity and favorability and to influence

purchase intent by encouraging users of digital media to

visit a web site to engage with the brand or product and

ultimately to purchase online or offline through traditional

media channels such as by phone or in-store.

Advantage of using e-commerce in processing

Stable countries in the North side are the first

implementer of electronic used in trading system, they

recognize that these usages to help individuals to provide

accessibility and aptness in transaction. In the

Philippines, e-commerce is mostly being implemented by major

retailers and multinational corporations for bank-to-bank

exchange. A number of Business-to-consumer transactions have

emerged through the years such as auctions, online shopping,

and online banking (Lacson, Pasadilla, 2006). This just

shows that Filipino businesses welcome this new opportunity

in selling goods since 16% of the population is using

Internet. This new marketing strategy will not only benefit

[29]



those big companies but also the small businesses who cannot

afford to advertise their products. Just by creating a

website in a very affordable cost would make the business

grow in terms of sales and enhance the company image as

well.

Philippine firms have yet to fully tap the potentials

of e-commerce that will help them to compete in domestic and

global markets. In the process of preparing themselves to

conduct e-commerce, these firms will be changing the way

they do business. These changes are expected to have an

impact on the welfare of Philippine workers. Most efforts to

measure the economic effects of e-commerce—including those

on workers’ welfare—have focused on the U.S. and Europe, who

are considered to be the leaders in e-commerce. (Roberto,

2002)

In general, it discuss the changes in the nature of

work from the front to back office is likely within the

sectors performing services Employment demand for these

industry, they may be focused away from agents and blue

collared workers, toward higher management and executive

staff.

Increase of transaction sales growth annually

[30]



As Filipinos entered the 21st century, local e-commerce

transaction reached Php1 billion. It shows that there’s at

least one billion transaction sales growth annually. If this

trend continues, figures can reach up to Php20 billion as

more businesses conduct online transactions. If significant

economic growth takes place in the next 10 years, these

estimates may even double or triple (Toral, 2004).

Bad Effect of e-commerce in the government

The existing tax conduct of internet transactions has

not yet resulted in substantial revenue losses for state and

local governments. However, as e-commerce grows dramatically

in the very near future, those losses will become much more

significant. We have considered the effects of e-commerce in

the context of other important sales tax base trends, and

have also accounted for the tremendous importance of

business-to-business transactions. To summarize the expected

effects: the inability to uniformly tax e-commerce will

result in a new revenue loss to state and local governments

of $10.8 billion. Next $10.8 billion, approximately $4.3

billion (or 40 percent) represents direct and indirect

losses to local governments.

[31]



The loss is a little over one percent of the likely

2003 total local tax revenues. If state and local

governments were able to tax e-commerce transactions as if

they were local transactions, an additional $20.1 billion

could be collected. The combined effect of trend base losses

and e-commerce will be a revenue loss to the state and local

governments of $23.9 billion. Despite the fact that local

governments rely far more heavily on property taxes than

sales taxes, they still stand to lose significant revenues

in 2003 as a result of the inability to tax ecommerce. Local

losses will vary widely, both across and within states,

depending on the relative importance if sales taxation

(Bruce, 2003).

E-commerce has become a standard method of providing

distributed information to many different platforms. It is

being implemented by a growing number of companies to be

more completive in corporate world. All companies need to

make a step forward towards a new technology. To be able to

compete with the global market, e-commerce was a good

answer. (Lanvin and Maggarqul, 2006)

Business with the use of e-commerce

[32]



Businesses who engaged into Electronic Commerce (e-

Commerce) have been observed to gain a competitive edge in

the field of Marketing in terms of accessibility,

convenience and availability. Since the internet is

accessible by people globally, the customers are no longer

limited within the vicinity of the store. Anyone can visit

the store anywhere, anytime without hassle. Just by

navigating the store, the customer can choose the products

and purchase it without going to the store directly .E-

commerce proves to enhance the way usual business

transactions occur and helps lessen the time and effort

consumed by the company and customers as well (Deanna and

Fritz, 2006). With these, a good relationship with their

consumers will be established and their objective of

increasing their sales will be achieved (Kim and Katherine,

2004).

Through internet, E-commerce offers a simplified

approach in business deals and gives a new option for

selling and buying the company’s products and at the same

time not only selling and buying of products but also

advertising the site. (Roso and Navarro, 2006) Since the

products are available in the web, the more chances of

[33]



gaining exposure to target customers and can eventually

encourage them to purchase an item. It’s the most affordable

way of advertising compared to some paid commercials that

even small businesses can easily implement.

Benchmark for the over-all performance

In the Market Place Philippine Stock Exchange Index

(PSEi) is worn to become a benchmark for the over-all

performance of our local stock market using web-based

trading system. Web-based system of trading is the

investor’s key to have Non-stressful and Timeless Procedure.

It is the reason why investors become more attracted to

invest. Through that system of transaction the revenue and

gains of the stock industry increase in the highest return

than the usual. (Bangko Sentral ng Pilipinas, Tetangco Jr.,

Philippine Deposits Insurance Company- PDIC, TETANGCO JR,

2007)

Website of each firm’s and establishment’s appear

with a direct significant influence on sales and corporate

image, and are expected to contribute to overall customer

satisfaction (Hossain, 2007). The First step to get the

trust of each customer is by letting your company updated to

the technology that a corporate have, letting your market

[34]



aware and informed by your simple and well-developed website

then take it all to delight your customers. It will

assuredly bring good image to your companies which created

positive web experience to the customer. This can be done by

having transparent interface, rich content, easily

accessible information and having a design that facilitates

multiple audiences. This is simply emphasizing the

importance of knowing the target visitors as they have

different tastes in terms of color and design as a whole.

Also, a good design is not enough to make your customers

stay in the website; it must be informative as well

especially on the product details.

Website security

Mansoorian (2006) also refers that the website security

is known as the protection of confidential information of

the consumers. This is one way of gaining the customers

trust because customers want to believe that the information

they provide will be protected and used only in appropriate

ways. Businesses offered a lot of services, product, and

resources, most of their offerings are almost the same and

the only difference is the security that the companies can

give from their presents. Since most of the companies employ

[35]



websites as one of their marketing strategies, 6competitors

are also spreading. The company must take into

considerations the key factors in order to have a successful

online marketing system starting from the target audience,

web design, interface, security in terms of payment and

customer information, content and even the smallest details

of a website.

Confidentiality of an Internet based processed

Internet users will be unlikely to use the Internet

on a routine basis for commerce unless they have confidence

that their communications and data are safe from

unauthorized access or modification. Confidence in the

system itself depends on the availability of effective means

both for protecting information systems attached to

telecommunications networks and for authenticating and

ensuring confidentiality of electronic information to

protect data from unauthorized use. It also requires well

educated users who understand how to protect their systems

and their data. Unfortunately, as noted in the US Framework

document, there is no single "magic" technology or technique

that can ensure either security or reliability. Instead this

requires the use of a range of technologies including

[36]



encryption, authentication, password controls and firewalls

as well as a trustworthy key and security management

infrastructures. (Patterson, 2001)

Innovation of Technologies brings potential responsibility,

obligation and Expertise

Automated transaction means a transaction conducted or

performed, in whole or in part, by electronic means or

electronic records, in which the acts or records of one or

both parties are not reviewed by an individual in the

ordinary course in forming a contract, performing under an

existing contract, or fulfilling an obligation required by

the transaction (Uniform Electronic Transactions Act,

Section 2, 1999). This Act informs the parties that they

have both an obligation when it comes in transaction

especially in terms of electronic transaction. A contract

may be formed by the interaction of an electronic agent and

an individual, acting on the individual's own behalf or for

another person, including by an interaction in which the

individual performs actions that the individual is free to

refuse to perform and which the individual knows or has

reason to know will cause the electronic agent to complete

the transaction or performance (Uniform Electronic

[37]



Transactions Act, Section 14, 1999). This article discuss

about when getting into electronic transaction, parties can

both agree to the terms and condition to make the process of

transaction much reliable.

Developing a technology for the companies/countries

productivity should be the main concern of the developer. As

stated, the state shall give priority to research and

development, invention, innovation, and their utilization;

and to science and technology education, training, and

services. It shall support indigenous, appropriate, and

self-reliant scientific and technological capabilities, and

their application to the country's productive systems and

national life. (Article XIV Section 10, Science and

Technology, 1986)

Innovation of technologies to all potential sources

must benefit not only the company but also the country.

According to Article XIV Section 12, Science and

Technologies, (1986), “The State shall regulate the transfer

and promote the adaptation of technology from all sources

for the national benefit. It shall encourage the widest

participation of private groups, local governments, and

[38]



community-based organizations in the generation and

utilization of skill and expertise”.

Building Communication through the help of Internet

Online Marketing helps company reach their target

customer thru the use of Internet. Internet marketing help

the company to put up a better communication and improved

relationships between customers and the company. As stated

on the Manila Bulletin (2011), “The Internet provides

endless opportunities for your businesses to market your

company and your product at the comfort of your homes and

offices. Internet marketing may be described and defined in

many ways, depending on how you make use of the Internet to

help your business grow”.

Internet used can generates income

Online Marketing can generate much revenue not only in

the Company but also the other country. According to Emmie

Manila Bulleting (2012), the company expects its overall

business in the region to grow 100 percent year-on-year and

up to “infinity” in the Philippines, which at this point,

has only 10 percent of its travel market online, as opposed

to neighbors like Singapore, with 35 percent CEO Dan Lynn

Explained.

[39]



Through the effort of Miguel Angel Gutierrez, the

Director of the Latin American Center for Globalization and

Future Studies, Buenos Aires, Argentina the recognition of

rapidly increasing number of the people using the web all

over the world is extremely high. New strategies built in

Latin America to improve the standard of revenue collection

and the growth of the economy. The success of each firm in

upgrading to communicate to the public online helps and

broaden the transfer and the process of business

transactions to efficiently give the firms the opportunity

to earn more profit. The tax collection of Latin America

after improving the system into online increased the

collection of tax. The opportunity that the BIR Marikina

Branch can gain profits in revenue collected will be more

likely to happen. It is by earning and collecting more tax

and it will as surely help the economy of the Philippines

most expected to abstract poverty.

The Judo Strategy that was developed by David B. Yoffie

of Harvard Business School and Michael A. Cusumano of the

MIT Sloan School of management and the concept of a smaller

and less equipped firm uses its competitor’s strength,

resources, and size against it. The smaller firm, using the

[40]



strategy, moves to improve quality systems, improve and

develop the process which will help the firm to improve the

quality of gathering revenues, and maintaining the posture

of the firm. The use of Judo Strategy will help BIR in

taking the leap of faith on investing upgrading the process

of collection to manifest and be competitive to other firms.

Synthesis of Literatures Reviewed

Computer is a great technology in our life; most of the

people rely on computer nowadays. It serves us tool to

lessen work for providing a specific output. Most of office

work has nominal human errors, redundant data and time

consuming. Some of manual process is a time consuming.

Improving Processes is the most efficient ways to furnish

when developing output. It can provide a higher return and

more considerate. World Wide Web Development devours a great

impact to everyone most especially to the individual who is

considered as the direct and effective user of the system or

the said implementation. Based on the information gathered

by the researchers, company who engages into online Trading

are more likely to be more competitive in the business

field. The company will have a good image, thus attracting

[41]



more customers. According to the related literature and

studies collected, e-commerce also promotes convenience to

both consumers and company. Yet, to have a successful online

trading, there are several criteria to be considered first

before developing website. These are the target visitors,

the web design, security, maintainability, reliability,

handiness, quality and ease of use.

Most of the collected related literature states how

computerized and web based trading system helps to provide

profits and gain in the usual revenue collection. Some of

them declare that using online system can bring a disaster

and too much expense to the business.

The researchers aim is not just build a website but

a customer-converter online marketing by providing adequate

details of the products, user-friendly interface, and

secured payment transaction, search-engine friendly and

easy-to-maintain environment. The proposed system will not

just build to advertise all over the web but to provide good

services to the target visitors. These considerations will

help the company in gaining a good image and eventually

attracting more customers to patronize their means of

operation.

[42]



CHAPTER III

RESEARCH DESIGN AND METHODOLOGY

This chapter presents the research design, the

respondents of the study, the research instrument used, data

gathering procedure and the statistical treatment

Research Design

The researchers discern to use descriptive-analytic

method to accomplish the purpose of the study. The method

for data collection used was the multi-aspect questionnaire

method in business. This study is descriptive by reason that

it attempts to identify what could be the impact of using

online system in the regulation of the bureau of internal

revenue and what should be the effect this changes to the

users of the proposed system. The survey was made to get the

respondents insights for purposes of data gathering.

The study is descriptive by reason that it attempts to

identify what could be the factors necessary towards the

Bureau of Internal Revenue regulations and system

productivity. The researchers used Likert’s Scale to measure

the degree of the answers of the respondents in terms of

satisfaction.

[43]



Data analysis

In this section the statistical tools were used to

answer the questions that were posted in the statement of

the problem. Standard Deviation is the tools used to compute

the reliability of the study that helped to the researchers

to know if the questions formulated were reliable to ask.

Descriptive Analytic is a set of brief Descriptive

Coefficients that summarizes a given data set, which can

either be a representation of the entire population or a

sample. The measures used to describe the data set are

measures of central tendency and measures of variability or

dispersion.

Standard Deviation The researchers identified the

standard deviation as one the tool we used. Standard

deviation defined as the spread or dispersion of the set of

a data in relation to the study. The standard deviation

helped the researchers to indicate the typical distance

between the scores of distribution and the mean. The higher

the standard deviation, the greater the spread of data.

Local of the Study

Population The agreed designed questions were made into

questionnaire and distributed to the respondents inside the

[44]



jurisdiction of Marikina City. The questionnaires were

distributed to the 200 Taxpayers who use and not using the

E-FPS as their mode of tax payment in the Regional District

Office #45.

Sample Mouton (2003) defines sample as an element

selected with the intention of finding out something about

the total population from which they are taken. Sample is a

single item got from the large group of a population who is

being studied for the use of illustration.

Sample Size The sample size was 100 where in the sample

size was defined as the number of observations that

constitutes to it. After getting the sample size, it helped

the study to be more credible. At some point, it could be a

disadvantage when it so happen that the maximum number of

the sample size in correlation was not established or

gathered. In relation to this study, with the help of the

sample size the researcher will knew the components of the

locale of the study. (Morgan, 2008)

Sampling Technique The researchers used the purposive

sampling in order to get data needed for the study. It was

guided on the different classification of the SME, which is

engaging in Capital Budgeting and containing different

[45]



policy with respect to finance. Purposive sampling describes

the long-term proportion with which a certain outcome will

occur in situations with short-term uncertainty. In

addition, purposive sampling is used in accompanying the

different certain or even uncertain outcomes of the study.

The advantage of using this method is it helps the

researchers to know easily the different results. But

sometimes, those results that researchers gathered would

also be uncertain. (Davidson, 2006)

Data Collection

Data Gathering Procedure The questionnaire survey system

is considered purposive as it shall deal with people

involved in the transaction of Tax Filing, Assessment and

Payment: as BIR representatives. The researchers made

questionnaire on impact of E-Fps in Marikina BIR for

improvement in revenue collection.

[46]



Threats to Validity

Subject Characteristics All the respondents have different

perception and even opinion. It is reason why these subject

characteristics are included as one of the threats. The

researchers addressed this by not including question which

can affect their beliefs but those questions can merely

understand by those people who actually did not finish their

studies.

Instrumentation Questionnaire is the instrument used by

the researchers to create a precise qualitative data. This

method utilized questionnaire to obtain information. It can

be done by mail or hand-carried to the intended respondent.

[47]

CHAPTER IV

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter presents the results of data gathered from

the survey and other related observations. These were

analyzed and interpreted to provide specific answers to the

problems presented in the statement of the problem.

Outline of the Discussion:

1. The access payment of Marikina taxpayers under the E-

FPS are discussed by the researchers below.

2. The researchers explained how Employees of Revenue

District Office #45 assess the payment using E-FPS by

Marikina Taxpayer.

3. The researchers explicitly detailed the significant

difference of the assessment of taxpayers and BIR

employees on the efficiency of tax collection due to E-

FPS.

4. The researcher shows the difference on the efficiency

of tax collection of Revenue District Office #45 for

the period 2008- 2013.

5. The hypothesis that the researchers come up were

discussed and explained below to know the difference

between the revenue in the year of 2008 to 2013 in

Marikina.

[48]



Findings and Analysis

The study intends to find out the Impact of Electronic

Filing and Payment System in Revenue District Order #45 on

Revenue Collection. But more importantly the path towards

the attainment of our vision is riddled with several

obstacles the most significant are classified into four. The

manner of obtaining data originated from the desire to

obtains responses from qualified and eligible respondents

who are the users and the non- users of the system in

Marikina district #45 who can stands as reliable commentator

about the effect of the E-FPS to the development of the

collection in the Bureau of Internal Revenue.

These study aim to find out the effectiveness of E-FPS

intuition to the convenience of the users respondents of the

system, the survey states that 70 % of the taxpayer

respondents who is subject to use the system is agree that

[49]



E-FPS brings a bulk number of taxpayer. They are more likely

encouraged to file and pay their tax on time because of new

way of accommodating transactions. Some respondents stated

the benefits’ they got when they were transacting- it

includes the accessibility and cost- effective means of

filing and payment another 30 % states that they never agree

that using E-FPS require more knowledge to access, doesn't

bring security to every taxpayer respondents and it is only

good to use when you are not due.

The perception of the non-users respondents on how they

perceive constraints in the use of the system under E-FPS,

perceive that using E-FPS can brings a lot of gains; less

expenses and less use of time. Also they think that using E-

FPS many will encourage to pay taxes even the respondents

itself who give these passage.

Enable to know what measure can be undertaken to get

the result of the study requires instruments to be used to

become proof of everything. Using survey questionnaire the

researchers guaranteed that the result they might find using

several questions answered by the respondent is directly

supports the problem and it is the measure used by the

researchers. Most of the respondents states that they

[50]



recommend E-FPS to other taxpayer or to potential

taxpayer/users of the system.

The survey is conducted to get opinions from the

respondents whether it is from the perception of the users

or from the non-users of the E-FPS it is as surely engage

with the result of the mere impact of the system in the

taxpayer and in the bureau itself. Also this survey shows

the level of satisfactory of every tax payer in certain

ability or characteristic of the system implemented with the

objective of increasing the number of the tax payer who is

paying and filing their taxes on time.

[51]



Table 1:

Taxpayers (Users)

Statement Mean Interpretat

ion

Accessibility:

1) E-FPS Kiosk are available in all

banks

4.30 STRENGTH

2) The E-FPS is always available in

the internet

4.26 STRENGTH

3) E-FPS is user friendly 4.10 STRENGTH

Ease of Use

1) The instruction with regards on

how to use E-FPS can be

understood

4.20 STRENGTH

2) Online support of the system is

always available when users have

question

4.20 STRENGTH

3) Procedural instruction are

indicated on registration and

submission

4.30 STRENGTH

Convenience:

1) The E-FPS program can be accessed 4.40 STRENGTH

[52]



by users at convenient time

2) The E-FPS secures confidential

information of users through

password requirement

4.10 STRENGTH

3) E-FPS process requests quickly 4.0 STRENGTH

Source: Survey conducted from the Respondents of BIR Marikina RDO#45

[53]



Accessibility

From the above table 1 the taxpayer modified their

opinion by providing the average identical weighted mean

4.30 E-FPS Kiosk are available in all banks, while 4.26 of

the respondents agreed that E-FPS is available in the

internet which make it easy to access, and lastly 4.10 users

of E-FPS agreed that it is user friendly.

Ease of Use

In proportion to the table 1, showed that 4.20 of the

taxpayer agreed that the instruction with regards on how to

use E-FPS can be understood, while 4.20 of the users

concurred that online support of the system is always

available when users have question, while the rest of users

(4.30) considered that E-FPS procedural instruction are

indicated on registration and submission.

Convenience

As indicated on table 1the researchers came up the

result of the Effect of E-FPS to Efficiency of Collection of

Revenue District Order #45 for the period 2008-2013 that out

of 50 respondents of taxpayers 4.40 agreed that the E-FPS

program can be accessed by users at convenient time, and

4.10 said that the E-FPS secures confidential information of

[54]



users through password requirement, while the 4.0 of users

concurred that E-FPS process requests quickly.

Table 2:

Employees of Bureau of Internal Revenue

Statement Mean Interpretat

ion

Accessibility:

1) E-FPS Kiosk are available in all

banks

4.30 STRENGTH

2) The E-FPS is always available in

the internet

4.60 STRENGTH

3) E-FPS is user friendly 4.20 STRENGTH

Ease of Use

1) The instruction with regards on

how to use E-FPS can be

understood

4.40 STRENGTH

2) Online support of the system is

always available when users have

question

4.50 STRENGTH

[55]



3) Procedural instruction are

indicated on registration and

submission

4.30 STRENGTH

Convenience:

1) The E-FPS program can be

accessed by users at

convenient time

4.40 STRENGTH

2) The E-FPS secures confidential

information of users through

password requirement

4.25 STRENGTH

3) E-FPS process requests quickly 4.20 STRENGTH

Source: Source: Survey conducted from the Respondents of BIR Marikina RDO#45

Accessibility

As illustrated in table 2, 4.30 of the employees agreed

that E-FPS Kiosk are available in all banks, likewise 4.60

of the employees concurred that the E-FPS is always

available in the internet, and 4.20 of the respondents

believed that E-FPS is user friendly.

Ease of Use

For Bureau of Internal Revenue Employees illustrated at

table 2, 4.20 of respondents agreed that the instruction

with regards on how to use E-FPS can be understood, and the

[56]



majority of the employees said that the support of the

system is always available when users have question (4.50),

and some employees 4.30 agreed that procedural instruction

are indicated on registration and submission.

Convenience

After the researchers conducted a survey, as

illustrated in table 2, 4.40 of the employees of BIR said

that the E-FPS program can be accessed by users at

convenient time, and some agreed that the E-FPS secures

confidential information of users through password

requirement (4.25), and lastly 4.20 of employees said the E-

FPS process requests quickly.

Table 3:BIR RDO #45 COLLECTION and the Changes in Revenue PercentageCollection PercentageFOR THE YEARS 2002 to 2013

YearRevenue Collection ( In

Millions )

Changes in Revenue Collection

(Percentage)

[57]



2002 1152.252003 1382.52 16.66%2004 1420.23 2.66%2005 1820.45 21.98%2006 2337.41 22.12%2007 2430.25 3.82%2008 1328.37 5.55%2009 2772.62 7.19%2010 3221.7 13.94%2011 2883.08 -11.75%2012 3508.86 17.83%2013 3868.21 9.29%

Source: BIR regional Collection by NEDA Classification for Annual Revenue Collection ofBIR Marikina RDO#45

[58]



Figure 3:Revenue and Tax Effort (in Percentage of GDP)

Source: BIR regional Collection by NEDA Classification for Annual Revenue Collection ofBIR Marikina RDO#45

Figure 4: The Fluctuation of Revenue Collected by BIR Revenue

District Office #45

[59]

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

-15.00%-10.00%-5.00%0.00%5.00%10.00%15.00%20.00%25.00%

The Fluctuation of Revenue Collected by BIR Revenue

District Office



Source: BIR regional Collection by NEDA Classification for Annual Revenue Collection of

BIR Marikina RDO#45

Figure 5:Revenue Collection CY 2002-2013 (In Millions)

Source:BIR regional Collection by NEDA Classification for Annual Revenue Collection of BIR MarikinaRDO#45

[60]

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

500

1000

1500

2000

2500

3000

3500

4000

4500

1152.251382.521420.23

1820.45

2337.412430.252573.132772.62

3221.72883.08

3508.86

3868.21

Revenue Collections CY 2002-2013( In Millions )

Series 12002 2003 2004 2005 2006 (2Q)

2007 2008 2009 (2Q)

2010( 2Q)

2011 2012 (3Q)

2013 2014 (1Q)

0

1000

2000

3000

Revenue Collection ( In Millions )

Revenue Collection ( In Millions )



Metadata

I. About the Data

A. Concepts/Definitions

For this particular statistics, Revenue

Region was classified based on the

Philippine Standard Geographic

Classification (PSGC)

B. Unit of Measure:

In Million Pesos

C. Reference Period:

Quarterly, CY

D. Coverage / Scope

This data covers the nineteen (19) Revenue

Regions and National Office of the BIR.

E. Source and Frequency of Data

Source of Data-BIR 1209

[61]



reports(Consolidated Monthly Statistical

Reports of Revenue Collection)Frequency of

conduct/reporting: Monthly

F. Estimation/Compilation Methodology

The Revenue District Offices (RDOs) of the

BIR process and prepare the BIR 1209 report

and submit it to the Collection Unit of the

Regional Office. All the 1209 reports

submitted by the RDO are then transmitted

to the Revenue Accounting Division (RAD) of

the National Office (NO).The RAD

processes/encodes/prints/analyzes the 1209

reports. If there are no discrepancies in

the reports, the RAD consolidates and

prepares the collection reports for

submission to Top Management / Statistics

Division. In case there are discrepancies,

the RAD informs the RDO/Region concerned

through phone / letters of any discrepancy

noted in the 1209 reports for appropriate

action.

II Dissemination

[62]



.

A. Periodicity of dissemination: Quarterly and

Annually

B. Mode of Dissemination: Hard copy and

electronic through website

C. How to Access: URL: http://www.bir.gov.ph

Source: BIR regional Collection by NEDA Classification for

Annual Revenue Collection of BIR Marikina RDO#45

[63]

CHAPTER V

SUMMARY OF FINDINGS, CONCLUSION, AND RECOMMENDATION

This chapter presents the summary of findings,

conclusion based on the findings, and other recommendation

related to the study.

Summary of Findings

Conclusions

The conclusion inferred from the main problem from

knowing the Impact of using E-FPS to the revenue collection

of the BIR District #45 that is reflected and stated to the

result of the survey. Based on the information and data

presented, the following conclusions are:

Systems and Processing in the Bureau of Internal Revenue

1. The Bureau of Internal Revenue still collected revenue

amounting to P1.216 trillion which represent 97.05 % of

the projected P 1.253 trillion revenue in 2013.

2. The average of return in the Philippine BIR collection

increased up to 28.99 % for the last five years.

3. There are two (2) set of taxpayers; the user, and the

non-user who both agree that the system primarily

increase the number of taxpayer which contribute to

higher revenue collection of BIR district #45.

[64]



4. The survey states that 70% of the respondents are

encouraged to pay on time because of the convenience

and saves a lot of time. Another 30% do not agree with

E-FPS because it requires hands-on knowledge to be able

to access the system. Some even commented that online

is only okay when the payments are not due.

5. The incident of “follow up attachments” is a regular

undertaking in the BIR, the submission of the documents

electronically gives so much convenience and physical

contacts are eliminated.

6. Due to full automation in the BIR it generates an

optimal collection to the agency.

Bureau of Internal Revenue, Users and Non-users of the E-FPS

1. The survey states that 70 % of the taxpayer respondents

who is subject to use the system is agree that E-FPS

brings a bulk number of taxpayer. They are more likely

encouraged to file and pay their tax on time because of

new way of accommodating transactions.

Users respondents stated the benefits’ they got when

they were transacting- it includes the accessibility

and cost- effective means of filing and payment another

[65]



30 % states that they never agree that using E-FPS

require more knowledge to access, doesn't bring

security to every taxpayer respondents and it is only

good to use when you are not due.

2. Non- users perceive that using E-FPS can brings a lot

of gains; less expenses and less use of time, they

encourage to pay on time, transactions become more

easier to access, cost-effective in saving time and

money, it is good to use in transaction for it delivers

faster way of clearing due obligations.

3. The incidence of "follow-ups attachments" is very much

a regular undertaking in the Bureau of Internal Revenue

with all the taxpayer who are filing and paying the

returns and by using E-FPS is easier to submit papers

electronically without physical contact.

4. Full automation provides an optimal collection to the

BIR.

Recommendations

The recommendations are done on the basis of the

findings considered to be significant and may be made to

attend to some disparities and differences, or in some

[66]



cases, the weaknesses discovered in the research. Based on

the stated conclusions, the researcher finds it prudent to

recommend the following:

1. The existing taxpayers and potential taxpayers should

use E-FPS just to make their transactions become easier

to access, cost-effective and saving time. The

researchers would like to recommend that E-FPS should

be mandatory to all taxpayers.

2. The data and information gathered by the BIR should be

restored easily at all time for the benefit of the

taxpayers like work back transactions or non-payment in

the past or interrupted online remittance by the bank

going to the BIR collection department.

3. BIR should provide available manpower anytime for

taxpayers who really in need of assistance either

personal or telephone calls to properly encode the

needed information.

4. BIR should monitor authorized banks because some

taxpayers are complaining that some are not accepting

BIR payments when in fact they are authorize to accept

by the agency.

[67]



5. The use of E-FPS should be mandatory to all taxpayers

maybe not at the present but we researchers, were able

to see the convenience it brings to both taxpayers and

the BIR while doing the paper.

[68]



References

Aldin, N., Brehmer, P., & Johansson, A. (2004). Business

development with electronic commerce: refinement and

repositioning. Business Proclamation Management

Journal, 10, 44-62.

Burleson (2005) Financing in the Sudan: some recent

experiments in the Central Region. The International

journal of Health. Wiley Online Library.

Bruce, 2003 Journal of Public Economics. Elsevier.

Chaffey (2009) Intergovernmental, Brennen, G., & Buchanan,

J. (1978). Tax instruments as constraints on the

disposition of public revenues.

FA Magno, RB Serafica (2001) Effects of See-Through

Interfaces on User Acceptance of Small-Screen

Information Systems. ECIS- sdaw info.

Geissler (2001) Taxation base in developing countries.

Journal of Public Economics. Elsevier.

[69]



Kim and Katherine (2004)Capital Control, Collection costs

and domestic public debt. Lacson, Pasadilla, (2006)

Mobilizing local resources in developing countries.

Wiley Online Library-.

Lanvin and Maggarqul, (2006)A Challenging E-journey Along

the Silk Road: Lessons Learned from E-governments in

China and India. Comparative E-Government, Springer

Lee, (2006) Developing public e-services for several

stakeholders: a multifaceted view of the needs for an

e-service. Proceedings of the 17th European Conference.

Diva-Portal.

Mansoorian (2006) People's Participation, Consensus-Building

and Transparency through ICTs: Issues and Challenges

for Governance in the Philippines. Kasarinlan .

Obi (2010) E-Government portals in Mexico. Thesis on I

Global.

[70]



Patterson (2001) - The role and responsibility of

government in ICT for development. ICT Policies.

Elsevier.

PDIC, TETANGCO Jr. (2007) Bangko Sentral ng

Pilipinas,Tetangco Jr., Philippine Deposits Insurance

Company.

Roberto, 2002Electronic impacts of government revenue

collection: the case of taxation.

Roso and Navarro (2006) fiscal transfers: International

lessons for developing countries. (p. The World

Development). Elsevier.

Toral, 2004Journal of International Money Finance at

Elsevier.

Other references:

Article XIV Section 12, Science and Technologies, (1986)

Uniform Electronic Transactions Act, Section 2, 1999

Emmie Manila Bulletin (2011)

[71]



http://www.bir.gov.ph/index.php/transparency/bir-collection-

statistics.html#1880

MARY ESTER CYNAND M. POLINTAN#143 Bagong Silang St. Parang Marikina City09268085159

OBJECTIVESTo build a career that can utilize my knowledge

in my area of expertise while contributing my best to

the organization I work for.

EDUCATION 2011 – 2013 4 TH Year BSBA Major in Financial

Management

Pamantasan Lungsod Ng Marikina

Brazil St. Greenhieghts Subd. Concepcion I Marikina

City

SEMINARS AND TRAININGS July 2010 “General Orientation-Culinary Art and

Livelihood”

Parang High School Tandang Sora St. Parang

Marikina City

March 2011 “Career

Workshop”

LDS Employment Resources Services

January 2013 “TESDA Training Program”

[72]

http://www.bir.gov.ph/index.php/transparency/bir-collection-statistics.html#1880

http://www.bir.gov.ph/index.php/transparency/bir-collection-statistics.html#1880



Pamantasan Lungsod NgMarikina

March 2014 Carrier Orientation and Work

Literacy

Computrade Technology Philippines Inc

October 2014 Financial Literacy

International Marketing GroupCHARACTER REFERENCES AVAILABLE UPON REQUEST

PERSONAL QUALITIES Organized, accurate, and detailed-oriented Good Listener Helpful without being asked Enjoy working with people – build strong relationships

easily. Quick Learner Flexible and Adaptable to changes

I hereby certify that all the information’s stated

above are true and correct.MEC Polintan

Danica R. Contreras#90 C.M Recto Street Parang Marikina CityPhone: 09359051140Email: [email protected]

Objectives: To experience office work utilizing my skills

and knowledge that I have learned in school

Education4th year Bachelor of Science and Business Administration

major in financial management

[73]



Pamantasan ng Lungsod ng MarikinaBrazil Street Greenhieghts Subdivision Concepcion I Marikina

City2011-2014

Parang High SchoolTandang Sora Street Parang Marikina City

2007-2011

Parang Elementary SchoolP.Patero Street Parang Marikina City

2000-2006

Seminars and TrainingJanuary 2013 “TESDA training program”

Pamantasan ng Lungsod ng Marikina

February 2014 Financial Literacy SummitUniversity of the City of manila

REFERENCE AVAILABLE UPON REQUEST

I hereby certify that all the information’s stated

above are true and correct.

DANICA CONTRERAS

Christian Neil Arcellana Espejo23 Sandalwood St. SSS Village Concepcion DosMarikina City, NCR [email protected]/[email protected]

To be trusted by all business firms, to have agreat impact in the business world and to secure a job

[74]



with a communications, public relations, or publishing firm and financial knowledge where I can use my writing, editing, and organizational skills.

PERSONAL DETAILS:Sex : MaleAge : 22 y/oBirthday : March 16, 1992Height : 5 feet 6 inchesWeight : 150 lbsNationality : FilipinoLanguages Spoken : Filipino and English

EDUCATIONAL ATTAINMENT:School : Pamantasan ng Lungsod ng MarikinaInclusive Dates : 2011 – 2014 PresentDegree: Bachelor of Science in Business Administration Major in Financial ManagementSchool : Marikina High SchoolInclusive Dates : 2009 – 2010 GraduatedSchool : SSS Village Elementary SchoolInclusive Dates : 2005 – 2006 Graduated

SKILLS:1. Basic Computer Operation (Window XP, Power Point, Window

Explorer)2. Operating Photocopy Machine3. Typing4. Can speak fluently in English

SEMINARS AND TRAINING ATTENDED:Tracking the Works of my HandsJunior Philippine Institute of AccountantsPamantasan ng Lungsod ng Marikina24th September 2011

I hereby certify that all the information’s statedabove are true and correct.

___________________________Christian Neil Arcellana

Espejo

[75]



Francis Jayson G. [email protected] Lot5 Ph4B Silangan, San Mateo, Rizal09072563059

Personal InformationAge : 19Sex : MaleBirthdate : October 5, 1994Civil Status : SingleReligion : CatholicCitizenship : FilipinoEducationTertiary Bachelor of Science in Business Management

Major in Financial Management2013-presentBachelor of Science in Accountancy2011-2013

Secondary Silangan National High School2007-2011

Elementary Silangan Elementary School2001-2007

Seminars AttendedFinancial Literacy SummitPhilippine Normal UniversityFebruary 8, 2014

TechTutor 4SM Mega Trade Hall, Ortigas CenterSeptember 25, 2012

Business TalkPamantasan ng Lungsod ng Marikina

[76]

mailto:[email protected]



September 24, 2011

-------------------------Character Reference Upon Request----------------------------

I hereby testify that the above information is all true

Francis Jayson G. Rayco Signature over printed name

ALDRED VOLANTE PACIETEErano Manalo St. Concepcion Uno Marikina CityMarikina City, NCR [email protected]#639.071.205.857

PERSONAL DETAILS:Sex : MaleAge : 20 y/oBirthday : April 6, 1994 Height : 5 feet 5inchesWeight : 120 lbsNationality : FilipinoLanguages Spoken : Filipino and English

EDUCATIONAL ATTAINMENT:School : Pamantasan ng Lungsod ng MarikinaYear : 2013 – 2014 PresentCourse : 2nd course BS Business Administration Major in FMYear: : 2011-2013Course : BS Accountancy

School : Marikina High SchoolYear : 2007 – 2011 Graduated

School : Concepcon Elementary SchoolInclusive Dates : 2001 – 2007 Graduated

SKILLS:

[77]

mailto:[email protected]



1. Basic Computer Operation (Window XP, Power Point, Window Explorer)

2. Can speak fluently in English

SEMINARS AND TRAINING ATTENDED:

On the job trainingPhil. Long Distance Telephone CompanyTech Tutor 4

I hereby certify that all the information’s statedabove are true and correct

___________________________

ALDRED VOLANTE PACIETE

[78]

EFFECT OF E-FPS TO EFFICIENCY OF COLLECTION OF REVENUE DISTRICT ORDER #45 FOR THE PERIOD 2008-2013

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Transcript of EFFECT OF E-FPS TO EFFICIENCY OF COLLECTION OF REVENUE DISTRICT ORDER #45 FOR THE PERIOD 2008-2013