Enhanced Tax Revenue Assessment and Collection System (ETRACS)

ENHANCED TAX REVENUE ASSESSMENT AND COLLECTION SYSTEM (ETRACS) QUICK REFERENCE GUIDE FOR THE GUIDANCE OF THE LGUs This Quick Reference Guide addresses the following: What is ETRACS? TcCSIa Why should an LGU adopt ETRACS? What are the benefits? What are the ETRACS modules? What are the features of ETRACS? What is ETRACS? ETRACS is an integrated computerized system for tax and revenue collection for local government units (LGU). It is an effective tool for good governance. Automating manual processes provides better use of resources and improves government-taxpayer relations through improved delivery of services. ETRACS seeks to provide a standardized revenue system and a sustainable business model that caters to even the smallest local government units. It is an integrated software designed for LGUs. It was developed to meet the following objectives: to improve efficiency of tax and revenue collection in the LGUs; to expedite processing of transactions and provide better service to taxpayers; to provide a consistent and transparent method of calculating taxes based on local policies; to provide tight and measurable controls to eliminate fraud and corruption; to improve the image of the LGU by effectively applying new technologies. ETRACS is a web-based, GIS ready, LGU taxation application design for Provincial, City and Municipal LGUs. It connects the province and its component cities/municipalities via the Internet. Initiated through a grant from AusAID, ETRACS is successfully being used by several LGUs today. ETRACS for a medium size LGU ETRACS Benefits Streamlines LGU operations for a substantial reduction in the steps required for collection and frees up resources for field assessment and tax mapping. HcDaAI Generates fast and accurate reports. Increases taxpayers satisfaction since processing time for billing and collecting taxes are substantially reduced. Without ETRACS With ETRACS Assessment 60 or more minutes 10 minutes for business & 25 minutes for RPT Billing 30 to 60 minutes 5 minutes Payment 30 to 60 minutes 3 to 5 minutes Increases local revenues as a computerized system increases the local revenues even without increasing the tax rates. This is made possible by: greater transparency and plugs in systems leakages, easy production of tax bills, monitoring of tax delinquencies, easy preparation of demand letters and tax mapping. What are the ETRACS modules? Real Property Tax Module fully automated assessment of land, buildings, machinery, plants and trees, fully integrated with the collection system Business Permit and Licensing Module automated assessment of new/renew 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 taxpayer accounts and reconciliation of accounts What are the features of ETRACS? Software Implementation Software is free. Invest only on hardware and trainings with an option for maintenance and support services from the developer. Implementation Flexibility ETRACS can run on any operating system that supports Java including Windows, Linux, Mac OS or Sun servers. SEIaHT Support Remote access, telephone, chat and forums support services are provided. Sustainability Training for users, administrators and developers may be provided. Extensibility Modules or plug-ins can be purchased or developed and installed to extend the software functionality. Scalability ETRACS was designed using J2EE technologies to provide fault-tolerant, multi-tier software. As the number of users grow, scalability can be achieved by adding servers. Flexibility/Innovative Highly customizable. ETRACS is probably the only solution in the local market today that makes use of a RULE ENGINE and a flexible formula for calculating taxes, based on LGU policies and ordinances. Connectivity Supports LAN (Local Area Network) or WAN (Wide Area Network) connection. Accessible through the internet and enables a barangay to collect taxes. Dynamic Report Deployment Rule Engine Minimum LGU Hardware Requirements Application/Database Server Dual Core or Higher Server Grade 2GB minimum memory Desktop Computers for Client Dual Core or higher 1GB minimum memory 1 for Collection, 1 for Business Assessment, 1 for Issuance of Permit and 2 for RPT Assessment Printer 1 Dot Matrix Printer for printing receipts 1 Laser/Deskjet Printer for printing reports, Tax Declarations, etc. LAN Connecting the following: MTO, MMO, BTLD and MAO For WAN (optional) DSL Connection Recommended LGU Hardware Requirements Application Server/Database Server Dual Core or Higher Server Grade 4GB minimum memory Desktop Computers for Client Dual Core or higher 1GB minimum memory TECcHA 3 for Collection, 3 for Business Assessment, 2 for Issuance of Permit, 4 for RPT Assessment Printer 3 Dot Matrix Printer for printing receipts 2 Laser/Deskjet Printer for printing reports, Tax Declarations, etc. LAN Connecting the following: MTO, MMO, BTLD and MAO For WAN (optional) DSL Connection Costing Cost of Implementation/roll out to Municipality 1,000,000 Php for Hardware 500,000 Php for trainings and maintenance Cost of Implementation/roll out to City 2,000,000 Php for Hardware 750,000 Php for trainings and maintenance Cost of Implementation/roll out to Province with 2 Pilot Municipalities 4,000,000 Php for Hardware (1 Province and 2 Municipalities) 1,000,000 Php for trainings and maintenance This quick reference guide aims to give the reader an overall idea in adopting ETRACS, from hardware specifications needed to cost estimates. This guide, however, does not replace the ETRACS Manual which provides a step-by-step procedural guidance for all ETRACS-related tasks. The Innovation Support Fund or ISF is a A$2.6 million grant fund facility from the Australian Government through the Australian Agency for International Development (AusAID) with technical assistance from Land Equity International, Inc. (LEI). Part of the Land Administration and Management Project Phase 2 (LAMP2), the ISF assisted local government unit (LGU) led Land Administration and Management (LAM) projects in conjunction with local LAM sector agencies. In partnership with the League of Cities (LCP) and the Municipalities (LMP) of the Philippines, the ISF enabled selected LGUs and other LAM sector participants to improve the delivery of their LAM services through technology transfer and by making the innovations, technologies and new processes developed under the LAMP2 available to them. LAMP2 is a development cooperation project of the Department of Environment and Natural Resources (DENR) with the Department of Finance (DOF) through the Bureau of Local Government Finance (BLGF), the Land Registration Authority (LRA), the World Bank and AusAID as project partners. aHcACI For more information, please contact LAMP2 Project Coordinating Office (LAMP2-PCO) at: Phone: 925-2328; Fax: 928-1195 Email Address: [emailprotected]