ELECTRONIC STAMP DUTY PAYMENT SYSTEM
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
ELECTRONIC STAMP DUTY PAYMENT SYSTEM
Chapter One: Introduction (1.0)
As digital technology advances, postal systems across the country are becoming increasingly irrelevant. What marketing strategies can prevent Nigeria’s postal service from closing?
The organisation aims to revitalise stamping (N50-stamping) on receipts in accordance with the Stamp Duty Act 2004, as revised in 2010. According to this law, receipts in Nigeria must be validated using postal stamps.
Legal papers (e.g. lease agreements, deposit agreements, employment contracts, promotion letters, purchase order agreements) require a duty stamp to be legally binding.
Stamp duty is a Non-Tax Revenue (NTR) imposed by Acts of Parliament and administered by several government entities. This is not a tax on transactions, but rather a tax on commercial and legal documents that record and impact specific transactions.
Stamp duty is a levy or charge on documents to ensure their legitimacy in court. Value documents typically reflect the interests of multiple parties. Stamp duty on specific instruments is either ad valorem (at a percentage rate) or fixed.
If a transaction is made orally or based only on the parties’ actions, no duty is required as there is no paper to stamp. The Federal Government charges and collects duties on instruments between companies and individuals, whereas State Governments charge and collect duties on those between individuals.
However, the rate of duties must be agreed upon with the federal government.
Stamp Duty applies to a variety of instruments and documents, including agreements, memoranda of agreement, hire purchase agreements, solemn declarations, affidavits, mortgaged deeds, debentures, lease agreements, letters of credit, promissory notes, and divorce deeds. Again, not all documents are subject to duty.
Exempt instruments include cheques, stock and share transfer documents, bank documents for savings, and transfers between affiliated entities.
2
Electronic transactions have made it difficult to collect stamp duty using adhesive paper stamps because they are no longer physically present. To adequately monitor these transactions, an electronic means must be employed.
However, the earlier approach of physical embossing was hostile and involved continual moving. There were long lines, congestion, and service delays.
The embossing equipment was used by other government ministries, and the stamp was pressed at the Ministry of Finance, Planning, and Economic Development.
The assessment procedure was manual and conducted by Federal Inland Revenue Services, making it difficult for clients to grasp the rationale for the assessment. The consumer had to pay fees in a single bank and return the next day.
The challenge was storing and retrieving stamp records, which was prone to paper-related fraud. Additionally, the procedure was cumbersome and unreliable, leading to poor service delivery and staff overload. This puts some clients at risk of possessing instruments that are not properly stamped.
This effort is thus aimed at resolving issues relevant to this situation. The goal is to automate the stamp duty application and payment process. This is merely a change in the procedure of evaluating and paying stamp duty based on the required documents (instrument).
The new approach allows for amendments, such as selecting the erroneous document during declaration on the portal. It will help streamline operations and increase voluntary compliance.
Data is captured in a secure database for easy access by clients at any time. Users can conduct transactions from wherever with internet access, including their homes and offices.
1.1 Statement of Problem
One major issue with stamp duty collection is counterfeiting.
2. Poor revenue generation.
3
3. Inadequate tax education.
4. Revenue leaks resulting from stamp sales
1.2 Objectives of the Study
The goal is to create a system capable of eliminating counterfeit stamps.
2. Reduce compliance costs while also improving tax compliance.
3. Enable easy detection of defaulters, as required by inefficient manual systems.
1.3 Significance of the Study
Implementing this study will greatly benefit Nigerian governments, FIRS, taxpayers, policymakers, researchers, and academics in the following ways:
1 Checking for fraud: The stamp certificate is generated automatically by e-Stamp and assigned a barcode that is registered in our database. Fake/counterfeit certificates will not be stored in our database or validated in our system.
2 The technology decreases administrative workload and boosts employee productivity:
Electronic stamp certificates eliminate the need for manual embossing. This effectively eliminates the use of stamps to emboss instruments.
3 Online Application for Duplicate Stamp Certificates If the little stamp is wrinkled or destroyed, similar to physical embossment, the system can provide a duplicate certificate.
4 It boosts the economy of both the implementing organisation and the country. Gaining expertise and simplifying the procedure can lead to more stamp revenue for governments.
5 It saves time. Reduced contact hours at the FIRS office, allowing taxpayers to focus on more valuable tasks.
6 Stamp duty payments can now be made through the client’s preferred FIRS partner bank.
Need help with a related project topic or New topic? Send Us Your Topic