BRIEFLY DISCUSS THE ENVISAGED BENEFITS BY THE
GOVERNMENT OF ZIMBABWE FOR INTRODUCING
FISCALISED CASH REGISTER FOR TAXPAYERS WHO ARE
REGISTERED FOR VALUE ADDED TAX (VAT) PURPOSES IN
LIGHT OF CHANGES IN TECHNOLOGY AND ACCOUNTING
INFORMATION SYSTEMS IN GENERAL [10MARKS]
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A fiscalised cash tax register is an electronic
cash register system with a fiscal memory,
which is special Read Only Memory (ROM)
built into the cash register to store tax
information for up to three years at the point
of sale.
Value Added Tax (VAT) is that tax which is
charged on the purchase price by the ZIMRA
on behalf of the government.(In Zimbabwe
15%)
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a.
b.
Fiscalised cash register has the following
features:
A screen on which the customer can see
simultaneously the input being made by the
till operator
printing sales slip for customers which can
be retained for a period not less than three
years
c. fiscal memory of total daily sales
d. An emergency back up power supply
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It must incorporate a back up audit facility
and should be capable of being upgraded.
a.
Fiscalised cash tax registers have special
features that cannot be tempered with. Each
electronic tax register is identified by a single
unique number assigned by the government
and can record sales at the point of sale and
store tax information for up to three years. They
are thus placed to record VAT payable every
period; hence they encourage transparency and
fairness among taxpayers.
b. The implementation of this new system will
curb or reduce malpractices, manipulation
and expose tax avoidance and invasions. In
other words, this system is adopted to plug
leakages on VAT.
c. Fiscalised register are set to improve the
collection of VAT by the Zimbabwe Revenue
Authority (ZIMRA). This will go a long way in
developing a functional and developmental
country that is accountable.
d. Fiscal receipts can easily be identifiable for
inspection purposes and daily fiscal summary
reports. This will help to minimize the
number of tax defaulters in the retail sector
and the new system will be able to close the
net on defaulters.
e. Minister Biti stressed that 20% would be
realized from the country’s top 300 VAT
contribution companies, and VAT collection
would improve by 40% when the system is
fully implemented across all sectors of the
economy.
f. Furthermore the system can store
information up to 3 years whereby it shortens
audit period by the taxman and also less
paper work in the offices. It can also improve
public procurement system.
g. Ensures easy access of online tax information
and quick response to deviation or
malpractices over the machine.
h. Minimize tax disputes and simplify tax refunds.
i. Fiscalised cash tax register implemented by the
government of Zimbabwe is one of the
indispensible tools of Accounting Information
System that enables the smooth flow of
accounting data in the department of ZIMRA
and a county as a whole. It is therefore a positive
step in keeping abreast with technological
changes and also in line with the accounting
information system as a whole.
However, the implementation of this system has
some set becks that are associated with it.
These include:
a. There are a lot of software interfacing that is
required and most companies have to comply
with that. The hardware of this system might be
incompatible with some of the retail operator
system. More importantly, the exorbitant prices
that are being charged of close to US$3000
make this system unaffordable by other firms.
b. Installing new systems in companies
becomes a disadvantage to the workers
within the organizations hence affecting their
morale. This is due to the fact that most
people resist change and do not want to learn
new things. This may also be so due to the
fact that this requires computer literate
workers hence a threat to their jobs.
c. There are only two indigenous firms (Axis
Solution and First Computers) that have
approved and given tenders by the
government to supply this system. These
firms are failing to cope up with demand from
firms and this is slowing the progress of the
full implementation and therefore is dragging
the benefits of this system to be realized.
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DISCUSS ANY TWO OF THE FOLLOWING
FOUR BASIC TYPES OF SYSTEMS.
CLOSED SYSTEM
is a system that does not interact with the
environment
There are no interfaces.
Has no effects on the outside of its
boundaries and the environment has no
effects on the process within the system. For
example, a watch.
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It is a system which maintains itself on a
limited amount of resources that are firmly
established in that particular system hence
being difficult to change it.
Such a system is a theoretical concept rather
than being a practical concept.
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EXAMPLE
Certain departments within an organisation
can be set up as closed system.
A research and development (R&D)
department within a computer organisation
may be set up as a closed system with no
interaction outside the division.
The purpose is to protect trade secretes and
invention that are being produced inside.
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ADVANTAGES
There are no disturbances in the system.
It is highly effective and efficient.
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LIMITATIONS
Can hamper growth since the flow of
information stays within the system.
Has no chance to interact with or build on
knowledge from the outer world.
It does not adapt to technological changes.
It practically does not exist because it lacks
the need for interaction.
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RELATIVELY CLOSED SYSTEM
It reacts with its environment in a known and
controlled way.
The interactions consist of system inputs (if
they flow from the environment to the
system) and outputs (which are interactions
flowing in the opposite direction)
The system contains interfaces with the
environment and controls the effects of the
environment on its process.
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RELATIVELY CLOSED SYSTEM
It interacts with its environment in a
restricted way that does not eliminate but
limits its susceptibility to the environment.
For example, labour negotiations can limit
the effects of strike.
It is semi permeable.
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ADVANTAGES
Able to meet user needs as they are able to
take inputs for development purposes.
It is flexible – adapts to technological
changes.
It allows for a reasonable level of sharing and
exchange of information.
Minimises the impact of disturbances as
there are control measures.
DISADVANTAGES
 It is not reliable – for it is prone to
disturbances from the environment
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Is one in which the systems interaction with
the environment is not controlled.
Has many interfaces with its environment
,that is ,system that interacts freely with its
environment, taking input and returning
output.
Contains subsystems which help in
converting input into output.
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It permits interactions across its boundary , it
receives inputs from and delivers outputs to
the outside.
System designers anticipate the things that
can go wrong in the environment and create
processes and interfaces to control them.
For example, media and internet.
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Have flexible boundaries since it interacts
with the environment.
Promote effective problem solving.
Subsystems help in resolving conflicts as well
as allocating resources.
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The system has disturbances of uncontrolled
inputs that affect the processed resources
within the system.
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A portion of the system is retained as an
input to the system.
For example, in accounting system ,revenue
output by other goods can be used as capital
in costing and variances can be output that
can be used in decision making.
Designed to provide feedback
Uses interfaces to permeate information
bottom up and top down.
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Uses the function of a prescribed relationship
between the output and reference input to
control the process of resources in that
system.
The difference between the output of the
process under control and the reference input
is amplified and used to control the process
so that the difference is continuously reduced
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Can be used for decision making.
Provide the feedback which help the system
to obtain its goals and enhance employee
motivation.
Provide management with meaningful
information on how effective its planning
effort was.
The effect of unwanted disturbances can be
effectively reduced.
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The time the manager may get the
information , the damage might already have
been done thus making feedback irrelevant
It is expensive to set up and the cost of
feedback is first manifested in the increased
number of components and the complexity
of the system.