Tax Amount Segmentation in Financial Transaction Systems
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Solution Overview
Problem
Current systems for paying consumption taxes often result in tax amounts remaining unpaid due to businesses declaring lower profits, leading to indirect and inefficient tax payment processes, particularly when consumers pay compensation for taxable assets without clear mechanisms for direct tax payment to the National Treasury.
Innovation Solution
An information management apparatus that allows users to directly pay consumption taxes by calculating and separating tax amounts from transaction records, enabling direct tax payments to the National Treasury through a network-connected system involving ATMs, financial institution terminals, and personal terminals, using a receiving unit, computing unit, and storage unit to manage and record tax-inclusive transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If businesses calculate and pay consumption tax based on declared profits, then the tax payment process is simple for businesses, but tax amounts may remain unpaid due to profit underdeclaration
Solution Approach 1:
The patent introduces a financial institution as an intermediary that automatically withholds and transfers consumption tax from the business's account to the National Treasury. This mediator ensures tax is paid based on actual transactions rather than declared profits, resolving the reliability issue while maintaining operational simplicity for businesses.
Solution Approach 2:
The system implements automatic feedback loops where transaction data is continuously monitored, tax amounts are calculated based on actual sales, and payments are automatically executed. This closed-loop feedback mechanism ensures tax payments reflect true economic activity, preventing underpayment while keeping the process automated and simple.
2Ease of operation
If consumers pay tax-inclusive amounts to businesses, then the transaction process is straightforward for consumers, but consumers have no direct mechanism to ensure tax reaches the Treasury
Solution Approach 1:
The financial institution acts as an intermediary that provides consumers with visibility into tax payment status. Through the system, consumers can track whether their paid tax has been successfully transferred to the Treasury, resolving the information asymmetry while keeping the original transaction process simple.
Solution Approach 2:
The system provides feedback mechanisms to consumers, allowing them to verify tax payment status. This feedback loop ensures consumers have visibility into whether their tax payments reached the Treasury, addressing the information loss issue without complicating the consumer transaction experience.
3Adaptability or versatility
If tax amounts are calculated and paid manually by businesses, then flexibility in payment timing is maintained, but tax evasion and unpaid amounts increase
Solution Approach 1:
The system performs preliminary actions by automatically calculating and withholding tax at the time of transaction, before the business can potentially evade payment. The tax is transferred to the Treasury in advance based on actual transactions, eliminating the risk of non-payment while maintaining adaptability through automated scheduling.
Solution Approach 2:
The system ensures continuous tax collection by automatically withholding and transferring tax amounts continuously as transactions occur. This continuous action eliminates gaps where tax evasion could occur, while the automated nature maintains flexibility in payment timing based on actual cash flow patterns.
4Measurement precision
If the system separates transaction records into actual amount and tax amount, then tax payment accuracy is improved, but the system complexity increases
Solution Approach 1:
The system segments transaction records into distinct components: actual amount and tax amount. This segmentation improves measurement precision by clearly separating taxable portions while the automated segmentation process manages the complexity through systematic data organization rather than manual intervention.
Solution Approach 2:
The patent replaces manual mechanical bookkeeping systems with automated electronic information processing. The computing unit automatically separates and calculates tax amounts, substituting complex manual procedures with streamlined electronic operations that improve accuracy while reducing operational complexity.
Data Source
AI summary
An account information management apparatus includes an input receiving unit for receiving a net price, a tax-inclusive price, and an amount to be actually transferred to a transaction party, out of a tax-inclusive transaction amount, a computing unit for calculating the tax amount included in the transaction amount using the information received by the input receiving unit, and generating actual amount account information in which a transaction of the amount to be actually transferred to a transaction party is recorded and tax account information in which a transaction record of only the tax amount is recorded separately from the transaction record of the amount to be actually transferred to the transaction party, and an account information storage unit for storing therein the actual amount account information and the tax account information in association with each other for each transaction.