Digitalisation of Tax System and Revenue Generation in Nigeria
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Date
2024-11
Journal Title
Journal ISSN
Volume Title
Publisher
LCU
Abstract
The problem of tax evasion and other issues limiting maximum tax revenue collection in
Nigeria is such that contemporary tax practice should encourage tax administrators to embrace
Information and Communication Technology (ICT) to revolutionize tax processes and alleviate
some of the difficulties associated with manual tax processing in Nigeria. This study examined
tax digitalization and the problem of revenue collection in Nigeria. A descriptive research
design was employed, and a sample size of 352 tax administrators was determined using the
Taro Yamane formula (1967) from a population of two thousand nine hundred and thirty-two
(N=2,932) operating in southwest Nigeria. Data were collected by means of an online
questionnaire with a reliability test of 0.7747 > 0.70. Four hypotheses were tested using Chi
square and regression analysis with the aid of an Excel sheet and SPSS. The findings revealed
that Tax Digitalization has a significant relationship with Tax Revenue and also showed that
Tax Digitalization has a significant effect on Tax Evasion. The study concluded that if adequate
e-tax policies are implemented, and qualified and competent IT personnel are equipped, tax
digitalization can curtail Tax Evasion and reduce Tax Risk to the minimum in Nigeria.
According to the study, tax collectors of all quantities should invest more in ICT and embrace
ICT in tax collection because it boosts Nigeria's tax revenue drive. This should be accomplished
by automating the entire tax filing process, from filing to receiving a tax clearance certificate,
to reduce tax evasion and increase tax revenue generation.
Description
Keywords
Tax Administrators, Tax Collection, Tax Compliance, Tax Evasion, Tax Risk.