Technology and Tax Administration in Oyo State Internal Revenue Service
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Date
2024-12
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Lead City University, Ibadan
Abstract
This study examines the impact of technology on tax administration effectiveness within the Oyo State Internal Revenue Service (OIRS). The study addresses the challenges posed by traditional manual tax systems, which have historically led to inefficiencies, tax evasion, and revenue losses. Employing a mixed-methods approach, the research integrates both quantitative and qualitative methodologies. Data were collected through structured questionnaires distributed to key stakeholders, including taxpayers and tax officials, supplemented by in-depth interviews to capture nuanced perspectives. The study utilized a descriptive research design, targeting a stratified sample of taxpayers and administrative staff in Ibadan, Oyo State, ensuring representation across various demographic groups. Data analysis involved statistical tools such as regression analysis to examine the relationships between technological applications—like e-tax filing, online tax payments, and electronic tax verification—and tax administration outcomes, including compliance rates, revenue generation, and administrative efficiency. Findings revealed that technological interventions significantly improve tax compliance and administrative transparency while reducing operational inefficiencies and opportunities for corruption. Specifically, the e-tax payment
system was identified as a critical driver for timely revenue collection, while online tax registration enhanced taxpayer engagement and ease of compliance. However, the study identified several limitations. First, the scope was geographically limited to Ibadan, which may affect the generalizability of the findings across other regions of Oyo State or Nigeria. Second, challenges in accessing comprehensive data due to privacy concerns and bureaucratic barriers limited the robustness of some analyses. Lastly, the reliance on self reported data from respondents introduced potential biases, including social desirability bias. The research concludes that adopting robust technology frameworks can transform tax administration in Oyo State, enhancing revenue mobilization and taxpayer satisfaction. It recommends expanded investment in digital infrastructure, stakeholder training, and policy reforms to sustain these gains. Future studies should explore comparative analyses across states and incorporate longitudinal data to assess the long-term impact of technology on tax systems.
Keywords: Tax Administration, Technology Adoption, E-Tax System, Revenue Generation, Compliance Efficiency, Oyo State
Word count: 307
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Keywords
Tax Administration, Technology Adoption, E-Tax System, Revenue Generation, Compliance Efficiency, Oyo State
Citation
Kate Turabia