Tax digitalisation and tax revenue generation system in Nigeria
Keywords:
Electronic Audit, Electronic Tax Filing, Online Payment System, Electronic Reporting, Tax Revenue Generation, DigitalisationAbstract
One of the various avenues the government can use to generate the revenue needed for the provision of infrastructures, security and welfare to her citizenry is tax revenue generation system. Records has shown that tax revenue generation by government especially in developing countries like Nigeria is fraught with lots of irregularities which has resulted in low level revenue generation suggestibly due to lack of tax collection digitalisattion. Therefore, the focus of this study is to investigate the effect of tax digitalisation dimensions on revenue generation of Federal Inland Revenue Service (FIRS) headquarters, Abuja, Nigeria. A survey research design was used for the investigation. Ten thousand three hundred and forty-two managers and employees of the Federal Inland Revenue Service (FIRS) in Abuja, Nigeria, made up the research population. In order to get the appropriate sample size, this research used Cochran's formula (1977). Accordingly, seven hundred and thirty seven was the sample size. The sample was selected using the simple random sampling approach. Validity and reliability tests were conducted on the modified questionnaire. The reliability coefficients test showed Cronbach's alpha values between 0.802 to 0.907. Using multiple regression analysis, the data were analysed to determine the direction and relationship of the dependent and the independent variables. A favourable and statistically significant relationship between tax digitalisation characteristics and revenue generation was found in the results of the multiple regression study (Adj. R2 = 0.795, (F (4, 598) = 583.786, p<0.05)] with online payment system as the best predictor of revenue generation. The study concluded that Tax digitalization affect revenue generation and will help to eliminate tax leakages. Management of FIRS should ensure accuracy of account book, relevant tax authority approval, encourage use of apple pay for remittance, should create electronic reports for taxpayers to improve revenue generation system.
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