Technology-Based Innovations and Tax Compliance in Nigeria
DOI:
https://doi.org/10.64321/jcr.v3i5.05Keywords:
Technology-Based Innovation, Tax Compliance, E Payment Of Taxes, E-Processing of VAT Returns, E-Filing of PAYE Returns And E-Personal Assessment,Abstract
The inadequacies in Nigeria's traditional tax administration system have posed significant challenges to tax revenue generation, including inefficiencies, corruption, and lack of transparency, ultimately resulting in low tax revenue generation. This study was therefore conducted to examine the effect of that technology-based innovations on tax compliance cum revenue generation in Nigeria. The study was anchored on four technology-based innovation variables, namely, e payment of taxes, e-processing of VAT returns, e-filing of PAYE returns and e-personal assessment. The study adopted descriptive survey research design, while data were obtained through questionnaires administered to selected personnel of the Federal Inland Revenue Service now known as the Nigerian Revenue Service and relevant tax practitioners. Out of one hundred and fifty (150) questionnaires administered, one hundred and forty-four (144) respondents correctly completed and returned for analysis. Descriptive statistics, model summary, analysis of variance and multiple regression analysis were employed for analysis with the aid of SPSS. The findings revealed that, e-payment of taxes, e-processing of VAT returns, e-filing of PAYE returns and e-personal assessment had positive and significant relationships with tax revenue generation in Nigeria. The study concluded that technology-based innovations jointly enhance tax compliance and tax revenue generation in Nigeria. It was recommended that the Nigerian Revenue Service should strengthen digital tax platforms, improve user support and awareness, expand secure e-payment channels, automate VAT and PAYE return processing and simplify electronic personal assessment systems in order to improve voluntary compliance and revenue collection.
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