E-TAX ADMINISTRATION MECHANISMS AND TAX REVENUE IN NIGERIA

Abstract

This study examined the e-tax administration mechanisms and tax revenue in Nigeria. The main objective was to investigate the relationship between e-tax administration mechanisms and tax revenue in Nigeria.   The study has ten specific objectives, ten research questions and ten hypotheses, tax rated moderated the study. The study adopted both the correlational and ex-post facto designs. The correlational research aims at determining the relationship between variables. The correlational survey design was adopted because the study intended to determine the relationship between electronic tax administration mechanism and tax revenue in Nigeria, While the ex-post facto design investigates possible cause and effect of the relationships, by observing an existing state of affairs and searching back-to-back through the available data for possible or plausible causal factors since data are collected after the event under investigation has taken place, the research design is called an ex-post facto design. The population for the study was drawn from the 36 states (Federal Inland Revenue Service). The study was macro study because it used a secondary data from Federal Inland Revenue Service obtained from its website tax statistics. The hypotheses were tested using stationarity test, co-integration and Granger casuality test. The result shows that there is a direct relationship between e-tax administration mechanism and tax revenue in Nigeria. The study concluded that if electronic tax system is properly administered in Nigeria, it can undoubtedly be a lasting solution to the irregular tax system that is in practice in Nigeria has revealed in this study that here is significant relationship between electronic tax registration and company income tax revenue in Nigeria. There is also a significant relationship between electronic filling of tax returns and company income tax revenue in Nigeria and significant relationship between electronic tax payment and company income tax revenue in Nigeria. The study recommended among others that Federal Inland revenue services should continue electronic taxpayer’s registration in order to benefit high rate of company income tax compliance as well as its revenue, the federal government through the Federal Inland Revenue services should continue to sensitize companies (taxpayers) on the nitty-gritty of electronic filing of tax returns so as to further maximize the company income tax revenue in Nigeria. Also, FIRS should continue to sensitize taxpayers on electronic tax payment. And all tax clearance Certificates should be issued electronically to ensure compliance, save time and cost for taxpayers and increase company income tax revenue in Nigeria.