Effect of E-Taxation on Voluntary Tax Compliance in Nigeria

Abstract

This study has examined the effect of electronic-taxation on tax compliance in Nigeria. The objectives of the study: examine the effect of e-taxation on voluntary tax compliance, evaluate the major challenges facing e-taxation for voluntary tax compliance; and Proffer policy strategy to overcome the challenges. The study adopted survey method where primary and secondary data were collected and regression analysis was conducted, the residents of FCT and Nasarawa State who proxy the population of tax payers in Nigeria form the respondents’ base. A sample of approximately 400 respondents was drawn from the total population of 4,190, using Yamame (1964) from 2015 to 2023. Findings of this study revealed that electronic taxation has a positive effect on tax compliance in Nigeria. It was therefore, recommended that Federal Inland Revenue Service (FIRS) should introduce inventive packages to encourage voluntary tax compliance FIRS should undertake massive education campaign on e-taxation, to increase awareness of the new tax regime and the application of the package, to generate public interest in the system and its friendly applicability and FIRS should impose stiffer penalties, including asset forfeiture and denial of licenses or permits, imposed on tax defaulters, to deter tax evasion, avoidance or payment delayed.