Electronic Tax Services and the Ease of Tax Compliance in Nigeria

Abstract

In order to increase tax compliance, the FIRS introduced the electronic tax services. Therefore, this study was undertaken in order to ascertain if the electronic tax services have significant impact on the ease of tax compliance. Anchoring on the positivism paradigm, the survey design was picked as the research design. The questionnaire been the instrument adopted for data collection, was distributed to 106 carefully selected from the infinite population. Using the PPMC in analysing the primary data, the study’s assessment found “e-registration”, “e-stamp duty”, “e-tax payment”, “e-receipt”, “e-filing”, and “e-TCC” all have significant impact of the ease of tax compliance with 0.000 value of significance across board. The study further ascertained that all the six e-tax services have positive correlation with the ease of doing business. Finally, the correlation result implies strong correlation between e-registration, e-filing, e-TCC and ease of tax compliance with the value of 0.763, 0.678, and 0.603 respectively while e-stamp duty, e-tax payment and e-receipt and ease of tax compliance implies moderate relationship with the value of 0.580, 0.582 and 0.603 respectively. Recommendations made base on the result are; proactive steps by FIRS to create awareness and increase knowledge on the taxpayers’ registration through the e-tax services using various enlightenment and tax education measures; granting of certain incentives for users of the e-tax services; the issue of system downtime should be addressed by putting in place measures that can address the issue; filing of returns using e-filing should be made in such a way that corrections and modifications can be done after filing or submission; e-receipts should be sent to the taxpayer’s email and the e-TCC has made it easier for taxpayers hence should be upheld. The conclusion made by the study is that there is the presence of impact hence, e-tax services have significant impact on ease of tax c