Abstract
Ineffective tax assessment and systemic deficiencies have been the general perceptions that tax administrators do not remit tax collections, and this is greatly affecting tax revenue generation in Nigeria. Prior studies have attributed these anomalies to lack of efficient information technology and competent tax administrators. Consequently, this study investigated the effect of information technology on effective tax assessment in Nigeria. The study adopted survey research design. The population was 2,857 management and administrative staff of six selected multinational companies in Lagos State alongside the Federal Inland Revenue Services in Lagos offices and Lagos State Internal Revenue Service. Krejcie and Morgan’ formula was used to determine the sample size of 641 based on stratified sampling technique. The Cronbach’s alpha reliability coefficients ranged between 0.88 and 0.96. Descriptive statistics and inferential statistics used for data analysis revealed that information technology had a positive statistical significant effect on effective tax assessment Adj. R² = 0.172; F-Statistics (4, 637) = 35.46; P-value = 0.000. The study recommended that the government should provide enabling tax laws as well as simplifying the ambiguities and complexities in some of the existing tax laws to facilitate effective tax assessment in Nigeria. Key words: Digital tax, easy filing, enabling tax laws, information technology, tax assessment, tax revenue.
Highlights
Tax administration in Nigeria and globally is faced with myriad of problems affecting much desired expectations of stakeholders (Price Waterhouse Coopers, 2010)
This is preceded by the statement, „Introduction of information technology will bring about effective tax assessment in Nigeria‟ {Average Score = 4.18; SD = 0.87}; it has 81.3% of respondents that totally agree
The results show that Digital Tax Net of Taxpayers (DTNTP), Enabling Tax Laws (ETL), Information Technology Acquisition (ITA) and Financial Resource Support (FRS) jointly explained about 17.2% (Adjusted R-squared = 0.172) of changes in Effective Tax Assessment (ETA)
Summary
Tax administration in Nigeria and globally is faced with myriad of problems affecting much desired expectations of stakeholders (Price Waterhouse Coopers, 2010). The study of Leyira et al (2017) revealed that one of the problems of tax administration is multiplicity of taxes especially in developing nations of the world. Some countries that operate federal, states or regions/provinces and possibly local administrative areas still have the problems of clear cut tax jurisdiction between the tiers of government, causing multiplicity of tax collection between the federal, state and the local government. The studies argued that some countries are faced with inefficient tax administration as the tax administrators most often focus on trade and petroleum taxes, and inadvertently neglect a whole lot of areas especially the informal sectors of the economy (Edori et al, 2017; Odusola, 2016).
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