E-Tax Compliance in Nigeria: Implications for Company Income Tax and Petroleum Profit tax

Abstract

This work examines the effect of e-tax compliance in Nigeria: Implication on Company Income Tax and Petroleum Profit Tax. As Nigeria's economy continues to evolve in the digital age, the taxation landscape has seen significant changes with the advent of e-tax compliance. This work therefore aims to explore the implications of e-tax compliance on two key revenue streams for the Nigerian government: Company Income Tax (CIT) and Petroleum Profit Tax (PPT). The study reveals that the amount of capital gain tax revenue before (before the arrival of e-taxation) and after (after the advent of e-taxation) shows a positive, negligible difference and that the Petroleum Profit Tax also has a positive negligible difference between pre- (before the advent of e-taxation) and post- (after the advent of e-taxation). The study concluded that the transition to electronic tax compliance in Nigeria has been driven by the need for efficiency, transparency, and improved revenue collection. It has not only streamlined the tax assessment and payment process but has also increased the government's ability to monitor and collect taxes from this lucrative industry. Federal Inland Revenue Services should develop measures to ensure that defaulters are brought to book and dealt with in accordance with the laws, in addition to establishing a collaborative pattern between the government, Federal Inland Revenue Services, and Nigerian taxpayers to enable them to observe any difficulty felt by the taxpayers or the shortcomings besetting the effectiveness of the system.