DIGITALISATION AND PROSPECTS OF TAX COMPLIANCE IN NIGERIA

Kato Simon Nwanmaghyi () and Oredein Oluwaseun ()
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Kato Simon Nwanmaghyi: Department of Taxation and Fiscal Policy, Postal: ANAN University, Kwall, Plateau State,, https://jted.citn.org/
Oredein Oluwaseun: Department of Accounting and Information Technology, Postal: ANAN University, Kwall, Plateau State,, https://jted.citn.org/

Journal of Taxation and Economic Development, 2023, vol. 22, issue 2, 51-69

Abstract: This study aimed to investigate the relationship between Digitalization and Tax Compliance in Nigeria. A quantitative research design was adopted, and data were collected from 83 participants. The findings from the logit regression revealed a significant positive effect of digitalization on tax compliance, suggesting that businesses or individuals utilizing digital technologies in tax-related activities were more likely to exhibit higher levels of compliance. Regression analysis indicated a moderate effect, with digital technologies accounting for a significant proportion of the variance in tax compliance. These findings highlight the potential of digitalization in enhancing tax compliance efforts by streamlining processes, improving record-keeping accuracy, and facilitating online tax filing. However, it is important to consider that digital technology is just one factor influencing tax compliance, and further research is needed to explore additional contextual and individual determinants. The study recommends promoting awareness and education, fostering collaboration between tax authorities and Digital technology developers, AI developers, developing digital user-friendly solutions, providing technical support and training, regularly updating and adapting digital systems, emphasizing data security and privacy, and fostering a supportive regulatory environment. By implementing these recommendations, tax authorities and policymakers can harness the potential of digitalization to improve tax compliance outcomes.

Keywords: Digitalization; Artificial Intelligence; Tax Compliance; Tax Evasion; Tax Professionals (search for similar items in EconPapers)
JEL-codes: E62 M15 (search for similar items in EconPapers)
Date: 2023
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