Self-Assessment Scheme and Revenue Generation in Nigeria

Abstract

This study examines self assessment scheme and revenue generation in Nigeria. To achieve this objective, data was collected from primary and secondary sources. The secondary sources were from scholarly books and journals while the primary source involved a well structured questionnaire of three sections of thirty-eight items with an average reliability of 0.71. The data collected from the questionnaire were analyzed using relevant statistical models. The analysis reveals that self assessment compliance rate significantly affects revenue generation in Nigeria. The correction coefficient is high indicating that strong correlations exist between self assessment compliance Rate and Revenue generation. Therefore, the paper concludes that self assessment scheme influences revenue generation. The paper recommends amongst others that the FIRS should also be efficient in their internal Processes, particularly in processing tax refund and tax correspondence. Insufficient access channel for tax payers to obtain tax guidance and advice would not help the FIRS to achieve greater voluntary compliance. Moreover, the situations would deteriorate further if the FIRS is not responsive to complexities and problems faced by taxpayers. As tax officers are no longer burdened with tax assessment workloads, therefore, it is reasonable for taxpayers to expect and demand better tax services and guidance on tax policy matters from the FIRS.

Keywords: Revenue Generation, Self Assessment, Tax, Nigeria