E-Taxation Adoption and Revenue Generation in Nigeria

Abstract

The study examined the effect of E-taxation adoption on revenue generation in Nigeria. Specifically, the study assessed the effect of E-taxation on Company Income Tax (CIT) and Value Added Tax (VAT). Expo facto research design was adopted and data were sourced from Federal Inland Revenue Service. The study period covered six (6) years and three (3) quarters, spanning from the first quarter of 2012 to the second quarter of 2018. The study was on quarterly bases and the period for pre-E-taxation covered thirteen (13) quarters, spanning from the first quarter of 2012 to the first of 2015 while the period for post E-taxation covered thirteen (13) quarters, spanning from the second quarter of 2015 to the second quarter of 2018. The analysis that was carried out through paired sampled t-test revealed a positive insignificant difference between pre and post company income tax revenue with t-statistics and p-value reported to be 0.833 and 0.421 respectively; and that there was a positive insignificant difference between pre and post value added tax revenue with t-statistics and p-value of 0.520 and 0.612 respectively. It was concluded that E-taxation has not significantly spur revenue generation in Nigeria. Thus, the study recommended that federal government through Federal Inland Revenue Services should work out modalities on how to sensitize companies on the nitty-gritty of E-tax payment so as to maximize the expected positive impact of the initiative and that Federal Inland Revenue Services must ensure that the website is of good quality and accessible to all and sundry.

Keywords: E-Taxation, Revenue Generation, Company Income Tax (CIT) Value Added Tax (VAT)