Effect of E-Tax Payment on Revenue Generation in Nigeria

Abstract

The study examined the effect of e-tax payment on revenue generation in Nigeria. 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 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 was carried out using Trend analysis, descriptive statistics of mean and standard deviation, paired sampled t-test. The findings revealed that there was insignificant positive difference between pre and post value added tax revenue with t-statistics and pvalue of 0.520 and 0.612 respectively. This connotes that e-tax payment has an insignificant positive effect on value added tax revenue in Nigeria. Similarly, it was discovered that there was 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. That is, e-tax payment has negative insignificant impact on Value Added Tax (VAT) revenue. Lastly, the findings revealed that there is a positive insignificant difference between pre and post capital Gain tax revenue with t-statistics and p-value of 1.218 and 0.247 reported to be respectively. That is, that e-tax payment has a positive insignificant effect on company income tax revenue in Nigeria. It was therefore concluded that E-tax payment has not contributed to capital gain tax, value added tax and company income tax generation in Nigeria.

Electronic Corporate Tax, Aggregate Federally Collected Tax Revenues and Economic Growth: A Multivariate VAR Approach

“…The choice of this timeframe is premised on the fact that it encapsulates the commencement of electronic-tax payment system by the FIRS in conjunction with the Nigeria Inter-Bank Settlement System (NIBSS) ( [32,39]). Our empirical model is adapted from studies of Kwaji and Ishaya [26] and Olusegun [40] Noteworthy is the fact that six (6) observations are sufficient for quarterly time-series data when there is no randomness in the data series (Hyndman &Andrey [18]).…”

“…Even with the issuance of this guideline, they were some unexpected deviances in compliance probably because of the technicality of the method or lack of proper education in handling its system. Remarkably, Federal Inland Revenue Service (FIRS) in juxtaposition with the Nigerian Inter-Bank Settlement System (NIBSS) introduced electronic tax payment in 2015 [28,39,53]. Electronic taxation is the automation of all tax processes from tax registration, assessment and filing of returns, payment of taxes, and obtaining receipts.…”

“…Uzoka, and Chiedu [47] noted that in Nigeria, tax revenue contributes the highest revenue share to the federal government, and using this efficient and voluntary compliance method will bring improvements in an array of indicators such as literacy rates, life expectancy, and poverty rate because whenever economic wellbeing is mentioned, attention is usually drawn to the gross domestic product as a specific measure of economic welfare. Therefore, the post electronic era is expected to increase federally collected revenues such that it has a way of reducing tax evasion and which it promotes stable economic growth [50,53] while other researchers have a divergent opinion and see a negative impact in adopting electronic tax; these are evident in the studies of [32,39].…”

“…In Nigeria, the PPT rate is 50% chargeable on profits of petroleum operators under production sharing contracts (PSC), 65.75% for non-PSC operators and 85% chargeable on profits of non-PSC operators after the first 5years. In Nigeria, due to the feeble contributions of tax revenue to federally collected tax revenue, the Federal Inland Revenue Service (FIRS) in conjunction with the Nigerian Inter-Bank Settlement System (NIBSS) introduced electronic tax payment in 2015 [28,39,53]. According to Okunowo [36], e-tax was initiated to increase government revenue generation among others needed to boost economic growth.…”

The impact of attitude towards an e-tax system on tax compliance of Vietnamese enterprises: Adoption of an e-tax system as a mediator

“…According to Che-Azmi and Kamarulzaman ( 2014), the e-tax system is based on the application of information and communication technology that most governments all over the world have been using to improve the provision of public services and public administrative procedures. The e-tax system is considered as the process of assessing, collecting, and managing the taxation process through an electronic system (Oloaye & Atilola, 2018). In similarity, Wasao (2014) defines the e-tax system as an online platform that allows taxpayers to access tax services and fulfill their tax obligations through the internet.…”