Arts and Social Sciences Journal

Electronic Taxation and Improved Tax Compliance: The Case of Tax Evasion and Avoidance in Enugu State, Nigeria

Abstract

Edward A. Egbara, Henry I. Ofodu* and Ifeyinwa U. Egbara

This study examined the issue of e-taxation and improved tax compliance: the case of tax evasion and avoidance in Enugu State, Nigeria. The study focused on two specific objectives. It examined how e-taxation has reduced tax evasion in Nigeria; and how e-taxation has helped in stemming the issue of tax avoidance in Enugu State of Nigeria. The study adopted an ex-post facto research design. Analysis conducted in the study made use of secondary quantitative data collated from the Federal Inland Revenue Services (FIRS), National Bureau of Statistics (NBS) and Enugu State Internal Revenue Service (ESIRS). The study revealed that e-taxation has significantly reduced tax evasion by increasing revenue generated in Nigeria. The study discloses higher mean value for tax revenue after the adoption of e-taxation when compared with the mean value before the adoption of the e-taxation system. It also revealed that e-taxation has significantly helped in stemming the issue of tax avoidance by increasing revenue generated in Enugu State of Nigeria. The analysis of the data indicated higher mean value for tax revenue after the adoption of e-taxation in Enugu State when compared with the mean value before the adoption of the e-taxation system. The study made some vital recommendations which include the need for FIRS to create an electronic tax payment system mobile App which will serve as a means of creating more awareness and simplification of the e-tax system in the country. It was concluded in this study that the e-taxation system commands high tax compliance than the manual system era in Nigeria.