E-tax system effectiveness in reducing tax evasion in Nigeria

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This study examined how electronic tax system (E- tax system) reduces tax evasion in Nigeria. The survey sample was drawn from Federal Inland Revenue Service (FIRS) staff and small and medium-scale enterprise taxpayers registered in F.C.T., Abuja, Nigeria. Primary data was derived from a questionnaire administered to a population of 60 officials and employees of the FIRS and taxpayers at a small and medium-scale enterprise registered in F.C.T., Abuja, Nigeria. The secondary data used was extracted from the tax revenue collection report on the FIRS platform for 2000–2019 (20 years). The conclusive research design was used. General linear model and linear regression were used to analyze the data collected. The E-tax system was measured using actual tax revenues and the level of electronic tax services. In contrast, tax evasion was measured using tax compliance and mind-set of taxpayers towards E-tax system. Taxpayers’ attitudes towards E-tax system, actual tax revenue, tax compliance and the level of electronic tax services were used as mediating and control variables; thus, results established a significant relationship, and this relationship is an adverse one. The work shows that an effective electronic tax system will significantly reduce tax evasion. Therefore, the proper implementation of the electronic tax system helps mitigate the problem of tax evasion that causes economic and social detriments in the tax administration system.

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    • Figure 1. Influence of E-tax System on Tax Compliance in Nigeria
    • Figure 2. Frequency of E-tax services and Attitude of Taxpayers
    • Table 1. General linear model (GLM)
    • Table 2. Regression result of the variable (2000–2019)
    • Funding acquisition
      Adegbola Olubukola Otekunrin, Tony Ikechukwu Nwanji, Damilola Felix Eluyela
    • Project administration
      Adegbola Olubukola Otekunrin, Tony Ikechukwu Nwanji, Henry Inegbedion
    • Supervision
      Adegbola Olubukola Otekunrin
    • Validation
      Adegbola Olubukola Otekunrin, Henry Inegbedion
    • Visualization
      Adegbola Olubukola Otekunrin
    • Writing – review & editing
      Adegbola Olubukola Otekunrin, Tony Ikechukwu Nwanji, Damilola Felix Eluyela, Henry Inegbedion
    • Resources
      Tony Ikechukwu Nwanji, Damilola Felix Eluyela, Temitope Eleda
    • Methodology
      Damilola Felix Eluyela, Henry Inegbedion
    • Software
      Henry Inegbedion
    • Conceptualization
      Temitope Eleda
    • Data curation
      Temitope Eleda
    • Formal Analysis
      Temitope Eleda
    • Investigation
      Temitope Eleda
    • Writing – original draft
      Temitope Eleda