Electronic tax system and revenue generation in Nigeria

The study investigated the relationship between electronic tax system and revenue generation in Nigeria with special concern to the moderating effect of Taxpro-Max solution on the relationship between the predictor and the criterion variables. The researcher developed seven (7) specific research objectives, seven (7) research questions, and seven (7) research hypotheses that guided the study. This work was basically anchored on the digital economy taxation theory,tax compliance theory to provide a comprehensive and sufficient understanding of the electronic tax systems and revenue generation dynamics in Nigeria. The study’s philosophical foundation was anchored on both positivism and critical realism, utilizing a triangulation approach that combines quantitative and qualitative methods. They investigator adopted the ex-post-facto research design since it best suits the research objectives and the type of data that were collected. The population of this study was the entire Nigerian economy represented by Federal Inland Revenue Service (FIRS) where the elements of data used for this research were extracted. This study employed both judgmental and convenience sampling technique because of their low-cost appeal, ease of convenience, less time-consuming nature and ideal for exploratory research design. Using judgmental sampling technique, a sample of 8years’ period were used (2015-2022). The investigator used convenience sampling to select eight (8) participants from the FIRS who were readily available and easily accessible. In this study, both primary and secondary data were used. Hence, relevant primary and secondary (qualitative and quantitative) data for this study were obtained from knowledgeable tax practitioners and the online portal of Federal Inland Revenue Service (FIRS) and Central Bank (CBN) of Nigeria Statistical Bulletins, 2023. Paired samples statistics was employed since it involves a set of descriptive statistics used to analyze data collected from paired observations or measurements.  Also, paired samples test was used since it is a statistical procedure used to compare the means of two related groups.  Pearson’s Product Moment Correlation Co-efficient (PPMC) was used to determine if there are significant relationships between variables. Regression analysis technique was used to examine relationships between the variables and to make predictions. Moderated multiple regression was finally used to test the effect of the moderating variable on the predictor and criterion variables with the help of SPSS25 and Eview9 software. The paired samples t-test reveals significant changes in specific variables following the implementation of electronic tax systems. Correlation analyses unearth substantial relationships: Strong positive correlation between Taxpayer Identification Number (TIN) and both oil and non-oil tax revenue. Moderate positive correlation between the Electronic Tax Payment System (ETPS) and oil tax revenue, with no statistical significance. Very strong positive correlation between the electronic tax payment systems and non-oil tax revenue. Significant correlation between the electronic tax filing system (ETFS) and oil tax revenue. Moderate but insignificant correlation between the ETFS and non-oil tax revenue. Hence, the study concluded that a significant relationship exists between electronic tax system and revenue generation in Nigeria. Thus, the investigator suggested that policymakers should focus on strategic implementation and promotion of the electronic tax filing system (ETFS) for oil-related taxes due to its strong positive linear relationship with oil tax revenue. They should alsostrengthen TIN registration efforts through awareness campaigns and compliance measures, promoting an expanded TIN base that can boost oil and non-oil tax revenues. They should equally consider investing more in technological solutions to improve electronic tax payment systems performance and efficiency, and explore partnerships with technology providers to integrate innovative solutions.