Title: Digital Accounting and Tax Revenue in Nigeria
Authors: ALIYU, ABUBAKAR SADIQ; MSc
Volume: 8
Issue: 7
Pages: 88-102
Publication Date: 2024/07/28
Abstract:
The quest for improved delivery of public services to the members of the general public has necessitated the need for government at all levels to collect sufficient revenue that can cover budget expectations by encouraging taxpayers to better fulfil their tax obligation. In a rapidly evolving digital age, use of information technologies and tax management strategies is crucial. One such innovation that's been making waves in the global ecosystem, is the digital tax accounting. It allows individuals and businesses to manage their taxes conveniently and efficiently. This digital platform has transformed the way taxpayers interact with the tax authority and government of many nations. The study examined the relationship between digital accounting and tax revenue in Nigeria. The researchers adopted expost- facto research design for the study and the relevant secondary data used was obtained from Central Bank of Nigeria (CBN) Statistical Bulletins, Federal Inland Revenue Service (FIRS) Publications OECD and World Bank documents from 2002 - 2021. pre digitalization period and post digitalization period were the proxies of digital accounting while oil taxes and non-oil taxes were the proxies of tax revenue. The research hypotheses test and other data were analyzed by descriptive statistics and paired sample t-test with the aid of SPSS 27. The findings revealed that pre-digitalization period post-digitalization period positively and significantly related to oil taxes and non-oil taxes in Nigeria during the period of this study. We therefore conclude that digital tax accounting has positively contributed to the generation of tax revenue in Nigeria. We recommended that the Federal government through Federal Inland Revenue Services should work out appropriate modalities to sensitize individual corporate taxpayers on the nitty-gritty of E-tax payment with a view to maximize the expected positive impact of the digital accounting technology.