USE OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) IN TAX ADMINISTRATION AND TAX COMPLIANCE IN NIGERIA

Abstract

In most economies, tax authorities have reaped the benefits of digitisation and increased revenue collection by 
integrating technology into their operations. This study uses a case-based approach to examine how the use of 
information communication technology influences tax administration and tax compliance in Nigeria. Over time. The 
Nigerian tax system has not been able to influence its stated perceived objectives as a result of some delays and 
challenges which include; lack of stewardship amongst taxpayers, collection of taxes, complex tax payment method 
and tax offsetting; lack of technical experience, tax evasion, fraud, government instability which prompts 
noncompliance with relevant tax laws, poor database recordkeeping. The conclusion of this study is that investors 
will find it easier to fulfill their tax obligations to the federal and state governments through convenient and  
transparent electronic tax payment platforms, and tax authorities will be able to easily share information on a tax 
payer. In the light of this, the use of ICT in tax administration has typically increased the degree of tax compliance 
in Nigeria. While there are certain drawbacks to using ICT in tax administration, the benefits far outweigh the 
perceived and practical drawbacks and thereby make a recommendation that FIRS should implement a Mobile App 
electronic tax site that is compatible with a variety of mobile operating systems.