European Journal of Accounting, Finance and Investment

E-Taxation On Revenue Generation In Nigeria: A Pre And Post E- Taxtion Analysis

Agbaraevoh Roseline Chinasa

Department of Accounting

Chibunna Onyebuchi Onwubiko

Department of Accounting

Ndukwe Wisdom Tochi

Department of Accounting

Keywords: Federally generated Revenue, E-Taxation, company income tax, capital gain tax, value added tax

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Abstract

The study examined the effect of E-Taxation on Revenue generation in Nigeria. The investigation applied ex-post facto research design. Secondary data were sourced from Central Bank of Nigeria Statistical Bulletin and Quarterly Economic Reports. The taxation data were sourced from Federal Inland Revenue tax report (FIRS). The study period was on a quarterly bases and the period for the pre-e-taxation (before the introduction of e - taxation) covered 13 quarters, spanning from the first quarter of 2012 to the first quarter of 2015 while the period for the post e taxation (after the introduction of e taxation) covered 19 quarters spanning from the second quarter of 2015 to the 4th quarter of 2019. Regression analysis was used to analyze the equation. The result shows that CIT revenue during the pre- electronic tax regime has slightly significant influence on revenue generation while the relationship has shown some inconsistency after the electronic tax system was introduced. This result implies that the structural adjustment in post e taxation has resulted in a slight variation in the relationship between CIT and FCR. The result also reveals that the relationship between VAT in the pre-electronic tax regime and the post electronic tax collection regime has inconsistencies. While the relationship was positive and significant in the pre-e-tax period, it was found to be positive but insignificant in the post-tax period. Suggesting that the introduction has impacted on the collection of value added tax contribution to total revenue accruable to Nigeria. Results also reveal that the relationship between CGT and FCR is consistent across the two tax collection regimes. CGT showed a consistently negative and insignificant relationship with FCR showing that the structural adjustment in the tax collection regime had no impact on CGT contribution to total federally collected revenue in Nigeria. Result of further tests shows the presence of structural break in Q2 of 2015 which the introduction of electronic tax collection. This implies that the introduction of e tax collection has resulted in a change in relationship between taxation and revenue generation in Nigeria has impacted on the collection of value added tax contribution to total revenue accruable to Nigeria.

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