European Journal of Accounting, Finance and Investment

The Impact Of Electronic Tax Payment System On Tax Revenue In Nigeria: The Moderating Role Of Technology

Ndalu ThankGod Chukuemeka Ph.D

Department of Marine Economics and Finance, Nigeria Maritime University, Okerenkoko Delta State, Nigeria

Igwe John Charly Ph.D. FCA

Bursary Department, Nigeria Maritime University, Okerenkoko Delta State, Nigeria

Keywords: Electronic Tax payment System, Companies Income Tax, Capital Gains Tax, Tax Revenue

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Abstract

Government quest on how to come up with alternative ways of increasing public revenue in order to meet up with its expenditure bill as a result of the fluctuation in oil price globally cannot be over emphasized. This quest for alternative ways to increase public revenue necessitated this study. This study investigated the relationship between electronic tax payment system and tax revenue of the Federal Inland Revenue Service (FIRS) and Rivers State Internal Revenue Service (RIRS). The sample size for the study consist of two hundred and eighty (280) staff of FIRS and RIRS in Rivers State out of nine hundred and thirty eight (938) staff of the Revenue Services using Taro Yamane formula for sample size determination of 1967. Primary data on electronic tax payment system and tax revenue were collected from respondents using the questionnaire instruments. Data were analyzed using descriptive and Pearson Correlation Coefficient Statistical tools with the aid of Statistical Package for Social Sciences (SPSS) version 23.0.  The findings at 0.05 level of significance reveals that e – payment system has a positive and a moderate relationship with companies income tax yield (r = 0.586**) and capital gains tax yield (r = 0.545**). Based on the findings, it was concluded that electronic tax payment system has significant relationship with tax revenue. Therefore, it was recommended that the tax authorities should put in place measures as to increase the number of people using electronic tax payment system as this will enhance tax compliance. The tax authorities should ensure that the challenges facing electronic tax payment system are handled as to increase tax revenue for both the state and federal government. Finally, improvement in technology is recommended because technology was identified to have moderating influence between electronic tax payment system and tax revenue.