Tax System Automation and Revenue Yield in Nigeria: A Case Study of Ekiti State Internal Revenue Services
T. S. Adewuyi *
Department of Accounting, College of Social and Management Science, Afe Babalola University, Ado-Ekiti, Nigeria.
O. E. Olomu
Department of Accounting, The Federal Polytechnic, Ado-Ekiti, Nigeria.
A. G. Ige
Department of Accounting, The Federal Polytechnic, Ado-Ekiti, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
The tax revenue system serves as the foundation for good financial management and provides the most reliable and important source of government revenue in both developed and developing countries. However, tax revenue has constantly remained low among developing countries, especially in Nigeria, despite the adoption of tax system automation, considering its contribution to the gross domestic product (GDP) over the years. This study examined the effect of tax system automation on revenue yield in Ekiti State, Nigeria. The study employed a survey research design, using a purposive sampling method to select a sample size of eighteen (18) staff of the Federal Inland Revenue Service (FIRS) tax officers and one hundred and thirty-four (134) Ekiti State Internal Revenue officers. The result revealed that electronic tax registration, electronic tax filing of returns and electronic payment have a positive and significant impact on revenue yields in the State. The study concluded that tax authorities need to take crucial steps to maximise tax system automation.
Keywords: Electronic tax registration, electronic tax filing, electronic tax payment, tax system automation, revenue yield