IMPROVING TAX ADMINISTRATION THROUGH TECHNOLOGY INNOVATION IN NIGERIA (A STUDY OF FEDERAL INLAND REVENUE SERVICE)
DOI:
https://doi.org/10.26458/1913Keywords:
Keywords, tax administration, technology innovation, FIRS, TPB, NigeriaAbstract
This study investigates the impact of technology innovation on tax administration in Nigeria. Primary Data were collected through the use of structured questionnaire administered on 219 staffers of Federal Inland Revenue Service (FIRS) to elicit their responses. Descriptive statistics, Analysis of Variance (ANOVA) and Regression Model were used for the data analysis. The R value depicts that the use of information technology accounted for (76.3%) improvement in tax administration in Nigeria. The results strongly support the TPB in predicting the intention of users to adopt electronic tax-filing systems. The results also demonstrate the significant effect that computer self-efficacy has on behavioural intention through perceived ease of use, perceived usefulness, and perceived risk of use. Based on the findings of this study, implications for electronic tax filing are discussed. Finally, conclusion and recommendations were made based on the findings of the study.References
REFERENCES
Adams, D.A., Nelson, R. R., & Todd, P. A. (1992). Perceived Usefulness, Ease of Use
and Usage of Information Technology: a replication, MIS Quarterly 16(2), 227–247.
Adeyeye, G. B. (2013). The Impact of Taxpayers’ Perception of Good Governance on
Voluntary Tax Compliance in Lagos State, Nigeria. Unpublished Thesis, Department of
Accounting, University of Lagos, Nigeria.
Ajzen, I. (1991). Theory of Planned Behaviour. Organizational Behaviour and Human
Decision Processes, 50(1), 179-211.
Alabede, J.O., Ariffin, Z.Z. & Idris, K.M. (2011). Individual taxpayers’ attitude and
compliance behaviour in Nigeria: the moderation role of financial condition and risk
preference. Journal of Accounting and Taxation, 3(5), 91-104.
Alli, B.D. (2009). Managing the Tax Reform Process in Nigeria. Niger Account. 42(1),
-51.
Anyanfo, A.M.O., (1996). Public Finance in a Developing Economy: The Nigerian Case.
Department of Banking and Finance, University of Nigeria, Enugu Campus. Enugu.
Bandura, A. (1977) Self-Efficacy: toward a unifying theory of behavioural change,
Psychological Review 84(2), 191–215.
BECANS (2007), Business Environment Report. Enugu, African Institute for Applied
Economics 1(15), 10-13.
Berhane, Z. (2011). The Influence of Tax Education on Tax Compliance Attitude.
Unpublished master’s thesis, Addis Ababa University, Ethiopia.
Bobek, D.D. & Hatfield, R.C. (2003). An Investigation of the Theory of Planned
Behaviour and the Role of Moral Obligation in Tax Compliance. Behavioural Research
in Accounting, 15 (1), 13-38.
Central Bank of Nigeria (CBN) (2013). Statistical Bulletin. Abuja: Central Bank of
Nigeria.
Central Bank of Nigeria (CBN) (2011). Annual report and statement of account. Abuja.
Chau, Y. K. & Hu, J. H. (2001). Information Technology Acceptance By Individual
Professionals: a model comparison approach, Decision Sciences 32(4), 699–718.
Chin, W.W. & Gopal, A. (1995). “Adoption Intention in Gss: Relative Importance of
Beliefs”, The Data Base for Advances in Information Systems, 26(2/3), 42-64.
Davis, F.D. (1989). Perceived Usefulness, Perceived Ease Of Use, And User Acceptance
of Information Technology, MIS Quarterly 13(3), 319–339.
Davis, F.D., Bagozzi, R.P. & Warshaw, P.R. (1989). User Acceptance of Computer
Technology: a comparison of two theoretical models, Management Science, 35(8), 982–
Edemode J. (2009). Towards a People-Focused Tax System in Nigeria: Gauge – A
Quarterly Publication of Federal Inland Revenue Service (FIRS).
Federal Inland Revenue Service (2012). Excerpts of the Handbook - Federal Inland
Revenue Service and Taxation Reforms in Democratic Nigeria.
Federal Inland Revenue Service (2013). Tax Benefits. Retrieved November 14, 2013,
from http://www.firs.gov.ng/Tax-Management/Pages/Tax-Benefits.aspx.
Federal Ministry of Finance (2016). National Tax Policy: Federal Ministry of Finance,
Abuja.
Federal Ministry of Finance (2012). National Tax Policy: Federal Ministry of Finance,
Abuja.
Fu, J.R., Farn, C.K., & Chao, W.P. (2006). Acceptance of electronic tax filing: A
study of taxpayer intentions. Journal of Information & Management 43(1), 109 - 126
Guillermo J., Niall M. & Anton K. S. (2013). Information Technology for Tax
Administration. USAID Leadership in Public Financial Management (LPFM) Sponsoring
USAID Office: USAID/Mission Contract Number: EEM‐I‐00‐07‐00005‐00 Contractor:
Deloitte Consulting LLP February 2013 Date of Publication.
Heijden, H., Van der, V.T. & Creemers, M. (2001). Predicting online purchase behaviour:
replications and test of competing models, in: Proceedings of the 34th Hawaii
International Conference System Science, Maui, Hi.
Hoffman, D., Novak, T. and Peralta, M. (1999). Building Consumer Trust Online,
Communications of the ACM 14(2), 80–85.
Hsu, T.H., Wang, Y.S. & Wen, S.C. (2006). “Using the Decomposed Theory Of Planned
Behaviour To Analyse Consumer Behavioural Intention Towards Mobile Text Message
Coupons”, Journal of Targeting, Measurement and Analysis for Marketing, 14 (4), 309-
Hung, S.Y., Chang, C.M. & Yu, T.J. (2006). “Determinants of User Acceptance of the E-
Government Services: the case of online tax filing and payment system”, Government
Information Quarterly, 23(1), 97-122.
Institute of Chartered Accountants of Nigeria (ICAN) (2009), Taxation Study Pack,
Lagos: VI Publishers.
Institute of Chartered Accountants of Nigeria (ICAN) (2010), Taxation Study Pack,
Lagos: VI Publishers.
Kothari, C.R. (2004). Research Methodology Methods and Techniques. New Delhi: New
Age International (P) Limited.
Lee, M. C. (2008). Factors Influencing the Adoption of Internet Banking: An Integration
of TAM and TPB with perceived risk and perceived benefit. Electronic Commerce
Research and Applications 12(1), 303.
Lu, H. P., Gustafson, D. H. (1994). An Empirical Study of Perceived Usefulness and
Perceived Ease of Use on Computerized Support System Use Over Time, International
Journal of Information Management 14(5), 317–329.
Mukasa, J. (2011). Tax Knowledge, Perceived Tax Fairness and Tax Compliance in
Uganda. Unpublished Master Thesis. Makerere University, Kampala, Uganda.
Nel, M.J. (2004). An analysis of the compliance approach used by revenue authorities
with specific reference to case selection and risk profiling. Unpublished master’s thesis,
Rhodes University, Grahamstown, South Africa.
Nelson G. (2002). Information Technology in Support of the tax Administration
Functions and Taxpayer Assistance. 3(5), 2 – 11.
Nzotta, S.M., (2007). Tax evasion problems in Nigeria: A critique. Nigerian Accountants
(2), 40-43.
Odusola, A., (2006). Tax Policy Reforms in Nigeria. United Nations University-World
Institute for Development Economics Research. Research Paper No. 2006/03.
Ogbonna, G.N. & Appah, E. (2012). Impact of Tax Reforms and Economic Growth of
Nigeria: A Time Series Analysis. Journal of Social Sciences 4(1), 62-68.
Ogundele, A.E. (1999). Elements of Taxation. (1st Ed.) Lagos, Libri Services Nigeria
Limited.
Omolehinwa, E. O. & Naiyeju, J. K. (2011). Theory & Practice of Government
Accounting in Nigeria, Lagos: Punmark Nigeria Limited.
Organisation for Economic Cooperation and Development (OECD) (2011). Compliance
measurement – Practice note. Paris: Central for Tax Policy and administration.
Paul, L. and John, I. (2003). Why Do People Use Information Technology? A critical
review of the technology acceptance model Information and Management 40(3), 191–
Riemenschneider, C. K. Harrison, D.A. & Mykytyn, P. P. (2003). Understanding IT
Adoption Decisions in Small Business: integrating current theories, Information and
Management 40(1), 269–285.
Rogers, E.M. (1985). The Diffusion of Innovation, (4th ed.), Free Press, New York, 1985.
Sabitova N. M. and Khafizova A. R. (2015). information technology as factor of
evolution tax administration. Mediterranean Journal of Social Science; MCSER
Publishing, Rome, 6(1), 1 – 5.
Soyode, L. & Kajola, S.O. (2006). Taxation: Principles and Practice in Nigeria, (1st Ed.),
Ibadan: Silicon.
Taylor, S. & Todd, P.A. (1995). Understanding Information Technology Usage: a test of
competing models, Information Systems Research 6(2), 144–176.
Tarkiainen, A. & Sundqvist, S. (2005). Subjective Norms, Attitudes and Intentions of
Finnish Consumers in Buying Organic Food. British Food Journal, 107 (10-11), 808-822.
Tosun, M.S. & Abizadeh, S. (2005). Economic growth and tax components: An analysis
of tax change in OECD. Appl. Econ., 3(7), 2251-2263.
Triandis, H.C. (1977). Interpersonal Behaviour, Brooks/Cole, Monterey, CA.
Venkatesh, V. (2000). Determinants of Perceived Ease of Use: integrating control,
intrinsic motivation, and emotion into the technology acceptance model, Information
Systems Research 11(4), 342–365.
Venkatesh, V. and Davis, F.D. (2000). A Theoretical Extension of the Technology
Acceptance Model: four longitudinal field studies, Management Science 46(2), 186–204.
Venkatesh, V., Morris, M.G. & David, G.B. (2003). User Acceptance of Information
Technology: toward a unified view, MIS Quarterly 27(3), 425 – 478.
Wang, Y. S. (2002). The Adoption of Electronic Tax Filing Systems: An Empirical
Study, Government Information Quarterly, Changhua 20(1), 333-352.
West Group (1999). Black’s Law Dictionary, (7th Ed.).
Wu, J. H., Wang, S. C. & Lin, L. M. (2007). Mobile computing acceptance factors in the
healthcare industry: a structural equation model, International Journal of Medical
Informatics, 76(1), 66-77.
