Electronic Tax System As A Panacea For Tax Revenue Leakages In Nigeria

Abstract

The broad objective of the study is to assess the problems of the traditional tax system in Nigeria and establish electronic taxation as a solution to these problems. The study adopted content analysis in analyzing text books, journals, newspapers and other essential materials that were used to obtain the needed information for the study. Extensive review of the literature showed that electronic tax system solves the problem of low tax collection, unavailability of tax statistics and poor record keeping, complex of payment and high cost of tax compliance. The implication of these findings is that an adoption of electronic tax system is an intelligent means of achieving a system of tax administration that allows for the collection and accountability of required taxes at a minimum cost. The study concluded that there are some challenges with the manual system of administering taxes and that modern technology could simplify these challenges and alienate them in the form e-tax. The study therefore recommended that government should support with everything on their disposal the establishment of e-tax administration so as to start ripping the benefit of high rate of compliance among taxpayers at all levels of government in Nigeria.