The law and practice of electronic taxation in Nigeria: The gains and challenges

Abstract

Electronic taxation (E-taxation) and its automated processes are gradually phasing out manual tax administration globally. With e-taxation, taxpayers can conveniently pay  their taxes electronically from the comfort of their homes, offices, shops and even while travelling. Tax authorities on the other hand, can now go after tax defaulters with the  electronic tax history of taxpayers on their web portals. According to the World Bank  and PwC² Paying Taxes Report 2013, sixty six economies had fully implemented  electronic filing and payment of taxes as at 2010.³ In 2013, about 66 countries all  over the world have automated core tax processes for effective tax administration and management of taxpayers’ data.4 More countries like Taiwan joined in adopting  e-taxation in 2014. Research reveals that the adoption of e-taxation in some countries has increased tax compliance amongst taxpayers.5 This article aims at comparatively analysing the gains and challenges of utilising e-taxation in tax administration and the legal framework of e-taxation in the United States of America, Australia and Nigeria; and the gains and challenges of utilizing e-taxation in tax administration in the USA, Australia and Nigeria.

Key words: Law and Practice, Electronic Taxation, Gains and Challenges, Nigeria