THE EFFECT OF E-TAXATION ON TAX COMPLIANCE AND REVENUE GENERATION IN ANAMBRA STATE INTERNAL REVENUE SERVICE, AWKA

Abstract

Taxation is a veritable and sustainable source of revenue for government and a tool for fiscal policy and macro-economic management. It is the view of this study that despite the adoption of e-taxation in Anambra state, revenue derived from taxes still remains very low and no physical development actually took place, hence the impact of revenue generated from taxation on the poor is not being felt despite the adoption of e-taxation in the state.  This study seeks to evaluate the effect of e-taxation on tax compliance and revenue generation in Anambra State Internal Revenue Service (ASIRS). Specifically, the study examined the relationship between electronic tax payment requirement by the ASIRS Awka and improved tax compliance in Anambra state. Secondly, to explore the effect of e-taxation on tax revenue generation in ASIRS, Awka. This study adopted the survey design. The population for the study comprised all the staff of ASIRS totaling nine hundred and forty-two in number (942). The data collected was analysed using frequency counts, percentage, mean scores and standard deviation to answer the research questions while Pearson Product Moment Correlation Coefficient statistical analysis was used to the test of hypotheses with aid of Statistical Package for Social Sciences (SPSS). The study established that there is a significant positive relationship between electronic tax payment and tax compliance in Anambra state. It also found that e-taxation has significant positive effect on tax revenue generation in Anambra state. The study recommends that, Anambra state government through the ASIRS should conduct more enlightenment seminars in all the local government to increase the knowledge on the use and adoption of electronic-tax. The revenue generating agency, ASIRS should ensure the use of electronic or system audit so as to track the payment pattern of tax payers. This will further help improve the levels of revenue generation within the state.