Internet Payment System and Personal Income Tax Payment in Nigeria

Tax revenue generation in Nigeria has faced significant challenges due to issues such as corruption, embezzlement, and the level of electronic payment literacy among users. This paper explores the relationship between the internet payment system and personal income tax revenue generation in Nigeria. Data spanning from 2012 to 2021, obtained from the Federal Inland Revenue Service, Prom ax, the Central Bank of Nigeria, and the National Bureau of Statistics, were analyzed using various statistical methods, including Ordinary Least Square Regression Analysis, Autoregressive Distributed Lag, co integration, stationary tests, Augmented Dickey-Fuller unit root tests, and an error correction model. The empirical results of the study indicate that electronic payment significantly relate to tax revenue generation. The study therefore concludes that internet payment system has the potency to make significant contribution to tax revenue generation and recommends that tax revenue generation should be increased through proper linkage of information on Nigeria’s taxable audits like national identity cards numbers, bank verification numbers and individual potential payer’s bank accounts detail

Electronic Payment System and Tax Payment in Nigeria

This study investigates the factors affecting the adoption of electronic payment systems for tax payment in Rivers State, Nigeria. Given the increasing importance of digitization in financial transactions, understanding these factors can provide valuable insights for policymakers, taxpayers, and accounting professionals alike. The aim is to evaluate the role of four primary variables: ease of use, security concerns, government support, and taxpayer behavior in the successful implementation of electronic tax payment systems. The study employed a survey design and was conducted among 400 adults working in Rivers State using a snowballing sampling technique. Questionnaires were administered to gain insights into the perspectives of those who pay personal income taxes. Multiple regression analysis indicated that all four variables have a significant positive relationship with the adoption of electronic payment systems for tax. The adjusted R² value of 0.70 suggests that the model explains 70% of the variance in system adoption. From an accounting standpoint, the results imply that electronic tax payment systems can bring about substantial improvements in financial record-keeping, compliance, and cost efficiency. Particularly, the study findings corroborate several existing theories in financial behavior and technology acceptance. Based on these findings, the study recommends further investment in enhancing the system’s user interface and security features. Moreover, educational campaigns by the government and training for accounting professionals are essential for maximizing the system's utility

Internet Payment System and Personal Income Tax Payment in Nigeria

<p>Tax revenue generation in Nigeria has faced significant challenges due to issues such as corruption, embezzlement, and the level of electronic payment literacy among users. This paper explores the relationship between the internet payment system and personal income tax revenue generation in Nigeria. Data spanning from 2012 to 2021, obtained from the Federal Inland Revenue Service, Prom ax, the Central Bank of Nigeria, and the National Bureau of Statistics, were analyzed using various statistical methods, including Ordinary Least Square Regression Analysis, Autoregressive Distributed Lag, co integration, stationary tests, Augmented Dickey-Fuller unit root tests, and an error correction model. The empirical results of the study indicate that electronic payment significantly relate to tax revenue generation. The study therefore concludes that internet payment system has the potency to make significant contribution to tax revenue generation and recommends that tax revenue generation should be increased through proper linkage of information on Nigeria's taxable audits like national identity cards numbers, bank verification numbers and individual potential payer's bank accounts details</p&gt