Internet Payment System and Personal Income Tax Payment in Nigeria

Abstract

<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