Nigerian tax-to-GDP ratio has been deteriorating from 7% in 2013 to 6% in 2017, which is far below the generally acceptable threshold of 15%; possibly due to lack of filing tax return by over 65% of the registered taxpayers. Hence, e-tax filling was introduced to improve tax administration efficiency. Notwithstanding, Nigerian tax system remains the most complex in Africa as it takes about 908hrs to comply, higher than the regional average of 307hrs. Therefore, this study investigates the factors influencing the acceptance of e-tax filling by micro-entrepreneurs in Northwestern Nigeria. The data of the research will be collected through questionnaire. Partial Least Squares (PLS) Structural will be used for data analysis. The research could have the policy implications of highlighting means of reducing the percentage of taxpayers not filing their tax returns, reducing compliance complexity, and guide to board of internal revenues of the Northwest when introducing e-tax filing systems.Read more
Bridging the gap between tax avoidance and compliance: can the framing of tax as a responsible business practice help?
Why do firms engage in aggressive corporate tax planning and tax avoidance? (How) can self-regulation, through Corporate Social Responsibility (CSR), complement public regulation in minimising the negative impacts of aggressive corporate tax planning and tax avoidance on government tax revenues? These questions bring to the fore the tension between tax illegitimacy and legality, which can confuse actors – e.g. regulators, managers, tax accountants, lawyers, and consultants – and obfuscate tax policies (West, 2017). As such, the tension needs to be resolved to enhance tax compliance and minimise irresponsible strategic tax planning, which is an economic leakage. In addition, the questions seek to explore how the emerging field and practice of CSR in Nigeria, which has been predominantly and erroneously framed as philanthropy (Amaeshi et al., 2006; Amaeshi et al., 2015), can be leveraged, by interested actors, to address possible reductions in government tax revenues (partly as a result of aggressive strategic tax planning and tax avoidance schemes) by framing taxation as a responsible business practice. This dual mandate lies at the heart of this research project. Data collection will involve interviews and focus groups with selected tax actors. It is anticipated that the findings will contribute to practice, policy, and theory.Read more
In 2017 the Federal Inland Revenue Service (henceforth, FIRS) introduced the Integrated Tax Administration System (ITAS) with the aim of improving ease of doing business with FIRS, enhancing voluntary compliance and boosting revenue generation. Knowing that the Nigerian private sector has had history of low adoption of technologies like the mobile money service introduced by the Central Bank in 2011, this study seeks to understand the level of awareness and rate of adoption of ITAS by both the company and personal income tax payers. It also seeks to understand the factors that drive the adoption of this system, including the firm/business characteristics, the corporate governance structure, and the external environment that surrounds the firm/business operations.Read more