Journal of Accounting, Business and Finance Research

ISSN: 2521-3830
Vol. 4, No. 2, pp. 56-65, 2018
DOI: 10.20448/2002.42.56.65

Effect of E-Tax Payment on Revenue Generation in Nigeria

Clement Olatunji OLAOYE1

Oluseyi Olabanji ATILOLA2

Department of Accounting, Faculty of Management Sciences Ekiti State University, Ado Ekiti, Nigeria.
1,2

Abstract

The study examined the effect of e-tax payment on revenue generation in Keywords:
Nigeria. The study period covered six (6) years and three (3) quarters, E-Taxation
spanning from the first quarter of 2012 to the second quarter of 2018. the Tax revenue
Value added tax
period for pre e-taxation covered thirteen (13) quarters, spanning from the Company income tax
first quarter of 2012 to the first of 2015 while the period for post e-taxation Capital gain tax.
covered thirteen (13) quarters, spanning from the second quarter of 2015 to Revenue generation
the second quarter of 2018.The analysis was carried out using Trend E-Government
Sampled t-test.
analysis, descriptive statistics of mean and standard deviation, paired
sampled t-test. The findings revealed that there was insignificant positive Licensed:
difference between pre and post value added tax revenue with t-statistics and p- This work is licensed under a
value of 0.520 and 0.612 respectively. This connotes that e-tax payment has an Creative Commons Attribution 4.0
License.
insignificant positive effect on value added tax revenue in Nigeria. Similarly, it
was discovered that there was a positive insignificant difference between pre and Publisher:
post company income tax revenue with t-statistics and p-value reported to be Scientific Publishing Institute
0.833 and 0.421 respectively. That is, e-tax payment has negative insignificant
impact on Value Added Tax (VAT) revenue. Lastly, the findings revealed that
there is a positive insignificant difference between pre and post capital Gain tax
revenue with t-statistics and p-value of 1.218 and 0.247 reported to be
respectively. That is, that e-tax payment has a positive insignificant effect on
company income tax revenue in Nigeria. It was therefore concluded that E-tax
payment has not contributed to capital gain tax, value added tax and company
income tax generation in Nigeria.

Funding: This study received no specific financial support.

Competing Interests: The authors declare that they have no competing interests.

1. Introduction
Electronic revenue collection in developing countries has gained increased prominence. According to
Cobham (2010) the electronic tax system was introduced globally about 30 years ago. It started in 1986 as a
little computer test program in which only five tax payers from Cincinnati, Raleigh Durham, and Phoenix
agreed to participate. Since then, electronic tax system has become a common channel, serving various tax
payers across the global yearly. Wasao (2014) describes electronic tax system is an online system or channel
where taxpayers are able to have access or permit to the platform through the use of internet, in other to have
access to all the services provided by the tax authority such as the registration for a tax identification number,
electronic tax filing of tax returns , the Electronic taxation system that was introduced in Nigeria in the year
2013 by the Federal Inland Revenue service (FIRS). FIRS for instance is one of the financial and tax
authorities in the world that conducts this Electronic tax payment system through the Business Process
Improvement (BPI) and increases scope of electronic interface with various taxpayers so as to increase the
efficiency and effectiveness of staff and services. According to Crede (2008) governments world-wide, have
invested highly in electronic systems for the past two decades. Harold (2011) wrote that an efficient national

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revenue collection system is the hub of every public administration system and the cornerstone of sound fiscal
management. The researcher argued that there is a need to look into the structural and operational
frameworks governing the national revenue authority, increase treasury control system of all revenue sources,
increase legislative overview and credibility. FIRS is a public sector organization that operate extensively on
electronic systems strategy in order to deliver on its core responsibility of collecting revenue on behalf of the
Government of Nigeria. With the introduction of Electronic Taxation Payment system, it is expected that
there will be an obvious increment in tax revenues, which will in turn bring about an increase in federally
collected revenues as a whole as noticed in various countries of the world after it introduction of e-tax
payment system. However, since the introduction of E-Tax payment system in 2015 no empirical evidence has
shown the extent to which the new technology has achieved this purpose on company income tax, value added
tax and Capital gain tax, hence necessitating this research

2. Reviewed Literature
2.1. Conceptual Framework
Concept of Taxation:
Taxation like most topics or subject matter in management sciences is difficult to give a universal
definition acceptable to everyone. Despite this fact however, some literature on taxation have attempted to
define it in such a way that it will at least give insight or a general picture of what it is all about. The
international Encyclopedia of social sciences defines taxation as “A general concept or device used by
government to extract money or other valuable things from people and organization by the use of law. Che-
Azmi and Kamarulzaman (2014) Defined tax as a compulsory levy imposed on individuals and organizations
by government. He concluded that tax is a good source of revenue to government, thereby bring about
economic growth
Udabah (2002) sees tax as a levy necessary to meet the cost of services and infrastructural development
desired by the community which should be provided by the government. Primarily, he argued that taxation
was initially introduced to raise revenue to meet government expenditure. From the definitions above among
several of its kind, it could clearly be seen that taxation is therefore, one among other means of revenue
generation of any government to meet the desires of the citizens. The purpose of taxation as stated by the
French law is for the provision of the armed forces and administrative expenditures. Miller and Oats (2006)
maintain “taxation is required to finance public expenditure “however there are other sources of revenue
generation for government these includes but not limited to Fines and Charges, Foreign aides and grants,
Loans etc .

E-Taxation
E-taxation is the process of collection and administration of tax procedure through an electronic medium.
According to Che-Azmi and Kamarulzaman (2014) E-tax payment system is one of the ways through which
governments globally make use of information and communication technologies to enhance the provision of
public services and the circulation of public administration information to the society. Wasao (2014) describes
electronic tax system is an online system or channel where taxpayers are able to have access or permit to the
platform through the use of internet, in other to have access to all the services provided by the tax authority
such as the registration for a tax identification number, electronic tax filing of tax returns
E-tax payment system was introduced in 1986 in the U.S.A. In Australia electronic tax payment was
introduced in 1987. In 1993, Canada started the usage of electronic tax payment other developed countries of
the world such as Malaysia and Netherlands introduced electronic payment of tax to their taxpayers in 2009.
In Africa, Uganda introduced electronic tax payment system in 2009, while Egypt started in March 2013, so
as to maintain a close proximity with the international trades towards automated payments systems, for e-
government.
In Nigeria e-tax payment system was introduced in 2015 by the Federal Inland Revenue Service (FIRS)
in conjunction with Nigeria inter - bank settlement System (NIBSS), According to Okunowo (2015).
Electronic tax payment was introduced so as to increase revenue Generation and for easy accessibility as tax
payers are able to pay taxes from different locations and at various time. FIRS has an Information
Communication Technology (ICT) department that provides support and customer care services to taxpayers
and also with the main aim of increasing revenue generation and enabling voluntary acceptance of the system
by taxpayers.
In the authority of Abdulrazaq, Issa, and Abdulrazzak (2015) Elements of Electronic Tax Payment
systems in Nigeria are:
i. Taxpayers in Nigeria can pay the following taxes online, e.g. Value Added Tax (VAT), Petroleum
Profits Tax (PPT) Capital gains Tax (CGT) and Companies Income Tax (CIT), through the online
system.
ii. More so, tax payers can pay their taxes directly from their various banks account and this is achieved by
FIRS in conjunction with Nigeria inter - bank settlement System (NIBSS),

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iii. Tax clearance certificate can now be easily applied for and processed online without having to visit the
office of the tax authority
iv. Easy checking and verification of Tax Identification Number (TIN) thereby making the process of
deduction of withholding taxes very easy
v. Electronic exchange of information between tax payers and FIRS official.
vi. Charging of fines and fees for lateness: The online system automatically calculate and impose fines,
charges and penalties for late submission of tax returns or late payment of taxes.

Value Added Tax, Company Income Tax and Capital Gain Tax
Bird (2005) defined value added as a multi-staged tax that is charged on goods and services in each stages
of production, in Nigeria it was known as service tax before it was charged to value added tax, the final burden
of tax or the incidence of tax falls on the consumer it is an indirect tax
Company Income Tax: Companies are mandated by law to pay company income tax in Nigeria based on
the profit. The amount charged is 30% on the profit earned in the year preceding assessment. Companies
resident in Nigeria are liable for CIT on their worldwide income and non-resident companies are liable only to
CIT on their Nigerian-source income.
Capital Gain Tax: Jones (2003) described capital gain tax as a tax on capital gains, the profit realized on
the sale of a non-inventory asset that was greater than the amount realized on the sale. The most common
capital gains are realized from the sale of government bonds precious metals, and property. The amount
charged is 10% of the profits from the sale of the qualifying assets.

2.2. Theoretical Framework

Technology Acceptance Model (TAM)
This theory was propounded by Davies (1989) the theory was later modified by Venkatesh and Bala in
2008, states that an individual‟s intention towards using a new system is determined by perceived usefulness,
and perceived ease of use (PEOU), „„the degree to which the user expects the target system to be free of effort
and more so help to increase the degree of efficiency and effectiveness of performance. Accordingly the
perceived ease of use also has a direct effect on predicting usage. TAM models are very useful within and
across organizations setup for accessing the applications or technologies, or to make comparisons between
user groups or applications. However, the limitation of TAM is when it is used outside of the work place
Perceived usefulness (PU) – This refers to the extent to which an individual believes that using a
specific system would enhance and improve job performance
Perceived ease of use (PEOU) –This refers to the extent to which an individual believes that by using a
specific system would be easy to use and free from using a lot of pressure or effort (Davies, 1989).
Theory of Innovation Translation
Theory of Innovation Translation was developed by Arthur Tatnall in 1990 it is an alternative view of
theory of innovation diffusion, it is a theory of innovation in which instead of using an innovation in the form
it is agreed upon or proposed, potential adopters translate into a form that suits their needs that is the
potential users of the innovation decides to modify the innovation in a way that best fit its current system and
not adopting the innovation the exact way it was proposed. In the case of this study the innovation at hand is
e-tax payment system, while the actor is the Federal Inland Revenue Service, it is expected that FIRS adopt e-
tax in Nigeria not in the way it was adopted in other nations of the world rather it should be adopted in a way
that suit the level of economic and technological development in the country

2.3. Empirical Review

Lai (2008) examined the effect of e-filling on revenue generation in Malaysia; it revealed the extent to
which tax revenue generation has contributed towards the economy‟s revenue and Gross Domestic Product
and also the effect of tax evasion and tax avoidance on revenue generation in Malaysia. The study employed
both primary and secondary sources of data. Using a survey research design, both descriptive and regression
analysis were carried out on the data. Findings from the study revealed that taxation has a significant
contribution on revenue generation, taxation has a significant contribution on Gross Domestic Product (GDP)
and tax evasion and tax avoidance have a significant effect on revenue generation in Malaysia.
Amabali (2009) studied the antecedents of paperless income tax filing by young professionals in India
using Regression analysis. The antecedents of young Indian professionals depended on the perceived ease of
the tax system, personal innovativeness in information technology, relative advantage, performance of filing
service, and compatibility
Pippin and Tosun (2014) examined electronic tax filing in the United State of America The study
summarizes and analyses the demographic, socio-economic, and geographic factors affecting electronic tax
filing (e-filing) in the United States for the years 1999, and 2004–2007 and the growth in e-filing between
1999 and 2007. Secondary data sourced from the IRS Statistics of Income (“SOI”) Division and additional
demographic and geographic information from the Bureau of Economic Analysis (BEA), the Bureau of Labor
Statistics (BLS) and the census bureau were used; Analyses was carried out using regression, the rates of e-
Journal of Accounting, Business and Finance Research, 2018, Vol. 4, No. 2, pp. 56-65

filling are noticed to be lower in rural communities with low population and with a lower share of females,
Surprisingly, educational attainment is negatively correlated with e-filing rate and growth in e-filing.
Nasir (2015) examined implementing electronic tax fillings and payments in Malaysia; the main objective
was to point out the benefits of maintaining a good e-tax system as opposed to a manual system. The study
made use of secondary data from Malaysian Inland Revenue report from 2004 to 2011 using trend analysis to
highlight the increase in tax returns since the adoption of an e-tax system in 2004. For the first two years, the
number of taxpayers using the e –filling system remained far below expectation at about 5% and the tax
authorities were still tackling the challenges posed by the new system such as timely and costly adaptation of
the system, uncertainty and security problems, lack of technological exposure in the country etc. all of which
had little or no impact on tax returns. 2006 to 2011 brought an increase in the users of the system from the
disappointing 4% to an Encouraging 34% and37% in 2012,over the same period tax returns increased from
14.5% of 52GDP to 15.3%. It also showed how compliance was increased and fewer hours used in collecting
taxes. The conclusion of the study was that Electronic systems for filling and paying taxes, if implemented
well and used by most taxpayers, benefit both tax payer and tax authorities and guarantees a better standard
of living for all citizens.
Allahverd, Alagoz, and Ortakapoz (2017) examined the effect of e-taxation system on tax revenue and cost
in Turkey, the study used secondary data gotten from the Turkish revenue authority, the data were examined
in two groups which are pre-electronic tax period of 1993-2004 and post-electronic tax period of 2005-2016.
Mann-Whitney U Test was used to analyze the data. The research also provided information on the electronic
transformation of the tax system and the Turkish Tax System. According to the empirical result of the
research, the transition to the electronic tax system positively affected the tax revenues and reduced the cost
per tax.
Barati and Bakhshayesh (2015) examined electronic tax system and the challenges facing kermansah
province tax payers in Iran, the researcher made used of primary data gotten from questionnaires administered
to resident of kermansah province, analyses were carried out using Spearman correlation coefficient, variance
analysis, superiority indexes, the agent exploring analysis, structural equations model , in which high
sensitivity is used to check their compliance and review. Results show that: technical and infrastructural
variables(95/0), social influence(90/0), the expected effort(51/0), legal issues(40/0), expected
performance(32/0), information access (18/0) and perceived risk(11/0) are factors of importance and more
influence on the affecting factors for the adoption of electronic tax, respectively

3. Data and Methods

The study examined the effect of Electronic tax payment on revenue generation in Nigeria, Secondary
data were utilized for this work, and the data were sourced from Federal Inland Revenue Service tax report
and Central Bank of Nigeria Statistical bulletin and Quarterly Economic Reports. The data sourced were value
added tax, company income tax and capital gain tax. The study period was on quarterly bases and the period
for pre e-taxation covered 13 quarters, spanning from the first quarter of 2012 to the first of 2015 while the
period for post e-taxation covered 13 quarters, spanning from the second quarter of 2015 to the second quarter
of 2018.
In view of the research design, paired sample t-test otherwise known as Pre-Post Test was used as the
data analysis technique. The appropriateness of this method can be justified from the fact that each variable
was grouped into two observations (before e-tax payment system adoption and after e -tax payment system
adoption).

4. Data Analysis and Discussion of Results

As specified earlier, the variables employed in this study as specified in the model specifications are capital
Gain Tax (CGT), Value Added Tax (VAT) and Company Income Tax (CIT) E-taxation. The analysis was
carried out using line and symbol graph, descriptive statistics of mean and standard deviation, paired sampled
t-test. All these were achieved through E-view 9 and SPSS version 20.

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4.1. Trend Analysis of the Variables

4.1.1. Trend Analysis of Capital Gain Tax (CGT) Before the Advent of E-Taxation
Table-1. Company income tax, Capital gain tax, and Value added tax.
Periods Company Income Tax Value Added Tax Capital Gain Tax
Pre-Electronic Tax N'BILLION N'BILLION N'BILLION
Q1-2012 116.5074 175.8575 0.5878
Q2-2012 289.0813 178.9823 2.7694
Q3-2012 254.4492 170.6901 4.1601
Q4-2012 156.4812 185.0252 1.3993
Q1-2013 154.2939 192.1964 0.1667
Q2-2013 400.6694 180.6144 16.7834
Q3-2013 240.7724 207.0707 0.1395
Q4-2013 167.8149 222.802 2.5663
Q1-2014 174.1639 212.3853 0.7838
Q2-2014 556.2703 197.2551 0.2904
Q3-2014 273.129 211.3232 1.5191
Q4-2014 176.8439 201.2417 0.0565
Q1-2015 160.9244 193.3893 0.2486
Periods Company Income Tax Value Added Tax Capital Gain Tax
Post-Electronic Tax N'BILLION N'BILLION N'BILLION
Q2-2015 501.6561 64.9922 10.2796
Q3-2015 65.2876 56.399 0.2634
Q4-2015 265.3192 183.4499 0.2995
Q1-2016 166.0176 198.7343 0.228
Q2-2016 305.3955 197.7765 72.5931
Q3-2016 297.3369 207.214 24.1888
Q4-2016 164.7873 224.474 2.3935
Q1-2017 152.4191 221.3805 0.1106
Q2-2017 364.2424 246.3033 0.8258
Q3-2017 384.9345 250.5607 1.8449
Q4-2017 313.4608 254.1039 0.399
Q1-2018 203.6832 269.7938 0.318
Q2-2018 471.5832 266.7317 6.1663
Source: Federal Inland Revenue Service Quarterly Report from Q1 of 2012 to Q2 of 2018.

CGT
20

16

12

0
I II III IV I II III IV I II III IV I II III IV
2012 2013 2014 2015
Figure-4.1.1. Trend Analysis of Capital Gain Tax (CGT) Before the Advent of E-taxation.
Source: Data Analysis 2018.

Figure 4.1.1 reveals the trend analysis of capital gain tax revenue before the advent of e-taxation from
2012 to 2015. Overview of the trend showed that capital gain tax revenue trended up from the first quarter of
Journal of Accounting, Business and Finance Research, 2018, Vol. 4, No. 2, pp. 56-65

2012 to the third quarter before it declined from the last quarter of 2012 to the first quarter of 2013. It rose
sharply in the second quarter of 2013, declined greatly in the third quarter before it rose again in the fourth
quarter of 2013. In the same vein, from the first quarter of 2014 to the first quarter of 2015, capital gain tax
revenue trended downward.

4.1.2. Trend Analysis of Value Added Tax (VAT) before the Advent of E-Taxation

Figure 4.1.2. Trend Analysis of Value Added Tax (VAT) Before the Advent of E-taxation.
Source: Data Analysis 2018.

Figure 4.1.2 shows the trend analysis of value added tax revenue before the advent of e-taxation in
Nigeria. The analysis revealed a zigzag trend of value added tax revenue from the first quarter of 2012 to the
second quarter of 2013, before a sudden sharp upward trend from the third quarter of 2013 to the fourth
quarter of the same years. The outcome also showed a zigzag trend of value added tax from the first quarter of
2014 to the first quarter of 2015

4.1.3. Trend Analysis of Company Income Tax (CIT) before the Advent of E-Taxation

Figure 4.1.3. Trend Analysis of Company Income Tax (CIT) Before the Advent of E-taxation.
Source: Data Analysis 2018.

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Figure 4.1.3 above revealed that there was an upward trend of company income tax from the base period,
the first quarter of 2012, a downward trend from the second quarter to the first quarter 2013 before it rose
sharply in the second quarter of 2013 and trended downward to the last quarter of 2013. Company income tax
rose gently from the first quarter of 2014, before it trended up sharply from the second quarter of 2014 and
decline greatly from the third quarter of the same year to the first quarter of 2015.

4.1.4. Trend Analysis of Capital Gain Tax (CGT) before the Advent of E-Taxation

CGT
7

0
I II III IV I II III IV I II III IV I II III IV
2015 2016 2017 2018
Figure 4.1.4. Trend Analysis of Capital Gain Tax (CGT) After the Advent of E-taxation.
Source: Data Analysis 2018.

The trend analysis reveals that there was a sharp increase in the second and third quarters of 2015 in
capital gain tax after the introduction of e-taxation, a sharp decrease in the fourth quarter before it maintained
a parallel trend from the last quarter of 2015 to the first quarter of 2017. Averagely, it rose from the second
quarter of 2017 to the third quarter before it trended downward to the first quarter of 2018 and finally rose in
the second of the same year.

4.1.5. Trend Analysis of Value Added Tax (VAT) after the Advent of E-Taxation

Figure 4.1.5. Trend Analysis of Value Added Tax (VAT) After the Advent of E-taxation.
Source: Data Analysis 2018.
Journal of Accounting, Business and Finance Research, 2018, Vol. 4, No. 2, pp. 56-65

The trend analysis revealed that value added tax from the second quarter to the third quarter of 2015
trended downwards slightly, before it rose sharply from the fourth quarter of the same year to the second
quarter of 2018. This reveals the efficiency of e-taxation in the generation of value added tax. This drastic
increase could also be attributed to adoption of electronic tax payment system.

4.1.6. Trend Analysis of Company Income Tax (CIT) after the Advent of E-Taxation

Figure-4.1.6. Trend Analysis of Company Income Tax (CIT) After the Advent of E-Taxation.
Source: Data Analysis 2018.

Figure 4.1.6 reveals the trend analysis of company income tax after the introduction of e-taxation.
Obviously, it could be clearly seen that company income tax revenue has maintained an unstable trend in
Nigeria from the second quarter of 2015 to the second quarter of 2018.

4.2. Descriptive Statistics of Capital Gain Tax (CGT), Value Added Tax (VAT) and Company Income Tax (CIT)
before and After the Advent of E-taxation

Variables Mean Std. Deviation Minimum Maximum

Capital Gain Tax:
Pre 2.4208 4.4951 0.0565 16.783
Post 9.2239 20.213 0. 11 72.59
Value Added Tax:
Pre 194.52 15.966 170.69 222.80
Post 203.22 68.952 56.40 269.79
Company Income Tax:
Pre 240.10 1.2210 116.507 556.27
Post 281.24 129.31 65.29 501.66
Source: Data Analysis, 2018

The table above revealed the state of capital gain tax revenue, value added tax revenue and company
income tax revenue before the advent of e-taxation and after the adoption of e-taxation in Nigeria. From the
result, it could be clearly seen that the mean and standard deviation values of pre capital gain tax revenue
(before the advent of e-taxation) were 2.4208 billion and 4.4951 respectively while that of post capital gain tax
revenue (after the adoption of e-taxation) were 9.2239 and 20.213 respectively. Similarly, the pre minimum
and maximum values of capital gain tax were 0.0565 billion and 16.783 billion respectively for the periods
covered. In the same vein, it was gathered that the post minimum and maximum values of capital gain tax
were 0.11 billion 72.59 billion respectively for the periods covered.
The outcome above shows that the mean and standard deviation values of pre value added tax revenue
(before the advent of e-taxation) were 194.52 billion and 15.966 respectively while that of post value added tax
revenue (after the adoption of e-taxation) were 203.22 and 68.952 respectively. Similarly, the pre minimum
and maximum values of value added tax revenue were 170.69 billion and 222.80 billion respectively for the
periods covered. In the same vein, it was gathered that the post minimum and maximum values of value added
tax revenue were 56.40 billion and 269.79 billion respectively for the periods covered.
From the result, it could be clearly seen that the mean and standard deviation values of pre company
income tax (before the advent of e-taxation) were 240.10 billion and 1.2210 respectively while that of post
company income tax revenue (after the adoption of e-taxation) were 281.24 and 129.31 respectively. Similarly,

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the pre minimum and maximum values of company income tax were 116.50 billion 556.27 billion respectively
for the periods covered. In the same vein, it was gathered that the post minimum and maximum values of
company income tax were 65.29 billion 501.66 billion respectively for the periods covered.

4.3. Paired Sampled T-Test

4.3.1. Paired Sampled T-Test of Capital Gain Tax (CGT), Value Added Tax (VAT) and Company Income Tax (CIT)
before and After the Advent of E-Taxation

Variables Paired Differences

Mean Std. Deviation t df Sig Value
Pair 1 PostCGT- PreCGT 6.8030 20.135 1.218 12 0.247
Pair 2 PostVAT- PreVAT 8.6985 60.297 0.520 12 0.612
Pair 3 PostCIT- PreCIT 41.132 1.7806 0.833 12 0.421
Source: Data Analysis, 2018

It could be deduced from the table above that pair 1 has a mean value of 6.8030 billion and a standard
deviation of 8.6985. Based on the subtraction order, it implies that the value of post capital gain tax revenue
(after the advent of e-taxation) was 6.8030 higher than pre capital gain tax revenue (before the advent of e-
taxation) for the periods this study covered. The t-statistics and p-value reported to be 1.218 and 0.247
respectively implies that there is a positive insignificant difference between post and pre capital gain tax
revenue. Put differently, this means that e-tax payment has a positive insignificant effect on capital gain tax
revenue in Nigeria.
Similarly, the outcome above revealed that pair 2 has a mean value of 8.6985 billion and a standard
deviation of 60.297. Based on the subtraction order, it implies that the value of post value added tax revenue
(after the advent of e-taxation) was 8.6985 higher than pre value added tax revenue (before the advent of e-
taxation) for the periods this study covered. The t-statistics and p-value reported to be 0.520 and 0.612
respectively implies that there is a positive insignificant difference between post and pre value added tax
revenue. Put differently, this connotes that e-tax payment has a positive insignificant effect on value added tax
revenue in Nigeria.
In the same vein, it could be deduced from the table above that pair 3 has a mean value of 41.132 billion
and a standard deviation of 1.7806 Based on the subtraction order, it means that the value of post company
income tax revenue (after the advent of e-taxation) was 41.132 higher than pre company income tax revenue
(before the advent of e-taxation) for the periods this study covered. The t-statistics and p-value reported to be
0.833 and 0.421 respectively implies that there is a positive insignificant difference between post and pre
company income tax revenue. Put differently, this means that e-tax payment has a positive insignificant effect
on company income tax revenue in Nigeria.

5. Conclusions
Literature affirmed that over the years tax compliance levels remain low and tax collections are below the
targets set by most revenue collection authorities. The introduction of electronic tax systems in most
countries across the global divide, developing countries like Nigeria, still face the challenges of low tax
compliance and tax administration. It was argued that online tax systems are rapidly replacing paper-based
tax reporting systems. Promising many advantages over the traditional method of hard copy tax filing, these
systems promise faster processing, lower cost and increased efficiency. This was the basis on which this
research work was conducted to examine the effect of E-tax payment adoption on revenue generation in
Nigeria. Based on the outcome of the analysis carried out, it was concluded that:
i. There is a positive insignificant difference between pre (before the introduction of e-taxation) and
post (after the advent of e-taxation) capital gain tax revenue. This means that E-tax payment has not
contributed to capital gain tax generation in Nigeria.
ii. There is a positive insignificant difference between pre and post value added tax revenue. This means
that E-tax payment has not contributed to value added tax generation in Nigeria.
iii. There is a positive insignificant difference between pre and post company income tax revenue. Unlike
the negative effect of e-taxation on capital gain tax revenue and value added tax revenue, e-taxation
has positively contributed to the generation of capital gain tax in Nigeria but the contribution is not
significant.

6. Recommendations
The following recommendations were made in line with the findings of the study:
i. The Federal government through Federal Inland Revenue Services should work out modalities on how
to sensitize companies on the nitty-gritty of E-tax payment so as to further maximize the expected
positive impact of the initiative.
 Journal of Accounting, Business and Finance Research, 2018, Vol. 4, No. 2, pp. 56-65

ii. Federal Inland Revenue Services should come up with measures to ensure that defaulters are brought to
book and dealt with according to the provisions of the laws.
iii. Federal Inland Revenue Services must ensure that the website is of good quality and accessible to all
and sundry.
iv. To ease accessibility by taxpayers, mobile version of electronic tax portal should be created. This will
no doubt increase the adoption rate by tax payers as mobile phones are being increasingly used
v. There should be a collaborative work between the government, Federal Inland Revenue Services and
taxpayers in Nigeria. This will reveal the shortcomings besetting the effectiveness of the system.

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