Internet Payment System and Personal Income Tax Payment in Nigeria
Keywords:
Internet Payment System, Personal Income Tax, Tax Pro Max, Revenue Generation, Taxation
Abstract
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
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References
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Theobald, F. (2021). Impact of tax administration towards government revenue in Tanzania case of Dar-es Salaam Region. Social Sciences Journal, 7(1),13-21
Venkatesh, V., & Bala, H. (2008). Technology Acceptance Model 3 and a Research Agenda on Interventions. Decision Sciences, 39(2), 273-315.
Vidal, J., et al. (2017). Contingency Theory and Organizational Performance: A Comparative Study. Journal of Organizational Behavior, 38(3), 330-345.
Wepukhulu, R. N. (2016). The Impact of Innovation Diffusion on Technological Advancement (Unpublished doctoral dissertation).
Adegbie, F.F. & Akinyemi, O. (2020). Electronic payment system and revenue generation in Lagos State. Journal of Accounting and Financing Management, 6(1),59-81
Adeniyi, S.I. & Adesunloro, B.R. (2017). Electronic taxation and tax evasion in Nigeria: A study of Lagos State. Journal of Academic Research in Economics, 9(1),37-40
Adeyeye, G.B., Fonga, M.U., Adegege, A.M. & Korubo, A. (2022). The impact of self assessment regulations on personal income tax in Nigeria. Journal of Risk and Insurance, 12(1), 142-160.
Afaha, M. (2019). The Evolution of Digital Payment Systems: Impact on Financial Transactions. Technology and Finance Journal, 40(2), 155-170.
Agimo, R. (2016). Economic Policy and Digital Payment Systems: A Government Perspective. Government Finance and Policy Journal, 14(2), 180-195.
Akpobi, I., & Igbekoyi, B. (2019). Value-Added Tax: A Key Contributor to National Revenue Growth. Journal of Financial Economics, 35(4), 480-495.
Akpubi, M.D. & Igbekoyi, O.E. (2019). Electronic taxation and tax compliance among some selected fast food restaurant in Lagos State, Nigeria ( tax payers perspective). European Journal of Accounting, Auditing and Finance Research, 7(7), 5280.
Aregbeyen, O., & Fasanya, I. (2018). Challenges in Revenue Generation: Insights from a Developing Economy. African Economic Review, 22(3), 180-195.
Awotomilusi, A. (2022). Assessing the Role of Personal Income Tax in Government Revenue Generation. Taxation and Public Finance Quarterly, 8(1), 55-70.
Awotomilusi, N.S. (2022). Tax administration and generation of tax revenue in Nigeria. International Journal of Scientific and Management Research, 5(1),145-152.
Awotomilusi, N.S., Adeghie, F.F & Akintoye, I.R(2019). Influence of voice and accountability or tax revenue in Nigeria. International Journal of research and Innovation in Social Sciences (IJRISS), 3(4),81-89
Bahaa, S.A. (2021). The role of e-payments in enhancing financial performance: A case study of the bank of Palestine. Banks and Banks Systems, 6(4), 1-6
Bhartia, R. (2009). Expediency Theory of Taxation: A Comparative Analysis. Journal of Public Finance, 15(2), 180-195.
Central Bank of Nigeria. (2020). Electronic Payment Systems and Financial Inclusion in Nigeria.
Chioma, E. & Onuora, J. (2021). Effect of e-tax payment on revenue generation in Nigeria. International Journal of Innovative Finance and Economic Research, 9(2),42-51
Cooper, D. R., & Schindler, P. S. (2011). Business Research Methods (11th ed.). McGraw-Hill Education.
Dada, R. A. & Taiwo, I.B. (2023). Bearing of tax audit on tax compliance and revenue generation in Ekiti State. Asian Journal of Finance & Accounting, 12(1),21-45
Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319-340.
Dillon, W. R., & Morris, M. D. (1996). User Acceptance of New Information Technology: Theories and Models. Annual Review of Information Science and Technology, 31(1), 3-32.
Ewa, U.E. (2021). Appraisal of self-assessment tax policy in Nigeria. European Journal of Business and Management Research, 16(1),189-197
Federal Inland Revenue Service. (2021). Annual Report on Tax Revenue Collection.
Fiedler, F. E. (1984). A Contingency Model of Leadership Effectiveness (Unpublished doctoral dissertation). [University Name], [City, State].
Good, H. P., & Thompson, R. L. (1995). Task-technology Fit and Individual Performance. MIS Quarterly, 19(2), 213-236.
Ibe, U. (2023). Tax Policy and Economic Development: A Comparative Analysis of Developing Nations. Journal of Economic Policy and Planning, 30(1), 30-45.
Kessy, S.S.A. (2019). Electronic payment and revenue collection in local government authorities in Tanzania: Evidence from Kinondoni Municipality, Tanzania Economic Review, 9(2), 89-106
Kirti, N. & Agraval, N. (2023). Impact of e-commerce on taxation. International Journal of Information and Computation Technology, 4(1),99-106. Retrieved from http://www.ripublication.
Lagos State Internal Revenue Service. (2018). Enhancing Revenue Collection in Lagos State: A Case Study. Nigerian Taxation Journal, 28(1), 40-55.
National Bureau of Statistics. (2019). Nigerian Tax Revenue Statistics, 2012-2019.
National Payment Systems Vision 220. (2020). Modernizing Payment Systems: A Vision for Financial Efficiency. Digital Economy Review, 5(4), 400-415.
Nwaiwu, J. N., & Amah, B. (2023). Economic Development and Taxation: A Comparative Analysis of Global Economies. International Journal of Economics, 20(3), 150-165.
Nwaiwu, J. N., & Joseph, B. (2023). Examining the Impact of Digital Payment Systems on Revenue Generation in Developing Economies. Journal of Economic Growth, 45(2), 210-225.
Nwaiwu, J.N. & Okoro, L. (2018). Government regulation on tax audit and government tax revenue in Nigeria. International Journal of Advanced Academic Research, Accounting & Economic Development, 42(2),29-38
Ogbonna, G.N. & Appah, E.(2023). Effect of tax administration and revenue on economic growth in Nigeria. Research Journal of Finance and Accounting, 7(13), 41-92
Okifo, C., & Igbunu, K. (2015). The Digital Transformation of Payment Processing: Implications for Economic Growth. Journal of Electronic Finance, 18(3), 260-275.
Okon, A. (2015). Enhancing Tax Compliance through Electronic Payment Systems in Nigeria. International Journal of Financial Management, 22(2), 118-130.
Olaoye, C.O. & Ekundayo, A.T. (2018). Effects of tax audit on tax compliance in Ekiti State, Nigeria. European Journal of Accounting, Auditing and Finance Research, 6(5),13-19.
Oloyede, F. (2022). The part of electronic governance in tax revenue collection and remittance in Nigeria. Journal Administrasi Publik (Public Administration Journal), 12(1),124-136
Oloyede, R. (2022). Economic Stability and Electronic Payment Systems: A Comprehensive Study. Journal of Financial Technology, 25(1), 10-25.
Olu, D.C.O.P (2019). Effects of electronic taxation on taxation productivity in Nigeria (2008-2018), 6(12),1-16
Organization for Economic Co-operation and Development. (2017). Taxation and Government Revenue: A Comparative Study of High-Income Countries. OECD Economic Review, 72(4), 315-330.
Osrmeke, N., Nzekwu, D. & Ohare, R.O. (2020). The challenges affecting tax collection in Nigerian informal economy: Case study of Anambra State. Journal of Accounting and Taxation, 12(2),61-74
Rogers, E. M. (2003). Diffusion of Innovations (5th ed.). Free Press.
Saeed, I., & Sheikah, S. (2017). The Role of Taxation in Economic Growth: A Global Perspective. World Economic Journal, 55(4), 360-375.
Shelth, A. (1991). Consumer Behavior and Consumption Values: A Comprehensive Analysis. Journal of Consumer Psychology, 20(4), 460-475
Smith, J. (2018). The Impact of Internet Payment Systems on Tax Revenue Generation: A Comparative Analysis. Journal of Taxation and Revenue, 10(3), 45-63.
Tatnall, A. (1990). Theory of Innovation Translation. Technology Analysis & Strategic Management, 2(3), 207-218.
Theobald, F. (2021). Impact of tax administration towards government revenue in Tanzania case of Dar-es Salaam Region. Social Sciences Journal, 7(1),13-21
Venkatesh, V., & Bala, H. (2008). Technology Acceptance Model 3 and a Research Agenda on Interventions. Decision Sciences, 39(2), 273-315.
Vidal, J., et al. (2017). Contingency Theory and Organizational Performance: A Comparative Study. Journal of Organizational Behavior, 38(3), 330-345.
Wepukhulu, R. N. (2016). The Impact of Innovation Diffusion on Technological Advancement (Unpublished doctoral dissertation).
Published
2023-11-02
How to Cite
SIMON, A. A., IGNATIUS, I. U., & JOHNSONN., N. (2023). Internet Payment System and Personal Income Tax Payment in Nigeria. GPH-International Journal of Business Management, 6(10), 315-333. https://doi.org/10.5281/zenodo.10066468
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