Effect of Digital Tax Reforms on Tax Administrative Efficiency of the Nigerian Federal Inland Revenue Service
Tax administration has long been hindered by inefficiencies associated with manual processes. This study examines the effect of Digital Tax Reforms (such as the Taxpayer Identification Number, the Integrated Tax Administration System, and Standard Integrated Government Tax Administration System) on tax administration in Nigeria, with a specific focus on the Federal Inland Revenue Service (FIRS). A quantitative survey research design was adopted to collect primary data through structured questionnaires. The population comprises 9,201 FIRS staff across departments such as Revenue Collection, IT Support, and Customer Service. Using Taro Yamane’s formula, a sample size of 383 staff members was selected through stratified sampling. Structured questionnaires were used, featuring Likert-scale items to measure the perceived effectiveness of TIN, ITAS, and SIGTAS. Content validity was established through expert review, and Cronbach’s Alpha was used to test reliability, with acceptable values above 0.7. The study concluded that the Taxpayer Identification Number and Integrated Tax Administration System improved tax administration by streamlining identification, automating operations, and enhancing payment processes. However, the Standard Integrated Government Tax Administration System was ineffective, indicating the need for reassessment. The study recommends that: FIRS should also collaborate with the Joint Tax Board and the Federal Ministry of Finance to ensure that the TIN becomes a universally adopted and functional tool across all government agencies. FIRS should work in collaboration with the National Information Technology Development Agency to implement best-in-class IT standards, while also engaging the Office of the Accountant General of the Federation and banking institutions to enable real-time integration for payment tracking and reporting. FIRS, in collaboration with NITDA and the Ministry of Finance, should explore the adoption of newer, more adaptable digital solutions that align with the evolving demands of tax administration in Nigeria since SIGTAS was found to be inadequate or obsolete.