IMPACT OF DIGITALIZATION OF TAX ADMINISTRATION ON TAX MORALE OF SELF-EMPLOYED TAXPAYERS IN TARABA STATE

Abstract

Tax revenue mobilization and collection have remained one of the greatest challenges facing
tax administrators in all the states in Nigeria, including Taraba State. Researches have indicated
that low taxpayer morale has contributed substantially to the poor tax performance in Nigeria.
As part of the strategy to improve tax morale, many tax administrators have digitalized their
tax administration system. This study examined the impact of digitalization of tax
administration on the tax morale of self-employed taxpayers in Taraba State. The study was
conducted using cross-sectional data collected with the instrument of questionnaires that were
administered on 327 self-employed taxpayers, drawn from the three senatorial zones of Taraba
State. The data of the study were subjected to multiple regression analysis. The results of the
study showed that the digitalization of taxpayer registration, tax filing and issuance of tax
clearance certificate have positive and significant impact on the tax morale of self-employed
taxpayers; the digitalization of notification of tax assessment has a negative and significant
impact on the tax morale of self-employed taxpayers, while the digitalization of tax collection
has no significant impact on the tax morale of self-employed taxpayers. These findings
therefore suggest that the tax morale of self-employed taxpayers in Taraba State can be
improved upon by digitalizing taxpayer registration, tax filing and issuance of tax clearance
certificate. Ultimately, this will lead to an improvement in the tax revenue of the State.