Concept of Automated Income Tax in Edo State Nigeria: Learning from the American System

Nigeria's tax framework, as defined by Section 24(f) of the Constitution, mandates that all citizens fulfill their tax obligations. This legal foundation empowers various government levels to collect taxes, including income taxes from individuals and corporations. However, the persistent issue of tax evasion remains a significant obstacle to revenue generation in Nigeria. This problem isn't confined to a specific region, as Edo State, too, grapples with income tax evasion, detrimentally impacting its revenues. Despite legislative and judicial efforts, tax evasion prevails. In response, the Edo State Government introduced the Edo Revenue Automate System (ERAS), a computerized solution aimed at streamlining individual income tax administration and curbing evasion. Concerning this, the study tends to adopt a doctrinal method of study in ascertaining the legal issues of adopting automated income tax in Edo State, drawing inspiration from the United States, where a well-established computerized income tax system operates under the backing of enacted laws. The study therefore found that there are incidences of tax evasion in Edo state, that though the adoption of an automated income tax system could aid in curtailing the incidence of tax evasion in the State, there are legal and socio-economic shortcomings that could hamper the Edo State automated income tax system. In this regard, this study recommends and concludes with proposals for enhancing the effectiveness of the computerized individual income tax system in Edo State. The study further emphasizes the need for a strong legal framework to support technology-driven tax systems and the importance of adopting best practices from countries like the United States to mitigate tax evasion. Keywords: Automated, Legal, Income, Tax, Edo State, America