Effectiveness of Digital Tax Reforms on Administrative Efficiency of The Nigerian Federal Inland Revenue Service: With Tax-Promax Inclusion

This paper examined the effect of digital tax reforms on the operational performance of the Nigerian Federal Inland Revenue Service in respect to Taxpayer Identification Number, Integrated Tax Administration System, Standard Integrated Government Tax Administration System and Tax-Pro-Max Solution. The research used a quantitative design. The study used a survey method design and primary data to evaluate how effective digital tools are in improving administrative efficiency. Stratified sampling was used in the research. The data collection plan involved closed ended questionnaires. Regression models and other analytical methods were used. Based on the findings, it is evident that the Taxpayer Identification, Integrated Tax Administration System as well as the Tax-Pro-Max Solution are very effective in improving the efficiency of the Nigerian FIRS with regard to tax management. On the contrary, the result revealed that the Standard Integrated Government Tax Administration System does not have significant impact on Tax Administrative Efficiency within the Nigerian FIRS. The analysis has concluded that the use of TIN, the Integrated Tax Administration System and Tax-Pro-Max has proved to be an effective way of automating and consolidating activities relating to the collection of tax. The research however concluded that the Standard Integrated Government Tax Administration System had no significant results to Tax Administrative Efficiency. It is recommended that FIRS should focus more on spreading the TIN system to cover all tax paying areas of Nigeria. The FIRS should continually invested in ITAS through improving the system, providing ease of access to users and increasing training of the staff. FIRS should re-evaluate implemented SIGTAS into its operations. It should be thoroughly assessed in terms of its functionality and areas where it can be improved should be determined. The FIRS ought to spread Tax-Pro-Max to additional tax-paying companies and individuals and make it the standard way of paying taxes and making transfers.