DIGITAL TAX ADMINISTRATION AND TAX COMPLIANCE BEHAVIOUR: AN EVALUATION OF THE NIGERIA TAX ACT 2025

The study was motivated by the enactment of the Nigeria Tax Act (NTA) 2025, which among other things introduced the digitalization of the tax process. The study seeks to evaluate whether the digital measures such as electronic registration, online filing, digital payment systems, and taxpayer identification integration could improve voluntary compliance, reduce tax evasion, and strengthen taxpayer trust. The study was anchored on the Technology Acceptance Model (TAM), Deterrence Theory, and Fiscal Exchange Theory, which provided the theoretical framework for this study. A survey research design was adopted and data were collected through a structured questionnaire administered to registered taxpayers and other stakeholders; and analyzed using Structural Equation Model, evaluated with the use of factor loadings, Cronbach's alpha, composite reliability, and discriminant validity tests. The findings revealed that digital tax administration has a significant positive effect on tax compliance behaviour (β = 0.352, p < 0.05). The results further showed that perceived usefulness (β = 0.281, p < 0.05), perceived ease of use (β = 0.192, p < 0.05), and taxpayer trust (β = 0.237, p < 0.05) significantly and positively influence tax compliance behaviour. The study concludes that digital tax administration is an effective mechanism for improving tax compliance behaviour and enhancing the efficiency of tax administration in Nigeria. The study recommends that tax authorities strengthen digital infrastructure, improve taxpayer education and digital literacy, and simplified digital tax platforms in order to increase taxpayers' confidence in digital tax systems and further enhance voluntary tax compliance under the Nigeria Tax Act 2025