The Impact of Digitalization on Tax Compliance Among Individual Taxpayers in Lagos State.

Abstract:

The digital revolution has significantly transformed various aspect of society, including taxation systems. This study investigated the impact of digitalization on tax compliance among individual taxpayers in Lagos state. The study examines the impact of digitalization, such as electronic tax filing, electronic registration, electronic receipt of tax and digital tax clearance certificate, on tax compliance behavior. The study employed survey research and questionnaire. The population of the study is the entire individual tax payers of 3,625,472 in Lagos metropolis as it was stated in Lagos Internal Revenue Service 2022 report. 400 sample size is been determined for the study but only 310 were fully filled and returned resulting to 77.5% return rated. The Cronbach’s alpha reliability coefficients ranged from 0.837 – 0.936 which implies that all the concepts measured were all reliable. The rate were analyzed using descriptive and inferential statistics. The study concluded that digitalization has a positive impact on tax compliance in Lagos. The study recommended that to facilitate online information access, payment processing and return filing for tax payers, tax authorities ought to persist in developing their offerings. Keyword: Attitude, Digitalization, Fairness, Social norms, Tax compliance, Trust.