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Author(s): Akadi Omolara Victoria, Olaoye Clement Olatunji.

Volume/Issue: Volume 7 , Issue 4 (2024)

Abstract:

The introduction of Tax Identification Number (TIN) is to ensure strict compliance of tax laws and stimulate increase in revenue generation. In a bid to assess the effectiveness of TIN in southwest region of Nigeria, this study investigated the effect of taxpayers’ identification number on revenue generation. Secondary data was used and it was captured from the State Board of Internal Revenue and statistical year book of federal bureau of statistics for 20 years, spanning from 2003 to 2022. Purposive sampling technique was used to select all the 6 states in the southwest of Nigeria. Descriptively, mean, standard deviation, minimum value and maximum value were used to describe the variables of the study. This was followed by correlation matrix, paired sampled t-test, panel regression which covers pooled Ordinary Least Square (OLS), fixed effect estimation, random effect estimation. It was discovered that tax identification number and total expenditure have a positive and significant effect on internally generated revenue to the tune of 0.5856(p=0.000<0.05) for tax identification number and 0.4279(p=0.001<0.05) for total expenditure. It was established that the adoption of taxpayer identification number engendered rapid improvement in the capacity of the state to generate revenue internally. Thus, the government, through the tax authorities, should work out modalities such tax education, strict penalties, and simple and transparent tax procedures to ensure that all taxable entity collect identification number which might, in turn, stimulate increase in revenue generation.

Keywords:

Tax, Taxpayer, Taxpayer Identification Number, and Revenue Generation.

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