E-Tax Registration and Tax Payers’ Compliance in Lagos State, Nigeria

Abstract

Traditional tax registration processes involve tedious paperwork, lengthy wait times, and in- person visits to tax offices, causing a variety of difficulties for taxpayers and issues with compliance. This study investigated the effect of e-tax registration on taxpayers’ compliance in Lagos state, Nigeria. From a target population of 4,708 of staff of FIRS Lagos State office, who are responsible for the registration of taxpayers, a total of 354 respondents were purposively selected. The Krejcie and Morgan formula was used to determine sample size to represent the study's emphasis. Data were collected via primary sources by administering a structured questionnaire to a specific group of responders. The data were analysed using descriptive statistical methods and Structural Equation Modelling (SEM). The study revealed that knowledge about e-tax registration, the monetary cost of e-tax registration, and the perceived quality of the e-tax registration system, all of which are used as proxies for e-tax registration, positively and significantly affect compliance by taxpayers in Lagos state. The study's conclusion is that knowledge of e-tax registration monetary cost of on line tax registration system also perceived quality of online registration system for tax purpose are mechanisms that is effective to spur tax compliance among taxpayers in Lagos state. As a result, it is suggested that the government continue to provide a well-designed and user-friendly e-tax registration system in order to improve tax compliance among taxpayers in Lagos state, Nigeria, and thereby enhance tax income.