Online Tax Filing and Tax Compliance in Nigeria: Evidence from FIRS Headquarters, Abuja

This study examines the effect of online filing of tax returns on tax compliance in Nigeria using evidence from the Federal Inland Revenue Service (FIRS) Headquarters in Abuja. Adopting a cross-sectional survey design, primary data were collected from 83 FIRS staff and 72 Small and Medium Enterprises (SMEs). The study employs Ordinary Least Squares (OLS) multiple regression to estimate the relationship between components of the online tax system—online registration (ORT), online filing of tax returns (OFTR), and online payment (OTP)—and tax compliance (TC). Results indicate that OFTR exerts a positive and statistically significant effect on TC among FIRS respondents (β = 0.249, p < 0.05), while its effect is statistically insignificant among SMEs (p = 0.098). The overall model explains approximately 79% of the variation in tax compliance (R² ≈ 0.793). Diagnostic tests reveal acceptable autocorrelation but high multicollinearity among predictors. The divergence between institutional and taxpayer perspectives suggests constraints on usability, digital literacy, and infrastructure. The study recommends targeted taxpayer education, user-centered platform design, and ICT investments to enhance compliance outcomes.

Online Tax Filing, Tax Compliance, E-Tax System

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