IMPACT OF ELECTRONIC PAYMENT SYSTEM ON TAX EVASION IN NIGERIA (2015-2021)

Abstract

This study investigated the impact of electronic payment system on tax evasion in Nigeria. The specific objectives of the study were to examine the impact of mobile banking payment (MBP); web-based transfer payment (WBP); automated teller machine payment (ATMP) and point of sales payment (POSP) on tax evasion in Nigeria. The study adopted Ex-post facto research design which enabled secondary data that covered the period of 7years (2015)-2021) to be collected from the reports and accounts of Federal Inland Revenue Service, Central Bank of Nigeria and National Bureau of Statistics. The study made use of descriptive statistics in order to determine the characteristics of the research variables. Ordinary least square multiple regression model was employed to test the research hypotheses at 0.05 level of significance. Results of the regression analyses revealed that MBP, ATMP and POSP had negative and significant impact on tax evasion in Nigeria. However, the study also discovered that WBP had negative and no significant impact on tax evasion. The implication of the findings is that any increase in the use of MBP, ATMP and POSP in payment of taxes leads to reduction in tax evasion in Nigeria. The study concluded that electronic payment systems have significantly influenced the reduction of tax evasion in Nigeria. The study therefore recommended that government should address the challenges of unreliable power supply and poor internet network to reduce the motives that could discourage taxpayers from using the electronic payment system.