THE IMPLICATION OF DIGITAL TAXATION ON TAX COMPLIANCE AND TAX ADMINSTRATION

ABSTRACT

The study examined the implication of digital taxation on tax compliance and tax administration. To achieve the purpose of this study, four research questions were raised and answered. Hypothesis were formulated in lines with the specific objectives and are as follows: There is no significant relationship between digital taxation and behaviour of businesses and individual in meeting their tax obligations, There is no significant relationship between the effectiveness of tax administration mechanisms and adapting to the challenges posed by the digital economy, There is no significant relationship between the strategies taken and the potential loopholes associated with digital economy. There is no significant relationship between obstacles facing tax administration and adapting to digital taxation. The researcher adopted the survey strategy and use structured questionnaire to collect data. The sample size for the study was made up of sixty (60) respondents. Regression analysis was used for the analysis of the data with the aid of Statistical Package for Social Sciences version 22(SPSS). The study recommended among others that The government of Nigeria should consider developing tax policies that facilitate the taxation of e-transactions, enhance tax education, and incorporate the taxation of e-transactions into existing tax laws and ensure that policy development and implementation is designed to allow for the changing environment, while being sufficiently clear to provide the certainty and clarity that facilitates sustainable, longterm economic growth.