EFFECTIVE TAX COLLECTION IN A DIGITAL ECONOMY THE (CASE STUDY OF FEDERAL INLAND REVENUE SERVICES, THE ROLE OF FIRS) BY USMAN MAMMAN 2201023010 A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTANCY, SCHOOL OF BUSINESS ADMINISTRATION

Abstract This study was conducted to assess the effective tax collection in a digital economy: case study on large tax payers in Abuja. The researcher uses descriptive research design to solve the study problem .data that where gathered was analysed using descriptive statistical method and data was analysed in concurrent manner. The study has identified benefits related to the use of ICT in tax collection from the perspective of tax administrators and taxpayers. The study has used both primary and secondary sources of data. Using random sampling method 211 large taxpayers and 98 civil servants were selected from total population of 1569, among this population 1146 were large taxpayers, 453 were FIRS Staffs, and 120 were collected from taxpayers and 60 from FIRS Staffs with rate of 58%. This study found that the use of ICT in tax collection has improved transparency; taxpayers pay into the designated banks online and obtain a receipt immediately. FIRS’s software monitors the entire process and traces payments to ensure accuracy; the banks then transfer the money to the Central Bank. The e-tax payment system was found to give the FIRS a real time, almost minute-by-minute. The findings revealed that ICT also has the potential to improve interactions between the tax authority and taxpayers, fostering transparency and accountability in the administration of company income tax collections. The results obtained indicated that using ICT facilitates the CIT collection process and predicted potential contribution to the effectiveness and efficiency in CIT collection in terms of the skills, opportunities and resources required. Furthermore, the study-identified challenges that hinder the application of ICT in tax collection are inadequacy of ICT infrastructure, lack of leadership Commitment, inefficient training facilities, poor network connection and lack of awareness. The study postulates that the adoption of ICT in CIT collection is determined by perceived usefulness and perceived ease of use, attitude, intention to use and accessibility in terms of affordability and infrastructure.