Disruptive Technology and Tax Filing Process in Ondo State, Nigeria

Abstract

The inability of taxpayers to file their taxes effectively and flaws in the tax system have been 
perceived as the main reason behind the failure of the taxpayers to submit correct and accurate 
tax returns the relevant tax authorities in a manner prescribed by law and in accordance with the 
laid down administrative procedure. Prior studies have attributed these anomalies to the 
inefficient use of information technology and incompetent tax officials. Therefore, this study 
investigated the effect of disruptive technology on tax filing process in Nigeria. The study 
adopted a quasi-experimental research by employing survey research design. Primary data were 
collected through an online survey questionnaire. The population comprised 789 management 
and administrative staff of both FIRS (302) and ODIRS (487) in Ondo State offices. The sample 
was determined through Taro Yamane sampling approach. The results showed that the model is 
significant at 0.05 level and the coefficients are different from zero having a Wald chi2 (4) of 
13.75. AI, big data and cloud computing present positive effects while blockchain demonstrates
negative effect on tax filing process, but the results are only significant for AI, BCT and CCT. 
The study concluded that disruptive technology is capable of creating a new market for tax filing 
in Nigeria through tax automated. The study thereby recommended that for a proper tax filing 
process, the government should ensure that tax filing is handled by professionals and trained 
personnel to bring the best in them and also instill discipline in them.