TAX REGIME AND CHALLENGES OF SCALING UP TAX COLLECTION IN NIGERIAN INFORMAL ECONOMY
TAX REGIME AND CHALLENGES OF SCALING UP TAX COLLECTION IN NIGERIAN INFORMAL ECONOMY

Summary/Abstract: The vast and rapid dynamism in economic policies towards improved and speedy policy implementation aided by unrelenting technology capabilities have also transitioned into the tax administration economy. E-taxation is steadily taking the place of manual taxation. Electronic tax system expresses fast, convenient, cost efficient, organized and transparent taxation rather than tasking, time consuming and tax officials-tax payers’ corruption ridden operations of manual taxation. This article, engaging exploratory-qualitative research technique, examines multinational peculiarities of automated taxation to draw lessons from issues emanating from implementation, adoption and compliance. It further shed light on challenges of migrating e-tax collection to informal economies in Nigeria. From the extant review of cross-cultural literatures, it was revealed that developed and developing countries are gradually embracing and making constant efforts towards transitioning into a more established e-tax system. Countries like USA, China, Canada, Japan, Russia, Costa Rica, Colombia, and Kenya already joined in adopting e-taxation. The paper argued that inadequate database of taxable individuals; expensive internet infrastructure, cyberspace crime and limited awareness among tax payers are drawing back implementation of e-taxation in the Nigerian informal economies, and subsequently suggests practicable policy options.

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