INFORMATION TECHNOLOGY (IT) AND ENHANCING THE EFFICIENCY OF TAX ADMINISTRATION OF OSUN STATE INTERNAL REVENUE SERVICE IN NIGERIA

Abstract

This study examined the extent to which Information Technology enhances the efficiency of tax administration of Osun State Internal Revenue Service (OSIRS) in Nigeria. The research explored how information technology (IT) enhances tax collection, promotes voluntary compliance, and curbs tax evasion. Using a survey research design, primary data were collected from 154 respondents through structured questionnaires from the study’s population of 250 registered OSIRS workers. The data collected were analyzed using descriptive statistics comparing mean, standard deviation, and frequency distribution. The findings discovered that the application of IT enhanced the tax administration efficiency of the Osun State Internal Revenue Service by automating processes, reducing administrative delays, and enhancing transparency. The findings also revealed that IT-based tax administration could curb tax evasion and lead to an increase in the tax base of Osun State in Nigeria as the respondents strongly affirmed that IT-based tax administration facilitates better tax monitoring, increases compliance, and reduces tax evasion opportunities. However, challenges such as regulatory inconsistencies and the exclusion of informal sector operators from digital tax frameworks remain significant concerns. The study recommended continuous investment in IT infrastructure, regulatory stability, expansion of digital tax administration to the informal sector, and periodic training for tax officials. This investigation will further strengthen revenue collection, improve government fiscal capacity on revenue generation, and enhance overall tax compliance not only in Osun State but also in Nigeria at large. The study contributed to existing literature by providing empirical insights into the role of IT in sub-national tax administration, and offering practical recommendations for optimizing tax processes through technological innovations.