EFFECT OF ARTIFICIAL INTELLIGENCE ADOPTION ON TAX ADMINISTRATION IN NIGERIA: A STUDY OF FIRS
Abstract
This study was carried out to analyze the effect of artificial intelligence adoption on tax payment
in Nigeria: a study of FIRS. Despite the potential benefits of AI in improving efficiency and
accuracy in financial reporting, its integration into tax processes, with regard to the Federal
Inland Revenue Service (FIRS), may introduce complexities and challenges in tax assessment
and payment. However, there is a paucity of empirical research exploring the specific impacts of
AI adoption on tax payment practices within the Nigerian regulatory framework. Therefore, this
study aims to investigate the effects of AI adoption on tax payment in Nigeria, focusing on its
implementation within the framework of FIRS
The study adopted the survey research design. The population of the study consist of
major department in the FIRS office in Abuja. A total of 200 respondents was selected at random
in the selected major departments. The instrument used for the data collection was a
questionnaire and the statistical technique adopted for data analysis in this study was the simple
percentage
A total of 200 responses were validated from the survey. From the responses obtained
and analysed, the findings revealed in the study that that AI technologies improve the accuracy
of tax assessments by FIRS, AI technologies enhance the detection of tax fraud and evasion. AI
technologies' contribution to operational efficiency of FIRS which includes the fact that AI had
helped FIRS to process tax returns faster than manual methods, that the use of AI technologies
has reduced administrative costs for FIRS as well as AI-enabled systems had improve the
productivity of FIRS employees and that AI technologies have improved the overall
effectiveness of tax administration at FIRS, AI systems at FIRS help in minimizing human errors
in tax administration, AI enhances the decision-making capabilities of FIRS officials.
The study therefore recommended that that AI technologies should be well and
thoroughly integrated and AI technologies should be taught to the workers of FIRS
Keywords: Artificial Intelligence, Tax payment, FIRS
Full-Text Access Notice
In accordance with the NERD Policy on promoting peer-reviewed publication, public access to the full text of a project, thesis or dissertation is restricted for three years, allowing the author and supervisors sufficient time to pursue peer-reviewed publication.
During this period, researchers with legitimate academic or research purposes may request authorisation directly from the author to enable NERD to release the indexed full texts of the work using the form below.