Legal assessment of electronic tax payment systems: Nigeria, Kenya and tanzania and in perspectives

Abstract

Electronic Tax Payment system has spread from developed to developing countries. Nigeria has made steps in adopting Electronic  Taxation due to the necessity to establish a more efficient taxation system that would meet the current demand of contemporary  taxation. Electronic Taxation is a mechanism by which taxes are calculated and administered in electronic media. It involves the use of  Information Communication Technology to run the taxation process of a country. This paper aims at assessing the nature of E-tax  payment systems, evaluating the prospects and challenges of electronic tax payments in Nigeria and examining its legal basis as well as  the progress recorded so far. An analysis was also made on the practice of E-tax payment systems in Kenya and Tanzania with the view of  eliciting lessons from there. It was found that some of the major Challenges affecting e-tax payments includes but are not limited to  the following; that the level of computer literacy in these countries is low as most taxpayer shy away from the system causing them to  stick more to the manual system of tax payment. Also, the unsteady and unreliable state of internet connection can lead to frustration of  taxpayer. Finally, there are no legislative frameworks that fully provide for the process and procedures of electronic tax payments in  Nigeria, Kenya and Tanzania. Thus, the paper recommends among others, that there should be an enactment regulating the operation of  electronic tax payments in Nigeria, as was done for the manual system, provision should be made for increase in awareness of  taxpayers stressing on the importance of being a computer literate