THE INFLUENCE OF ARTIFICIAL INTELLIGENCE (AI) AND MACHINE LEARNING ON TAX AUDITS IN NIGERIA

CHIMENKA Ezeribe, Dr. MURTADHO, Alao, ADENIYI, Sarafadeen Diran, Dr. AKEEM Adeshina Adedeji

Abstract

This study investigates the impact of digital technology adoption on tax audit effectiveness within the Federal Inland Revenue Service (FIRS) in Nigeria. A cross-sectional research design is employed, utilizing primary data collected through structured questionnaires distributed among FIRS staff. The sample size, determined using the Yamane formula, is 386, with respondents selected using stratified random sampling to ensure representation across various cadre levels. The data collected is analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that data analytics platforms, blockchain technology, and cloud computing significantly improve tax audits, contributing to enhanced audit accuracy, efficiency, and transparency. However, the study finds no significant impact of AI and machine learning on the effectiveness of tax audits in the Nigerian context.

Keywords: Taxation, Artificial intelligent, Economy, Tax Payer, Development