THE IMPACT OF CLOUD COMPUTING PLATFORMS ON TAX AUDIT 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. The research also highlights the crucial role of cybersecurity solutions in protecting taxpayer data and ensuring the integrity of the tax audit process. These findings are in line with global trends where technology-driven solutions have been pivotal in transforming tax administration. This study concludes that the adoption of advanced technologies in tax audits holds substantial promise for improving the Nigerian tax system, though challenges such as infrastructure limitations and resistance to change must be addressed. Recommendations include further investment in training tax auditors, enhancing digital infrastructure, and fostering greater collaboration between government agencies and technology providers.

Keywords: Cloud computation, Technology, Cyber security, Artificial intelligent, tax payer, government revenue