Determinants of tax administration efficiency: A study of Bauchi State, Nigeria

This study examines the determinants of tax administration efficiency. Tax is a medium which countries across the globe depend upon so as to carry out the mandate of their citizens. Unfortunately, the Nigerian tax system is faced with challenges, such as loss of revenue through high level of tax defaulters from both the legislative arm of the government and public institutions, corruption and financial irregularities and limited government administrative capability. Tax, as a percentage of the Gross Domestic Product (GDP), contributes only seven percent to the Nigerian economy which is below the minimum
benchmark of 15% of low income African countries. Therefore, this study examines the influence of autonomy of the State Board of Internal Revenue (SBIR), use of information and communications technology, public enlightenment, strong auditing practice, motivation and
incentives and perceived corruption on tax administration efficiency in Nigeria. A mixed research design was used, and data was collected through survey and interview. A total of 124 questionnaires were collected out of 144 questionnaires that were administered. The data was
analysed to answer the research questions. The study revealed that there is a significant relationship between tax administration efficiency and: autonomy of board of internal revenue, information and communications technology and public enlightenment. The study further revealed that there is no significant relationship between tax administration efficiency and strong audit practice and motivation and incentives and perceived corruption. The
qualitative findings of this study indicate that reformation and restructuring of the tax system and granting of autonomy can help to boost revenue generation and administration efficiency. The qualitative findings further reveal that autonomy, public enlightenment and use of information and communications technology are some of the determinants of tax administration efficiency. Given the findings from the study, it is recommended that
government should put an effective measure in place to collect taxes from tax defaulters across the different groups of the economy.