The Federal Inland Revenue Service (FIRS) in Nigeria is leveraging technology to enhance voluntary tax compliance by making tax processes more efficient, transparent, and user-friendly. Here are some key initiatives:
1. Automation & Digital Tax Platforms
- TaxPro-Max: FIRS’s integrated tax administration system simplifies filing, payment, and compliance for taxpayers.
- e-Filing & e-Payment: Reduces manual processes, minimizing errors and delays.
2. Data Analytics & AI for Compliance
- AI-driven risk assessment identifies tax evasion patterns.
- Big data cross-checks taxpayer records with third-party sources (banks, property registries, etc.).
3. Mobile & USSD Solutions
- USSD shortcodes (e.g., *966#) enable quick tax payments, especially for SMEs.
- Mobile apps provide real-time tax updates and reminders.
4. Blockchain & Secure Transactions
- Pilot use of blockchain to improve transparency in tax records and reduce fraud.
5. Taxpayer Education & Engagement
- Social media campaigns and webinars educate taxpayers on compliance.
- Automated reminders for deadlines reduce penalties for late filers.
6. Collaboration with FinTech & Banks
- APIs integrate tax payments with banking platforms for seamless transactions.
- Real-Time Gross Settlement (RTGS) ensures instant payment confirmations.
7. Whistleblower & Fraud Detection
- Digital reporting portals allow anonymous tips on tax evasion.
- AI audits flag discrepancies in filings.
Impact:
- Increased compliance rates due to ease of payment.
- Reduced tax evasion through tech-driven enforcement.
- Improved trust in the tax system via transparency.
By adopting these technologies, FIRS aims to boost revenue collection while making compliance simpler and more accessible for individuals and businesses.
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