ELECTRONIC TAX SYSTEM AND TAX COMPLIANCE (CASE STUDY: SMALL AND MEDIUM SCALE ENTERPRISES IN EDO STATE)

The study employed a survey research design and used self-administered questionnaires. A sampling design of 100 respondents was selected which composed of 20 wielding shop owners, 20 tailoring shop owners, 20 transportation company, 20 shoe making shop owners and 20 technicians in Edo State. Findings from the study show that electronic tax system has improved tax compliance as it is easy for tax payers to assess their tax obligation accurately and enable them file their returns on time. On other hand, the new system has also helped ease the work of EIRS staff and to a small extent led to an increase in tax collection in Edo State. Findings from the study also show that the attitude of tax payers and that of EIRS staff towards the use of e-tax is positive as a considerable number viewed the use of the system as being good. Findings from the study further indicate that the new system has increased costs on the tax payers side. Findings from the study also show that the current e-tax servers are overwhelmed by the number of users hence they are so slow. Findings from the study further show that the electronic tax filing system has the potential of increasing tax compliance and revenue collection in EIRS but a lot has to be done to avert the obstacles that may not make it possible.