THE IMPACT OF TAX SOFTWARE ON TAX COMPLIANCE

This study evaluates the impact of tax software on tax compliance in Nigeria, focusing on factors influencing adoption and the relationship between tax software usage and compliance rates. A sample of 200 respondents, comprising individual taxpayers and small and medium-sized enterprises (SMEs), was surveyed using a structured questionnaire. The study employed a quantitative research approach, with data analyzed using descriptive statistics, regression analysis, and statistical software such as E-Views 10 and SPSS 22.0. Findings reveal that ease of use, time-saving benefits, financial data security, cost, and availability of support services significantly influence tax software adoption. Additionally, results indicate a strong positive relationship between tax software usage and tax compliance, with taxpayers expressing high satisfaction levels. Based on these findings, the study recommends increasing digital literacy programs, enhancing security features and support services, reducing software costs through subsidies, and implementing policies to mandate digital tax solutions. These measures are essential for fostering a more efficient, transparent, and technology-driven tax administration system in Nigeria