Perceptions of Nigerian Tax Officers and Stakeholders on the Adoption of Artificial Intelligence in Tax Risk Management.

Abstract

The Nigerian tax system faces substantial hurdles, including tax evasion, avoidance, and non-compliance, resulting in significant revenue losses. To combat these problems, this study examines the potential of adopting artificial intelligence (AI) in Nigerian tax risk management, centered on its ability to improve tax compliance, minimize risk, and enhance revenue collection. A quantitative approach was used, and survey research was compiled on the perceptions of tax officers, taxpayers, and tax consultants on the proposed adoption of AI in the tax industry. The results reveal that tax officers are generally confident in using AI-driven tax risk management tools, perceiving them as improving audit accuracy and increasing audit efficiency. However, concerns regarding adequate training and support were raised. Taxpayers demonstrated moderate awareness of AI-driven tax risk management, with mixed perceptions about its impact on tax compliance, privacy, transparency, and trust. Consultants were optimistic about AI-driven tax risk management's effectiveness, impact, and enhancement of the overall tax system but highlighted concerns about resource adequacy and training needs. The study's findings provide valuable insights into the perceptions of Nigerian tax officers, taxpayers, and tax consultants on adopting AI in tax risk management, contributing to developing effective strategies for improving tax compliance and revenue collection in Nigeria.