DETERMINANTS OF E-TAX FILING ADOPTION OF SMALL AND MEDIUM SCALE ENTERPRISES IN BAUCHI AND YOBE STATES, NIGERIA

Abstract

Electronic tax filing (e-filing) is an electronic platform for taxpayers to file their taxes through online means straight
to the tax authority. The main purpose of this study is to investigate the determinants of the intention of the
taxpayers to adopt e-tax filing in Nigeria, based on the Technology Readiness Index theory. The study adopted a
cross sectional survey design using a structured questionnaire with a population of 24,598 and a sample size of 379
using Krejcie and Morgan (1970) formula. Stratified sampling technique is adopted in order to eliminate biasness
and the reliability of the instrument was tested using Cronbach’s alpha test. The unit of inquiry are the small-scale
and medium sized enterprises (SMEs) owners and managers within Bauchi and Yobe State, Nigeria. The collected
data was analysed with SPSS, version 34. The findings disclosed that technology readiness index (TRI)
innovativeness has no direct effect with the intention to adopt e-tax filing. However, the result indicated that
optimism, discomfort and insecurity are the statistically significant factors influencing the readiness of taxpayers to
adopt e-tax in Bauchi and Yobe. The study recommends that SMEs operators and practitioners should prioritize
inculcation of e-tax filing and other relevant technologically inclined procedure into the running of their business.