TAX EVASION AND AVOIDANCE ERADICATION: THE ROLE AND EFFECT OF ACCOUNTING INFORMATION SYSTEM

Abstract

The benefits of using Accounting Information Systems as tools in eradicating the problem of tax evasion and avoidance that is rooted in Nigeria is what this study analysed. This study was carried out in Oyo State, Nigeria. 66 officials of the State Internal Revenue Service were purposively selected. Questionnaire was used as a data collection instrument to administered questions related to the study objective and hypothesis. Descriptive statistics was used to analyse the objective of the research while the hypothesis was tested with one sample t-test. From the result, it was discovered that the most promising role of AIS as a tool for tax evasion and avoidance is that it will keep accurate electronic records of tax payer in order to moderate tax evasion and avoidance which may be access anytime and anywhere in Nigeria. The t-test result revealed the effect of AIS on tax evasion and avoidance and the result was positive and significant which implies that AIS plays a significant role in tax evasion and avoidance. Recommendation was made to the Nigeria Government and other policy maker that Accounting Information Systems should be acquired and use as prominent tools across the country in eradicating tax evasion and avoidance.