THE APPLICATION OF STRUCTURAL EQUATION MODELING ON THE USAGE OF ONLINE TAX SYSTEM AMONG SELF-EMPLOYED TAXPAYERS IN NIGERIA

Mustapha BOJUWON, Abdul-Ganiyy A. AGBAJE, Mobolaji Kafayat ABIDOYE

Abstract

Online tax system refers to the use of information technology in the filing and payment of tax returns. This study examined the causal relationship between perceived ease of use, perceived security, and perceived usefulness on the usage of online tax system among the self-employed taxpayers in Nigeria. A total of 390 questionnaires were administered and analyzed using structural equation modeling (SEM) to determine the variables relationship in the model. The result support the direct positive relationship between perceived ease of use and perceived security, explain the self-employed taxpayers’ usage of the online tax system with a statistically significant value on perceived usefulness. The paper also reveals that the perceived usefulness has a mediating effect on the relationship between perceived ease of use and perceived security towards the usage of the online tax system. The findings show the goodness fit indices are adequate with the model fit indices showing the chi-square value of 260.067, DF=98, p-value =0.000, Normed chi-square CMINDF = 2.654, CFI = 0.961, NFI = .939, TLI = 0.952 and RMSEA = .065. This study contributes to the on going effort to enhance the effective usage of the online tax system by the tax authority through the self-employed taxpayers. This may lead to the increase in revenue generated by the government through its effective implementation.

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