DISRUPTIVE TECHNOLOGY AND VALUE-ADDED TAX IN SELECTED TELECOMMUNICATION COMPANY PROVIDER NIGERIA

F. F. Adegbie (PhD), A. T. Ajibade (PhD), O. P. Ajagun

Abstract


For the government to provide basic amenities, protect the lives and property of the citizens and create the enabling environment for individual and corporate organization to strive, there is need to mobilize revenue through taxation of the citizens and corporate organization. The increase in new technologies globally is disrupting competition in a number of traditional markets. Disruptive technologies such as WhatsApp, Skype and Facebook have changed the way in which telecommunication services have operated traditionally. However, the Nigerian tax system has not made provision on taxing these platforms, resulting in lots of tax base attrition. Empirical studies have attempted to examine the effectiveness of innovation on existing tax laws in addressing tax revenue transactions complexities. The study examined the effect of disruptive technology on tax revenue in Nigeria using selected telecommunication network providers in Nigeria. This study adopted ex post facto research design. Data were obtained from individual telecommunication network provider and the Federal Inland Revenue Services for the period between 2001 through 2018, amounting to sixty seven (67) observations. Data were exposed to the scrutiny of the appropriate regulatory agencies such as the Central Bank of Nigeria and Financial Reporting Council of Nigeria for validity and reliability. Pre-estimation tests were conducted using Pearson correlation and stationarity tests. The post-estimation tests included linearity, Heteroskedasticity, Breusch-Godfrey serial Correlation Lagrangian Multiplier and stability test. Data were analyzed using both descriptive and inferential statistics. The result showed that disruptive technology had a positive and significant effect on value added tax of telecommunication network providers in Nigeria (Adj.R2 = 0.616, F (5, 14) = 22.015, p<0.00). The study concluded that disruptive technology had significantly influenced and changes in the value added tax of the telecommunication network provider in Nigeria. The study therefore recommended that the Nigerian Communications Commission and FIRS should put in place measures that will enforce strict adherence to principles and procedures of laid down standards and also facilitate the movement of customers from one network provider to another in place.


Keywords


Disruptive Technology, tax revenue, Nigerian Communications Commission, Horizontal integration, Mobile Number Portability

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