Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between digitalization of tax administration and voluntary tax compliance has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Ogun State where operating conditions differ markedly from more developed markets.

Ogun State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While digitalization of tax administration is widely discussed in policy and industry circles, empirical evidence on its actual effect on voluntary tax compliance within Ogun State remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to digitalization of tax administration are helping or hindering voluntary tax compliance — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Digitalization of Tax Administration on voluntary tax compliance in Ogun State.
2. To assess the extent to which digitalization of tax administration influences voluntary tax compliance within the study area.
3. To identify the challenges associated with digitalization of tax administration in relation to voluntary tax compliance.
4. To recommend strategies for optimizing digitalization of tax administration in order to improve voluntary tax compliance.

1.4 Research Questions

1. What is the effect of digitalization of tax administration on voluntary tax compliance in Ogun State?
2. To what extent does digitalization of tax administration influence voluntary tax compliance within the study area?
3. What challenges are associated with digitalization of tax administration in relation to voluntary tax compliance?
4. What strategies can be adopted to optimize digitalization of tax administration in order to improve voluntary tax compliance?

1.5 Significance of the Study

Beyond its academic contribution to the field of accounting, this study has practical value for management teams within Ogun State seeking to understand how digitalization of tax administration translates into measurable outcomes around voluntary tax compliance. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

In terms of scope, this study confines itself to Ogun State, focusing specifically on how digitalization of tax administration relates to voluntary tax compliance within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.