Artificial Intelligent (AI) Driven Tools, Mechanisms Behind Fast Growth In Digital Econmy: Taxation Challenges In Nigeria
- IJLLR Journal
- Nov 11
- 2 min read
Dr. Ngozi Asomadu, Lecturer, Department of International Law, Obafemi Awolowo University Ile-Ife Osun State Nigeria
ABSTRACT
The advancement in technology and its adaptation brought about fundamental changes in the face of the digital economy and financial market. This includes the speed of execution of financial transactions, and opportunities for attracting new customers. The growth of digital economy revealed the flaws in traditional market. Due to convenience, most people prefer to engage in digital market rather than traditional market system. However, the growing role of digital assets exposed a lot of issues that have arisen and there became need for its regulation, following the rules of the open free market on the one hand, and protecting both entire financial systems and individual users from possible risks arising from the development of new financial technologies. The inability of Nigerian government to come up with precise law that would regulate the digital economy posed as a big challenge as it exposed the nation to loss of revenue and tax avoidance. This paper examined the challenges or inability to have a concise legal framework on digital economy. The methodology adopted in this work is doctrinal wherein primary and secondary sources of material were utilized. Upon findings that there is now an improved law on taxation in Nigeria which shelters some digital services, however, the study revealed that the improvement made though encouraging was not sufficient to cover the existing and already identified challenges. It therefore recommended adoption of blockchain model and Application Programming Interface (API)-based data exchange mechanism which would aid the tax authorities to obtain actual information about transaction values, service types, and user identities. This will enable the tax authorities have the data of all the transactions made whether the information was supplied to them by the online-vendors or not.
Keywords: Digital economy, finetech, Artificial intelligence, and Regulatory tax law
