Tax authorities globally, including in Nigeria, are shifting towards automated and digital audit processes powered by advanced algorithms and data-matching technologies. The move towards digital audits promises greater efficiency, broader coverage, and faster detection of discrepancies in tax filings.
However, the rise of automated tax scrutiny also raises significant concerns about taxpayer rights. When algorithms flag returns for review or calculate potential liabilities without human intervention, taxpayers may find it harder to understand why they have been singled out, to challenge the basis of an assessment, or to receive a fair hearing.
Key areas of concern include the transparency of audit selection criteria, the ability of taxpayers to appeal automated decisions, data privacy safeguards, and the risk of errors propagating at scale without adequate human oversight. As digital tax administration evolves, the balance between enforcement efficiency and the protection of fundamental taxpayer rights remains a critical issue for tax policy and practice in Nigeria.
Further details on the scope of digital audits, the legal framework governing automated tax reviews, and practical steps for taxpayers facing digital scrutiny were not available at the time of publication.