Effect of International Public Sector Accounting Standard (IPSAS) Adoption on Tax Mobilization in Kwara State Internal Revenue Services (KWIRS)

Abstract

This study examined the effect of International Public Sector Accounting Standards (IPSAS) adoption on tax mobilization in Kwara State Internal Revenue Services (KWIRS). The focus was on five dimensions of IPSAS adoption: improved financial transparency and tax efficiency, strengthened accountability, enhanced comparability, staff capacity, and effective tax collection process. Primary data were collected and analyzed using multiple regression analysis to determine the effect of these factors on tax collection efficiency. The regression results revealed that improved financial transparency and tax efficiency (β = 0.724, t = 12.602, p < 0.01) and staff capacity (β = 0.114, t = 2.371, p < 0.05) had significant positive effects on tax mobilization in KWIRS. Enhanced comparability (β = 0.066, t = 1.603, p > 0.05), strengthened accountability (β = 0.058, t = 0.854, p > 0.05), and effective tax collection process (β = –0.043, t = –0.987, p > 0.05) were not statistically significant predictors of tax mobilization. The findings indicate that IPSAS adoption improves tax mobilization primarily through greater financial transparency and improved staff capacity, while accountability, comparability, and collection processes did not show significant effects within the study context. The study concludes that IPSAS adoption has a meaningful impact on tax mobilization in KWIRS when it is supported by transparency and staff training. It recommends strengthening staff capacity development programs and deepening the application of IPSAS transparency mechanisms to further enhance tax efficiency in Kwara State.