THE NEXUS BETWEEN TAX AUDIT AND TAX COMPLIANCE IN NIGERIA
Abstract
The study attempted to determine the nexus between tax audit and compliance in Nigeria. The study adopted the survey method on the accessible population, which comprises of individual taxpayers and tax officials of the RED zone offices of the Federal Inland Revenue Service in the South-South region. Using the purposive sampling method, three hundred (300) respondents were selected as the study sample size, while the questionnaire was used as the data collection instrument. In analyzing, the Pearson product moment correlation techniques were applied. Based on the analyses conducted, the study found that the relationship between tax audit and timely filing of tax returns as well as prompt payment of the tax liabilities is significant. The study further found a positive correlation between tax audit and timely filing of tax returns as well as prompt payment of the tax liabilities with correlation values of 0.830 and 0.755. It was then recommended that tax authorities should increase the frequency and coverage of tax audits to ensure a higher probability of detection for non-compliance and also implementing transparent and equitable audit processes that will enhance taxpayer confidence and compliance. The study concluded that the nexus between tax audit and tax compliance in Nigeria is significant and positive
Keywords:
Tax audit, tax compliance, timely return filing, Prompt tax liability paymentDownloads
Published
DOI:
https://doi.org/10.5281/zenodo.15175419Issue
Section
How to Cite
License
Copyright (c) 2025 Nwagu Iruka Okoronkwo (Ph. D), Iwene Samuel Ojo (Ph. D) , Akor James Eleche (Ph. D)
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Abiola, J., & Asiweh, M. (2016). Impact of tax administration on government revenue in a developing economy: A case study of Nigeria. International Journal of Business and Social Science, 3(8), 99-113.
Adedeji, T., & Oboh, C. (2016). Impact of tax audit and investigation on tax compliance in Nigeria. Journal of Accounting and Taxation, 8(6), 61-70.
Adediran, S. A., Alade, S.O. & Oshode, A. A. (2013). The impact of tax audit and investigation on revenue generation in Nigeria. European Journal of Business and Management, 5, 171-175.
Agumas, A. L. (2016). Impact of tax audit on improving taxpayers’ compliance: Empirical evidence from Ethiopian revenue authority at federal level. International Journal of Accounting Research, 2, 1-19.
Akinyemi, B., & Salami, A. (2020). The role of tax education programs in enhancing tax compliance in Nigeria. Journal of Taxation and Regulatory Affairs, 5(3), 180-195.
Alemu, A. A. (2020). Impact of tax audit on tax compliance with reference to category “A” taxpayers: A case study in Hawassa City Administration, south nations, nationalities and peoples’ regional state of Ethiopia. Journal of Modern Accounting and Auditing, 16(6), 278-290
Allingham, M. G., & Sandmo, A. (1972). Income tax evasion: A theoretical analysis. Journal of Public Economics, 1(3-4), 323-338.
Ayuba, A., Saad, N., & Ariffin, Z. Z. (2016). The impact of tax audit on tax compliance in Nigeria. International Journal of Economics and Finance, 8(3), 45-54.
Badara, M.S. (2012) the Effect of Tax Audit on Tax Compliance in Nigeria (A Study of Bauchi State Board of Internal Revenue). Research Journal of Finance and Accounting, 3, 74-80
Des-Wosu, C., Edori, D. S., & Chuku, U. (2022). The Role of Tax Audit on Tax Revenue: Evidence from Rivers and Bayelsa State Internal Revenue Services and Federal Inland Revenue Service. Journal of Accounting Information and Innovation, 8(12), 12–20.
Devos, K. (2014). Factors influencing individual taxpayer compliance behavior. Springer.
Edori, D. S (2023). Electronic Tax Services and the Ease of Tax Compliance in Nigeria. Journal of Accounting and Financial Management, 9(9), 212–228
Edori, D. S. (2022). Tax revenue and Nigeria’s economic growth. Journal of Accounting and Financial Management, 8(4), 173-186
Edori, D. S., Des-Wosu, C. & Chukwu, U. (2022). The influence of tax revenue on economic development in Nigeria. European Journal of Accounting, Finance and Investment, 8(10), 1-11
Edori, D. S., Edori, I. S. & Idatoru, A. R. (2017). Issues and challenges inherent in the Nigerian tax system. American Journal Management of Science and Engineering, 2(4), 52-57.
Egwanwor, T. C. & Edori D. S. (2024). Tax enforcement strategies and tax compliance in Nigeria: An empirical study of taxpayers in Port Harcourt. Advance Journal of Management, Accounting and Finance, 9(7), 36-60.
Fjeldstad, O. H., & Heggstad, K. (2017). Taxpayer attitudes and compliance behavior in Tanzania and Uganda. CMI Report, Bergen: Chr. Michelsen Institute.
James, S. & Alley, C. (2004). Tax compliance, self-assessment and tax administration. Journal of Finance and Management in Public Services, 2(2), 27-42.
Jemaiyo, B. & Mutai, G.C. (2016). Determinants of tax compliance and their influence on the level of tax compliance in the real estate sector, Eldoret town-Kenya. African Peer Reviewed Journals, 12, 555-584.
Kircher, E. E. (2008). Enforced versus voluntary tax compliance: The slippery framework. Journal of Economic Psychology, 29(2), 210-225
Modugu, K. P., & Anyaduba, J. O. (2015). Impact of tax audit on tax compliance in Nigeria. Journal of Accounting and Taxation, 7(2), 34-41.
Musa, A., & Dike, M. (2021). The impact of tax amnesty on revenue generation in Nigeria. African Journal of Economic and Management Studies, 12(1), 85-99.
Ogaluzor, O. I. & Edori, D. S. (2023). Tax education and tax compliance: A study of the informal sector operators in Rivers and Abia State. British International Journal of Applied Economics, Finance and Accounting, 7(4), 34-45
Oghuma, R. I. (2018). Tax audit, penalty and tax compliance in Nigeria. International Journal of Accounting & Finance, 7(2), 74-86.
Ogundele, O. (2016). Tax compliance and its determinants in Nigeria. Nigerian Journal of Management Studies, 12(2), 34-56.
Oladipupo, A. O., & Obazee, U. (2016). Penalty enforcement and tax compliance in Nigeria. International Journal of Accounting Research, 5(3), 67-78.
Olaoye, C. O., & Ekundayo, B. O. (2019). Tax penalties and tax compliance in Nigeria. Journal of Taxation and Regulation, 5(1), 88-97.
Olowookere, J. K., & Fasina, H. T. (2020). Tax penalty and tax compliance in Nigeria: An empirical analysis. Journal of Public Administration and Policy Research, 12(1), 85-99.
Onuoha, L. N. & Dada, S. O. (2016). Tax audit and investigation as imperatives for efficient tax administration in Nigeria. Journal of Business Administration and Management Sciences Research, 5, 66-76.
Organization for Economic Co-operation and Development (OECD). (2006). strengthening tax audit capabilities: Auditor workforce management survey findings and observations. https://www.oecd.org/tax/administration/37589929.pdf
Song, Y., & Yarbrough, T. E. (1978). Tax ethics and tax payer attitudes: A survey. Public Administration Review, 38(5), 442-452.
Yusuf, S., & Sani, M. (2018). The impact of tax audits on revenue generation in Nigeria. Journal of Taxation and Revenue Administration, 4(3), 67-79
