Tax Audit and Company’s Incom Tax Revenue in Nigeria
Vol.6 Issue 2
The study investigates tax audit and company income tax revenue in Nigeria. Specifically, to ascertain the effect of tax audit on company’s income tax revenue Nigeria. The population of the study is Federal Inland Revenue Service (FIRS) Nigeria; Census was used for the study. Primary data were collected through questionnaire while secondary data were collected from FIRS planning, research and statistics Departments, Central Bank of Nigeria (CBN) statistical bulletin. The data were analyzed using descriptive statistics of mean, standard deviation, frequency distribution and bar chart. Inferential statistics of linear regression was used to test the hypotheses in the study. The analysis was done with the aid of the Statistical Package for Social Sciences (SPSS) version 22.0. From the analysis, it was found that the strength and direction of the effect of tax audit on company’s income tax is 0.878, indicating that there is a very strong and positive effect between the variables. The probability value is 0.000 < 0.05 which means tax audit statistically significantly predicts company’s income tax. Again, the analysis indicates that approximately 75% of the changes in company’s income tax is accounted for by tax audit. Based on these findings, the study concludes that tax audit is a very strong tool for achieving increase in company’s income tax revenue. We therefore recommend that: Federal Inland Revenue Service should encourage, strengthen and give more attention to the tax audit department, focus more on the audit activities of the service. This will deter taxpayer’s against non-compliance and discourage tax evasion. Again, the Federal Inland Revenue Service should carry out publicity at regular intervals on both electronic and social media, even on newspapers to display enforcement actions previously taken against defaulting taxpayers.
