Effects of Tax Audit on Tax Compliance in Ekiti State, Nigeria

Abstract

The paper examined the effects of tax audit on tax compliance in Ekiti State, Nigeria. The study employed primary data where 60 questionnaires were randomly distributed to Federal Inland Revenue Service and Ekiti State Board of Internal Revenue Service Staff. Multinomial Logistic Regression analysis was employed as the estimation technique. The findings revealed that the multinomial logistic regression model fitting information was significance with the p-value of 0.040 which implies that the tax audit can influence the tax compliance. Also, the likelihood ratio tests of multinomial regression showed that tax accuracy and current returns have not been significantly affecting tax compliance, that tax law has effect on tax compliance while tax procedure has no effect on tax compliance during the study period. The study concluded that tax audit is yet to make any substantial effect on tax compliance. It therefore recommended that the relevant tax authority at all levels should improve the standard of tax audit employed for effectiveness and efficiency and equally, relevant tax authority should provide a policy that would allow the tax payers to cooperate during the period of tax audit.

Keywords: Government Revenue, Tax, Tax Audit, Tax Compliance


Article Review Status: Published

Pages: 13-19 (Download PDF)

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