TAX AUDIT AND INVESTIGATION IN ENUGU STATE, NIGERIA

ABSTRACT

This study assessed how Tax Audit and Investigation has ensured voluntary compliance by tax payers in Nigeria. The study aimed to (i) examine the extent to which tax audit and investigation has reduced tax evasion (ii) examine the extent to which tax audit and investigation has assisted in voluntary compliance by taxpayers (iii) examine whether there is any positive effect on the introduction of self-assessment to the complexity of income tax administration. (iv) examine the effect of inducement on tax officials in the performance of their duty. The sample survey design was adopted for the study. The population of the study comprised 2500 registered taxpayers and 150 staff of FIRS Enugu. The Taro Yamene’s (1964) method of sample size determination was used to determine a sample of 348. The instruments used for data collection were structured questionnaire and oral interviews. Simple percentage, mean scores, standard deviation and co-efficient of variation were used in data presentation and analysis. Hypotheses were tested at 10% level of significance using student’s t-test statistic. The study revealed that the introduction of self-assessment has played a major role in collection of taxes by adding credibility to the process and that the absence of functional tax audit and investigation units is largely the bane of non-compliance and tax evasion. Further studies are recommended to be carried out on improving tax audit and investigation in Nigeria.