EFFECT OF TAX AUDIT PRACTICES ON REVENUE GENERATION IN NIGERIA

ABSTRACT This study is centered on the effect of tax audit practices on revenue generation in Nigeria and it specifically appraised the relationship between desk tax audit and company income tax in Nigeria; and it also specifically determined the relationship between field tax audit and company income tax in Nigeria. Survey method was adopted and questionnaire was used as instrument of data collection while descriptive method was used to analyse the data using tables and percentages. Result showed that there is significant relationship between desk tax audit and company income tax in Nigeria; and that field tax audit has contributed significantly to the company income tax in Nigeria. Based on the findings recommendations were made that the Relevant Tax Authorities (RTAs) at all levels should improve the standard of tax audit employed for effectiveness and efficiency; that tax audit process should be aimed at reducing the challenges of tax evasion, tax avoidance and other related tax irregularities; that the tax audit net should be widened in such a way that will ensure proper submission of accurate and correct returns for proper computation of tax liabilities and also bring in new taxable entities; that RTAs should formulate policies and carry out awareness campaigns on the importance of tax payment and the effect of non-tax payment, in order to improve the level of compliance.