Effect of Tax Audit and Investigation on Revenue Generation in Nigeria

Abstract The main purpose of the study is to investigate tax audit practices and their effect on revenue collection in Nigeria. The association between tax audit effectiveness and tax audit practices was examined using both descriptive and explanatory study methodologies. In this study, a mixed research design was employed. Sixty surveys in all were correctly completed and returned, and a census sampling method was used. Semi structured interviews were employed as a data collection tool, along with a structured questionnaire with a five-point Likert scale rating system. Using SPSS version 26.0, the acquired data were condensed and subjected to descriptive and inferential statistical analysis. The outcome is then discussed for a more thorough analysis of the findings after being provided as tables and figures. The major findings of the study are that organizational independence, auditee characteristics, and audit quality significantly impact revenue collection. Top level management support indirectly affects revenue outcomes, while the organizational environment has a more nuanced influence. The researcher recommended that, ensure that the revenue collection offices function independently of outside pressures to fortify their independence, improve audit quality by taking auditee characteristics into account, raise the caliber of audits to increase revenue collection, encourage senior management to promote revenue collection initiatives, make sure upper management properly distributes resources and sets sales targets, and establish conditions that will allow for efficient revenue collection. Key words: Tax audit, revenue, collection, effectiveness