Effect of Revenue Generation on Tax Auditing and Investigation in Osun State

With an emphasis on how tax audits and investigations enhance government revenue collection, this study looks at how revenue production affects these processes in Osun State. The effectiveness of tax audits, the frequency of tax investigations, and their impact on lowering tax evasion and improving adherence to statutory tax regulations are all examined in this study. Structured questionnaires were used to gather data from tax officers, auditors, and business owners in Osun State using a descriptive survey approach. The data was analyzed using statistical tools such as standard deviation and weighted mean scores. The results show that by detecting non-compliance, revealing hidden revenues, and deterring dishonest tax practices, tax auditing and inquiry have a major impact on revenue production.
However, obstacles like a lack of funding, a shortage of personnel, and taxpayer ignorance prevent the best possible performance. The study comes to the conclusion that boosting government revenue requires efficient tax audits and investigations. To improve the effectiveness of tax administration in Osun State, it suggests adopting technology-driven tax systems, educating taxpayers, and implementing capacity-building programs for tax auditors. This study gives policymakers and other stakeholders in the tax administration industry useful information while highlighting the crucial role that tax audits and inquiry play as instruments for generating income.