Abstract
Low tax compliance and remittance limit the capacity of government to raise revenue for developmental purposes because the higher the revenue, the more likely government will put in place developmental plans for the enhancement of the living standard of the people. Based on this, the study examined the effects of tax audit on tax compliance and remittance of tax revenue in Ekiti State. It specifically investigated the effect of desk audit, field audit, back duty audit and registration audit on tax compliance and remittance of tax revenue in Ekiti State. A close-ended questionnaire was used to gather the needed data and an analysis was carried out through correlation matrix and multiple regression. It was discovered that desk audit, field audit, back duty audit and registration audit had a positive significant effect on tax compliance and remittance in Ekiti State with the p-value of 0.001, 0.000, 0.000 and 0.000 respectively. Worthy of note was that field audit was the most significant predictor out of all the predictor variables. It was concluded that tax audit could engender tax compliance and remittance in Ekiti State. It was therefore recommended that Ekiti State government should intensify tax audit through the employment of more competent staffs and intermittent training in order to cause increase in tax compliance level in the State. Also, Audited files that reveal criminal act should not be taken slightly. Tax evaders and avoiders should be seriously dealt with so as to deter others from plodding the same criminal path.
Highlights
It was recommended that Ekiti State government should intensify tax audit through the employment of more competent staffs and intermittent training in order to cause increase in tax compliance level in the State
The outcome above revealed that there is a positive significant correlation between tax compliance and remittance and desk audit, field audit, back duty audit and registration audit with correlation coefficient and p-values of 0.675** and 0.000; 0.755** and 0.000; 0.748** and 0.000 and 0.745** and 0.000 respectively. This connotes that tax compliance and remittance move in the same direction with desk audit, field audit, back duty audit and registration audit
The major discovery made in the analysis is that all the variables move in the same direction. This means that when desk audit, field audit, back duty audit and registration audit are increasing, the compliance level of taxpayers is increasing
Summary
To achieve these tasks, governments require huge funds to fulfill its obligations. Among the various sources that government generates revenue, taxes are the most important and most reliable means, contributing much more than any other sources [1] From this perspective, tax is a compulsory levy imposed by the government on the income, profit or wealth of an individual, family, community, corporate or unincorporated bodies etc., for the purposes of financing public expenditures which centered on providing social amenities for her citizens.
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