Tax Audit and Revenue Generation: A Theoretical Perspective

UTILE BEM JOSEPH, GBAA BENJAMIN AND P.I. ZAIYOL

Department of Accounting,

Federal University of Agriculture, Makurdi

Email: utilebem@gmail.com

ABSTRACT

The increase in tax evasion and actual tax revenue collected not fully remitted to the government necessitated this research work on tax audit. This is because  an average Nigerian has no faith in the government and will not want to entrust their resources to the government , thus such payment of tax is  ranked among the least obligation they owe to the government at all levels. The focus of this study is to review the related literature on tax audit and revenue generation. Secondary source of information collected from journals, textbooks and internet materials were used for the review. It was observed that tax audit is one of the greatest means of ensuring prompt and accurate remittance of tax collected, which in turn impact on revenue generation and also prevent tax evasion and tax avoidance. The research recommends that tax audit and revenue generation should be continuously researched upon to put in the minds of the tax authorities the necessity to carryout tax audit on regular basis.

Keywords: Tax Evasion, Tax Revenue, Tax Audit and Tax Compliance