TAX ENFORCEMENT MEASURES AND REVENUE GENERATION IN NIGERIA

Abstract

The study investigated the relationship between tax enforcement measures and revenue generation in Nigeria with its specific objectives such as to determine the relationship between tax enforcement measures dimensions and value added tax. The population of the study consisted of 26 tax offices across South – South, Nigeria with 900 staff of Federal Inland Revenue Service (FIRS). The sample size for the study consisted of 277 staff of FIRS which was determined using Taro Yemane formula for sample size determination. Primary data were collected from respondents using the questionnaire instrument. Pearson Product Moment Correlation Coefficient was also used with the aid of Statistical Package for Social Sciences (SPSS) version 23.0 to test the null hypotheses. The findings of the study reveal that tax penalties has significant relationship with value added tax (r = 0.535**). While tax amnesty has a strong relationship with value added tax (r = 0.633**). The findings indicate that there is a positive relationship between tax enforcement measures and revenue generation. The study therefore, recommends that the government of Nigeria should re-address its tax enforcement measures so that tax penalties and amnesty will be encouraged. Finally, Tax amnesties are viewed as a source of generating funds or revenue by the government. It should be encouraged to expand the tax base.