TAX ENFORECEMENT STRATEGIES AND REVENUE GENERATION IN NIGERIA

Abstract

The high level of tax evasion in

Nigeria necessitated the need for the government to embark

on tax enforcement. This study

empirically investigated the influence of tax enforcement on

revenue generation in South –South, Nigeria. The study employed cross sectional survey

research design using primary data obtained through administration of well-structured

questionnaire on 183 selected respondents from among employees of Federal Inland

Revenue Service (FIRS) offices in South – South, Nigeria. Taro Yamane formula and

judgment sampling technique were used to arrive at the sampled respondents. The

questionnaire responses were analysed using univariate, bivariate and multivariate analysis.

The multiple regression analysis revealed a positive and significant relationship between tax

audit and withholding tax; a positive and significant relationship between tax penalty and

withholding tax; a positive and significant relationship between tax amnesty and withholding

tax; a positive and significant relationship between tax litigation and withholding tax; and a

positive and significant relationship between tax holiday and withholding tax. The study

concluded that tax enforcement strategies improve the revenue generation capacity of the

government. The study recommended amongst others that tax audit especially on major tax

payers and high net worth individuals in the society that mostly engage in tax evasion.

Hence constant tax audit will contribution to detect false, incorrect and or underreporting of

taxable incomes.