TAX ENFORCEMENT 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 thattax 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.