Tax Administration and Generation of Tax Revenue in Nigeria

Niyi Solomon Awotomilusi (PhD)
Department of Accounting, College of Social and Management Science, Afe Babalola University, Ado Ekiti, Ekiti State, Nigeria
DOI – http://doi.org/10.37502/IJSMR.2022.5107

Abstract

The purpose of the study was to evaluate how tax administration affects tax revenue generation in Nigeria. The government tax administration mechanisms, which are used to monitor tax collection, include tax audit, tax amnesty, tax enforcement and tax penalties. The study adopted survey research design analysed with descriptive and inferential statistics. The population of the study consisted of 302 audits and risk department personnel from the State Board of Internal Revenue and the Federal Inland Revenue Service in the southwest Nigerian states of Ekiti, Ondo, Osun, Oyo, Ogun, and Lagos. A total of 172 persons were sampled using the Taro Yamane sampling method to obtain the sample size. The researcher created a closed-ended questionnaire to obtain primary data for the study. The data were analysed using multiple linear regression analysis to obtain the inferential statistics. According to the findings, tax penalties should be strong enough to deter would-be tax defaulters, tax administrators should continue to enforce tax laws against taxpayers. Tax audit should be intensified to unravel any act of tax evasion and tax amnesty should be seldomly granted due to its negative effect on tax revenue in Nigeria.

Keywords: Tax administration, Tax revenue, Tax audit, Tax amnesty, Tax penalties, Tax enforcement.

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