Tax Audit Determinants and Corporate Tax Compliance in Nigeria

Abstract

This study examines whether the impact of tax audit probability, frequency of tax audit and tax penalties could improve corporate tax compliance in Nigeria. The study adopted a survey research design to elicit data from the respondents. In testing the research hypotheses, the study adopted the use of descriptive statistics, correlation and least square regression methods to analyse the data. The findings revealed a significant impact of tax audit probability and frequency of tax audit on corporate tax compliance. However, there was no significant impact of tax penalties on corporate tax compliance. The study recommends that a tax audit exercise should be frequently carried out in order to strongly discourage non-compliance. In addition, the government should empower significantly the relevant tax authorities to monitor and enforce regulations toward tax compliance in Nigeria.