IDEAS home Printed from https://ideas.repec.org/a/dug/jaccma/y2024i1p60-73.html
   My bibliography  Save this article

Tax audit and its effect on tax compliance of MSMEs in Nigeria

Author

Listed:
  • Abdulhamid Ellawule

    (Abubakar Tafawa Balewa University)

  • Yusuf Maiwada Bashir

    (Abubakar Tafawa Balewa University)

  • Bala Sulaiman Dalhat

    (Abubakar Tafawa Balewa University)

  • Naziru Suleiman

    (Abubakar Tafawa Balewa University)

Abstract

The self-assessment regime comes with a lot of challenges in the tax system. One of the problems is tax compliance problem. This study, therefore, investigated the effect tax audits have on tax compliance of Micro, Small and Medium Enterprises (MSMEs) in Nigeria. Five hundred (500) MSMEs were selected for the study and the regression technique through Statistical Package for Social Sciences (SPSS) was adopted for the analysis. The study found that tax audits do have a significant effect on the tax compliance of MSMEs in Nigeria. Also, intentional tax fraud investigation and enterprise tax return verification both have a significant effect on the tax compliance of MSMEs in Nigeria. Most of the local government revenue collectors or their agents have little or no adequate technical know-how to carry out tax audits on the businesses when the integrity of the books of account of the businesses is in doubt. To improve the tax base of the country, the government should train and retrain the tax authority staff and their agents to enhance their capacities in carrying out their assignment of collecting revenue and tax audits when the need arises.

Suggested Citation

  • Abdulhamid Ellawule & Yusuf Maiwada Bashir & Bala Sulaiman Dalhat & Naziru Suleiman, 2024. "Tax audit and its effect on tax compliance of MSMEs in Nigeria," The Journal of Accounting and Management, Danubius University of Galati, issue 1(14), pages 60-73, April.
    • Handle: RePEc:dug:jaccma:y:2024:i:1:p:60-73
    as

    Download full text from publisher

    File URL: https://dj.univ-danubius.ro/index.php/JAM/article/view/2550/2815
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:jaccma:y:2024:i:1:p:60-73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Florian Nuta (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.