Tax Fraud In Nigeria: A Review Of Causal Factors

Tax fraud is a longstanding problem that has affected the government's ability to mobilise revenue needed to enhance growth and development. Billions of naira have been reported lost to tax fraud and mitigating this menace has become a high point of call to various tax authorities. Prior researchers have alluded that strategies to deterring tax fraud should be built on factors that influence taxpayers' noncompliant attitudes. On this premise, this study sets out the broad objective of examining the various causal factors of tax fraud in Nigeria. The study adopted the desk research design which involves a review of periodicals on tax fraud in Nigeria, journal articles on the subject of tax fraud, corporate reports and other related documents that address the vexed issue of tax fraud. The study revealed some factors against tax fraud; and these revolve around tax rate, income level, poor tax administration, corruption, low tax penalty, perceived use of tax revenue, tax fairness, and the level of tax payer's education. Each of these factors was found to impinge on tax fraud either separately or through a contribution of a number of factors to the flux of tax fraud in Nigeria. Further, though these factors contribute to the debacle of tax fraud as observed in the literature, they, however, present themselves as factors whose effect in tax fraud are felt in various degrees. In the light of the foregoing, it is suggested that clearly defined strategies and tax policies be required in terms of clear-cut incentives and tax cuts to reduce the burden of tax and to eliminate opportunities that facilitate tax fraud.