IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 9 2024
DOI: 10.56201/jafm.v10.no9.2024.pg315.326

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Field Audit and Companies Income Tax Compliance in Federal Capital Territory, Nigeria: The Moderating Role of Tax Officers' Expertise

Ovie Ogidiaka, Eniola Samuel Agbi, Ahmed Nma Mohammed, Lateef Olumide Mustapha & Abdulsalam Latifat Abdulfatah

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Abstract

Tax non-compliance is a serious issue in Nigeria that has significantly and negatively impacted the revenue base of the country. The problem of low revenue generation has deprived the government of Nigeria from carrying out its functions. Hence, this study examined field audit and companies income tax compliance in Federal Capital Territory, Nigeria: the moderating role of tax officers’ expertise. The population of the study consists of 304 Federal Inland Revenue Service staff in tax audit department in Federal Capital Territory. A sample size of 173 was determined using the Taro Yamane formula. Multiple regression with the help of STATA version 13 was used to analyze the data and to test the hypotheses of the study. The findings showed that field audit has a positive and significant effect on companies income tax compliance. When the effect is moderated by tax officers’ expertise, the result is positive and statistically significant. As a matter of policy, the FIRS should focus its attention on sectors with a high risk of non-compliance in order to optimize its resources to improve compliance. The study therefore recommended that FIRS should constantly engage in field audit as it is an integral part of companies income tax compliance. Also, FIRS should collaborate with industry groups in order to gain a better understanding and provide solutions to industry-based issues for better compliance.

keywords:

Tax audit; Field Audit; Companies Income Tax Compliance; Nigeria; Tax officers’ Expertise

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