THE NEXUS BETWEEN TAX AUDIT AND TAX COMPLIANCE IN NIGERIA

The study attempted to determine the nexus between tax audit and compliance in Nigeria. The study adopted the survey method on the accessible population, which comprises of individual taxpayers and tax officials of the RED zone offices of the Federal Inland Revenue Service in the South-South region. Using the purposive sampling method, three hundred (300) respondents were selected as the study sample size, while the questionnaire was used as the data collection instrument. In analyzing, the Pearson product moment correlation techniques were applied. Based on the analyses conducted, the study found that the relationship between tax audit and timely filing of tax returns as well as prompt payment of the tax liabilities is significant. The study further found a positive correlation between tax audit and timely filing of tax returns as well as prompt payment of the tax liabilities with correlation values of 0.830 and 0.755. It was then recommended that tax authorities should increase the frequency and coverage of tax audits to ensure a higher probability of detection for non-compliance and also implementing transparent and equitable audit processes that will enhance taxpayer confidence and compliance. The study concluded that the nexus between tax audit and tax compliance in Nigeria is significant and positive