IMPACT OF FORENSIC ACCOUNTING ON TAX ADMINISTRATION IN NIGERIA

Traditional tax administration can no longer be sustained in the present IT powered environment that most organizations operate in. This study is set to examine forensic accounting as tool for effective tax administration in Nigeria with Edo State in focus. The specific objectives are to examine the impact of forensic tax assessment and forensic tax audit on tax administration in Edo State. Survey research design was adopted and a sample of 347 questionnaires was distributed to tax practitioners and staff both Federal and State revenue services operating in Benin-City Edo State. Simple percentages, tables were used to analyze the data while regression analysis was used to test the hypothesis. The outcome of the findings shows that there is positive and significant relationship between forensic tax assessment and forensic tax audit on tax administration in Nigeria. The study concluded that there is positive and significant relationship between forensic accounting and tax administration in Edo State. The study therefore recommends that all tax authorities both at Federal and state level should engage the services of forensic accountants in their offices to curb the spate of tax fraud that has adversely affected tax revenue generated.