Low tax compliance and remittance limit the capacity of government to raise
revenue for developmental purposes because the higher the revenue, the more
likely government will put in place developmental plans for the enhancement
of the living standard of the people. Based on this, the study examined the effects
of tax audit on tax compliance and remittance of tax revenue in Ekiti
State. It specifically investigated the effect of desk audit, field audit, back duty
audit and registration audit on tax compliance and remittance of tax revenue
in Ekiti State. A close-ended questionnaire was used to gather the needed data
and an analysis was carried out through correlation matrix and multiple regression.
It was discovered that desk audit, field audit, back duty audit and
registration audit had a positive significant effect on tax compliance and remittance
in Ekiti State with the p-value of 0.001, 0.000, 0.000 and 0.000 respectively.
Worthy of note was that field audit was the most significant predictor
out of all the predictor variables. It was concluded that tax audit could
engender tax compliance and remittance in Ekiti State. It was therefore recommended
that Ekiti State government should intensify tax audit through the
employment of more competent staffs and intermittent training in order to
cause increase in tax compliance level in the State. Also, Audited files that reveal
criminal act should not be taken slightly. Tax evaders and avoiders
should be seriously dealt with so as to deter others from plodding the same
criminal path.
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