THE IMPACT OF TAX AUDIT ON REVENUE GENERATION IN SOKOTO STATE

ABSTRACT The study investigated the impact of tax audit practices on revenue generation in Sokoto with its specific objectives such as to determine the relationship between tax audit practices dimensions and company income tax. The population of the study consisted of tax offices Sokoto State, Nigeria with 20 staff of Federal Inland Revenue Service (FIRS). The sample size for the study consisted of 20 staff of FIRS which was determined using Taro Yemane formula for sample size determination. Primary data were collected from respondents using the questionnaire instrument. Pearson Product Moment Correlation Coefficient was also used with the aid of Statistical Package for Social Sciences (SPSS) version 23.0 to test null hypotheses. The findings of the study reveal that desk tax audit and field tax audit have a positive relationship with company income tax. The study therefore recommends that tax authorities should not concentrate only on desk tax audit but also on field tax audit so that revenue leakages will be blocked and increase the level of taxpayers’ compliance. Finally, there should be regular tax audit practices by tax authorities in Sokoto. This will assist in increasing government tax revenue.