EFFECT OF TAX AND INVESTIGATION ON REVENUE GENERATION IN NIGERIA

The study examined the effect of tax and investigation on revenue generation of Benue State Board of Internal Revenue Service (BIRS). The study specifically examined effect of desk audits, field audits, risk profiling, data matching and record keeping on revenue generation by BIRS in Benue State. The study was a descriptive research design and a cross sectional survey was conducted. The study involved 680 staff of Benue State Board of Internal Revenue Service Makurdi Benue state from which a sample of 252 was drawn. Primary data was collected using standardized instrument. Sampling technique is adopted for this study and SPSS was deployed for data analysis. Findings indicated desk audits, field audits, risk profiling, data matching and record keeping has a positive and significant effect on revenue generation by BIRS in Benue State. The study concludes that revenue generation of Benue State is strongly affected by desk audits, field audits, risk profiling, data matching and record keeping. The study recommends that BIRS should further invest in developing and refining its desk auditing processes. This includes enhancing the skills and training of auditors, improving the analytical tools used in desk audits, and ensuring that there is a streamlined and efficient workflow for conducting these audits. Regularly updating the criteria for selecting cases for desk audits based on risk assessment can also lead to more effective revenue outcomes. Moreso, BIRS should continue to refine and update its risk assessment methodologies. This could involve incorporating more diverse data sources, leveraging predictive analytics, and adapting the risk criteria based on changing economic conditions and taxpayer behaviors. Regularly reviewing and updating risk profiles will ensure that enforcement efforts are targeted where they can yield the most significant results.