DETERMINANTS OF TAX AUDIT EFFECTIVENESS

ABSTRACT

This study investigates the determinants of tax audit effectiveness. A quantitative research design was adopted, employing regression analysis to evaluate the relationships between the identified factors and tax audit effectiveness. The study population comprised tax auditors and taxpayers within Edo and Delta State, with a sample size of 150. Data was collected using structured questionnaires and standard multiple regression analysis to determine the significance and strength of the correlations. The study finds significant positive relationship between tax audit effectiveness and the following factors: organizational structure, tax auditor expertise and training, cooperative taxpayer behavior, robust regulatory frameworks, and advanced technological infrastructure. The study recommends that tax authorities invest in organizational infrastructure, continuous professional development for auditors, strategies to strengthen taxpayer engagement, enhancement of regulatory frameworks, and technological advancements. Implementing these recommendations could optimize audit processes, enhance compliance with tax laws, and improve overall governance and revenue collection.