Effects of Tax Havens and Employee Tax Fraud on Internally Generated Revenue (IGR) in Oyo State, Nigeria
Abstract
The current study examined the effects of tax fraud on the Internally Generated Revenue (IGR) of the Oyo State Government. The study investigated the impact of tax haven utilization and tax incentives on IGR. Moreover, the study also adopted a quantitative research design and employed a standardized questionnaire as the primary research instrument. The population comprised personnel from the Oyo State Internal Revenue Service. A non-probability purposive sampling technique was employed due to the small population size. The questionnaire comprised two sections, that is, section one focused on respondent characteristics, whereas the other one focused on tax fraud and IGR. Regression analysis was employed as a data analysis technique to test the hypotheses. Moreover, the study also examined the relationship between tax fraud variables, tax haven, and IGR. The findings revealed no significant relationship between tax haven utilization and IGR. Furthermore, a significant positive relationship was established between employee tax fraud and IGR, indicating its adverse impact on revenue generation. Based on findings, it was recommended that the Oyo State Government should implement measures to prevent employee tax fraud including comprehensive training and monitoring of tax officials along with the establishment of a whistle-blower policy. By effectively addressing tax fraud, the government can enhance its IGR and work towards its development objectives.
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References
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