Thesis & Dissertation

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Browsing Thesis & Dissertation by Author "ISRAEL SERIKI AKINADEWO"

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    FORENSIC ACCOUNTING AND TAX EVASION DETECTION IN LAGOS STATE
    (2021) ISRAEL SERIKI AKINADEWO
    The study analysed the extent of tax evasion in Lagos State; examined the determinants of tax evasion; and investigated the specific forensic accounting techniques used for tax evasion detection. It also assessed the effect of forensic accounting on tax evasion detection in the State. These were with the view of generating information on the extent of tax evasion and the effect of forensic accounting on tax evasion detection in Lagos State. The study adopted descriptive survey design and employed both primary and secondary data. The population of the study was 1,387 forensic accountants licensed by the Lagos State Internal Revenue for tax assignment and senior tax officials. A sample size of 301 was selected using Krejcie & Morgan (1970) formula with the respondents chosen through purposive sampling technique. Data were analysis involved tables, percentages, and logit regression. The results showed that the rate of tax evasion in the earlier years, from the Lagos Internal Revenue Service records in comparison to the total revenue generated was between 11% and 40%, which agreed to the analysis of the perception of the experts. The rates were further reduced to 11.27% in 2018. The failure of government in the performance of civic responsibilities (74.1%), the inability of government to provide the enabling environment for businesses to grow (67.2%), and the evasion of tax by the affluent of the society without adequately prosecuting them (67.1%) determined tax evasion in Lagos State. Also, inconsistencies in government policies (66.4%), multiple taxation (63.8%), and ineffective prosecution of tax evasion cases (56.5%), were among the determinants of tax evasion in the state. Benford’s Law (55.1%), Computer Assisted Review and Document Review (50.2%), and Identifying Anomalies’ Techniques (59.2%) were the specific forensic accounting techniques adopted for tax evasion detection. Trend Analysis (45.8%), Business Intelligence (43.9%), Relative Size Factor (43.9%), Ratio analysis and Data Matching (40.2%), Data Mining Tools (38.9%), Revenue Approaches (38.9%), Variance Analysis (37.2%), Expenditure Approach (35.5%), and New Worth Comparative Method (31.6%) were among the forensic accounting tools employed for tax evasion detection. In addition, detection, prevention and deterrence skills (t = 5.268, p < 0.05); forensic audit, investigation and interviewing skills (t = 1.936, p < 0.05); arbitration, mediation and litigation skills (t = 2.618, p < 0.05) and honesty, high integrity and communication skills (t = 1.552, p < 0.05) had positive and significant effect on tax evasion detection. Ratio analysis and data matching techniques (t = .234, p < 0.05); data matching techniques (t = 2.196, p < 0.05); computer assisted review and document review techniques (t = 3.543, p < 0.05); net worth analysis (t = 1.844, p < 0.05) and expenditure technique (t = 1.829, p < 0.05) positively influenced tax evasion detection. Thus, increase in the application of forensic accounting skills and techniques would result into reduction in tax evasion. The study concluded that application of forensic accounting notably enhanced efficient tax administration and minimised tax evasion in Lagos State.