TAX AUDIT AND DIRECT TAX REVENUE IN LOTTERY INDUSTRY IN NIGERIA: CAN FORENSIC ACCOUNTING BRIDGE THE GAP?

Ebenezer Y AKINKOYE, Israel S AKINADEWO, Godwin E OYEDOKUN, Taiwo O. ASAOLU

Abstract

This study examined the factors discouraging the literates from staking; appraised the problems affecting ineffective application of Direct Tax provisions on “stakers” income; and determined the extent at which FA could influence DTR in Lottery industry in Nigeria. Sample size was purposively selected from the population, consisting of tax officials of lotto in Lagos/Ogun States, FAs, and licensed lotto companies’ staff/agents/”stakers”. Primary data with semi-structured questionnaire sent with 209 validly returned. Descriptive Analysis and multiple regression analysis were used to analyze the data. The study reveals that many of the literates believe that staking does not match the expectations of their education; that lack of effective data on the “stakers” contributes in the use of an “agreed” amount as minimum tax and the regression analysis shows that FA is an effective method of reducing economic crimes, including tax evasion and it could be used to increase DTR in Lotto industry.

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