Tax Fraud Detection, Documentation Practices, and Tax Compliance: The Strategic Role of Forensic Accounting and Tax Audit in Plateau State, Nigeria.

Abstract

This study examined tax fraud detection, documentation practices, and tax compliance: the strategic role of forensic accounting and tax audit in Plateau State, Nigeria. The study adopted a survey research design targeting a population of 464 staff of tax authorities, professional accountants, and selected taxpayers, with the sample size of 214 determined using the Taro Yamane formula. Data collected were analyzed using probit logistic regression to test the research hypotheses. Findings revealed that Tax Fraud Detection Systems (TFD) has a significant positive effect on tax compliance in Plateau State, Nigeria and that Documentation practices have a negative but statistically significant effect on tax compliance in Plateau State, Nigeria. It was recommended that Plateau State Internal Revenue Service (PSIRS) should continue investing in advanced Tax Fraud Detection Systems by integrating artificial intelligence, data analytics, and real-time monitoring tools to identify fraudulent activities promptly and that PSIRS should institute periodic evaluations of both Tax Fraud Detection Systems and Electronic Documentation Systems by collecting feedback from taxpayers and tax officials.