Journal of Economic, Finance Research and Review (JEFRR)

Tax Audit and Tax Aggressiveness Among Listed Commercial Banks in Nigeria

Blessing, Ali, Oke, Okolie, Augustine

29 August 2026 · Vol. 2, Issue 8, pp. 564-572

DOI: 10.65150/EP-jefrr/V2-E8/2026-11

Abstract

This study examined the effect of tax audits on tax aggressiveness among listed commercial banks in Nigeria over the period 2014–2024. An ex-post facto research design was adopted, while secondary data were obtained from the annual reports of sampled banks, Federal Inland Revenue Service (FIRS) publications, and other regulatory reports. Data were analyzed using descriptive statistics, correlation analysis, diagnostic tests, and logistic regression techniques. The findings revealed that cash tax paid has a significant negative effect on tax audit occurrence (β = -0.6500, p = 0.022), indicating that banks with lower tax remittances are more likely to be audited. Deferred tax assets were found to have a significant positive effect on tax audits (β = 0.2140, p = 0.047), suggesting that banks with larger deferred tax positions attract greater regulatory scrutiny. The results further showed that debt tax shields significantly increased the likelihood of tax audits (β = 129.7142, p = 0.025), whereas non-debt tax shields have no significant effect (p = 0.470). The study concludes that tax audits significantly influence cash tax paid, deferred tax assets, and debt-related tax planning among listed commercial banks in Nigeria. The study recommends improved tax compliance, transparent deferred tax reporting, and prudent management of debt-related tax deductions. The study contributed to knowledge by providing empirical evidence on how cash tax paid, deferred tax assets, and debt tax shields are associated with tax audit occurrence within the Nigerian banking sector, thereby extending existing knowledge on tax audit effectiveness in emerging economies.

Keywords: Tax Audit, Tax Aggressiveness, Cash Tax Paid, Deferred Tax Assets, Tax Shield.

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Blessing, Ali, Oke, Okolie, & Augustine (2026). Tax Audit and Tax Aggressiveness Among Listed Commercial Banks in Nigeria. Journal of Economic, Finance Research and Review, 2(8), 564-572. https://doi.org/10.65150/EP-jefrr/V2-E8/2026-11

@article{Blessing2026,
  title   = {Tax Audit and Tax Aggressiveness Among Listed Commercial Banks in Nigeria},
  author  = {Blessing and Ali and Oke and Okolie and Augustine},
  journal = {Journal of Economic, Finance Research and Review},
  year    = {2026},
  volume  = {2},
  number  = {8},
  pages   = {564-572},
  doi     = {10.65150/EP-jefrr/V2-E8/2026-11},
  url     = {https://doi.org/10.65150/EP-jefrr/V2-E8/2026-11}
}

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