Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between tax audit practices and taxpayer satisfaction has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Selected Deposit Money Banks in Nigeria where operating conditions differ markedly from more developed markets.

Selected Deposit Money Banks in Nigeria presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While tax audit practices is widely discussed in policy and industry circles, empirical evidence on its actual effect on taxpayer satisfaction within Selected Deposit Money Banks in Nigeria remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to tax audit practices are helping or hindering taxpayer satisfaction — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Tax Audit Practices on taxpayer satisfaction in Selected Deposit Money Banks in Nigeria.
2. To assess the extent to which tax audit practices influences taxpayer satisfaction within the study area.
3. To identify the challenges associated with tax audit practices in relation to taxpayer satisfaction.
4. To recommend strategies for optimizing tax audit practices in order to improve taxpayer satisfaction.

1.4 Research Questions

1. What is the effect of tax audit practices on taxpayer satisfaction in Selected Deposit Money Banks in Nigeria?
2. To what extent does tax audit practices influence taxpayer satisfaction within the study area?
3. What challenges are associated with tax audit practices in relation to taxpayer satisfaction?
4. What strategies can be adopted to optimize tax audit practices in order to improve taxpayer satisfaction?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around taxpayer satisfaction. For managers and practitioners within Selected Deposit Money Banks in Nigeria, the study provides practical insight into how tax audit practices can be better managed. Finally, it contributes to the academic literature on taxation by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

In terms of scope, this study confines itself to Selected Deposit Money Banks in Nigeria, focusing specifically on how tax audit practices relates to taxpayer satisfaction within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.