The unceasing and interminable tax related fraud resulting to corporate collapse and thefailure of the statutory audit to detect and prevent fraudulent activities which had led to theimpoverishment of investors had given rise to the need for forensic audit andinvestigations.In Nigeria, the recent worldwide economy downturn through COVID-19 pandemic anddecrease in price of crude oil and sales quantity in the global market has contributed todifficulties in the implementation of annual budget. This resulted to a shift to tax revenuesbut the major challenge is the high rate of tax fraud and tax evasion.Fraud is the deliberate action, false depiction or suppression of material facts for thepurpose of deceiving another to act upon it in order to be cheated. Tax fraud on the otherhand, is the deliberate deception and tricks to minimize tax payment or refusal in taxpayment through falsification of tax returns or evasion. Tax fraud is an intentionaldeception by taxpayer that results in an injury (tax loss) to the government. It involves bothunderpayment of tax and fraudulent intent. This can be committed against the governmentand tax authorities that collect taxes in the federal, state and local government. Tax fraudhave both domestic and international dimension. The domestic dimension is in the form oftax evasion, especially as a result of high number of informal sector or shadow economy. Tax fraud is not only associated with reputational damages of corporations and negativevalues for investors, it also implies negative consequences for public budgets and economicgrowth. Therefore, numerous governments have declared the fight against (offshore) tax evasion. Tax authorities as well as accounting research, however, face a huge challenge inidentifying tax fraud.