Effect Of Company Income Tax On Return On Investment (A Study Of Manufacturing Firms In Nigeria):- Onuoha favour N.

ABSTRACT

This study examined the effect of company income tax on financial performance of manufacturing firms in Nigeria, with consideration to the brewery industry, as a result of its consistent growth record on the Nigeria stock exchange. The study used secondary sources of data and expose facts as the research design. Simple linear regression analysis was used in computing the ROI, ROE & ROA. The study revealed that the level of company income tax has a significant effect on the ROI, ROE & ROA. I conclude that the positive and significant relation between the profitability and the taxation explanatory variables indicates that policy measures to expand tax revenue through more effective tax administration will impact positively on growing the company's profitability. It is therefore recommended that manufacturing firms in Nigeria should incorporate a corporate tax policy that uses debt financing because these will enhance the profitability of the firms.