Impact Of Company Income Tax On The Performance Of Firm In Nigeria (A Study Of Nestle Nigeria Plc)

ABSTRACT

This study investigated the impact of company income tax on the performance of firms in Nigeria. The secondary data was sourced from financial statement of Nestle Nigeria Plc. The  data covered  from  2000 to  2016. The  econometric tool  was  simple regression analysis.  From the results,  it was found that company income tax has significant impact on return on asset of the company, company income tax has significant impact on return on equity of the company and company income tax has significant impact on return on profit after tax of the company. Based on the findings, it was recommended that government should articulate macroeconomic measures designed to stimulate growth and stability in order to forestall any negative variation that affect the companies' income tax revenue generation in any year.

TABLE  OF CONTENTS

CHAPTER ONE: INTRODUCTION

1.1 ﾿ Background  to the Study ﾿ 1

1.2 ﾿ Statement  of the Problem ﾿ 3

1.3 ﾿ Objectives  of the Study ﾿ 5

1.4 ﾿ Research  Questions ﾿ 5

1.5 ﾿ Research  Hypotheses ﾿ 5

1.6 ﾿ Significant  of the Study ﾿ 6

1.7 ﾿ Scope of the Study ﾿ 7

1.8 ﾿ Limitations  of the Study ﾿ 7

1.9 ﾿ Definition  of Terms ﾿ 8

CHAPTER TWO:  REVIEW OF RELATED LITERATURE

2.1 ﾿ Conceptual  Framework ﾿ 9

2.1.1 ﾿ Objectives  of Taxation ﾿ 10

2.1.2 ﾿ Features  of a Good Tax System ﾿ 11

2.1.3 ﾿ Other forms of taxes  and their legal background  in Nigeria ﾿ 12

2.1.4 ﾿ Principles  of Taxation ﾿ 19

2.1.6 ﾿ Payment  of Companies  Income  Tax ﾿ 21

2.1.7 ﾿ General Principles  of Taxation ﾿

2.2 ﾿ Theoretical  Framework ﾿ 26

2.2.1 ﾿ Theories  of Taxation ﾿ 26

2.2.2 ﾿ The Expediency  Theory ﾿ 26

2.2.3 ﾿ Socio Political  Theory ﾿ 27

2.2.4 ﾿ Expediency  Theory ﾿ 27

2.2.5 ﾿ Benefit Received  Theory ﾿ 27

2.2.6 ﾿ Cost of Service Theory ﾿ 28

2.2.7 ﾿ Faculty  Theory ﾿ 28

2.2.8 ﾿ Empirical  Review ﾿ 28

CHAPTER THREE:  METHODOLOGY

3.1      Research  Design                                                                                                        34

3.2      Area of Study                                                                                                            34

3.3      Types and Source  of Data                                                                                       35

3.4 ﾿ Data Analysis  Techniques ﾿ 36

3.5 ﾿ Model  Specification ﾿ 36

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION

4.1         Data Presentation                                                                                                       38

4.2      Descriptive  Statistics                                                                                                38

4.3      Trend Analysis                                                                                                          39

CHAPTER FIVE:  SUMMARY, CONCLUSION AND RECOMMENDATIONS

5 .1 ﾿ Summary  of Findings ﾿ 48

5 .2 ﾿ Conclusions ﾿ 48

5 .3 ﾿ Recommendations ﾿ 49

﾿ References ﾿ 50