ABSTRACT

The norms that manufacturingfirms view tax laws as hostile and depressing on their activities and performance triggered this research on impact ofcompany income tax on the performance oflisted manufacturingfirms. The research formulated three specific objectives; to examine the . impact ofthe company income tax on profit after tax ofNestle Nigeria PLC, to investigate the impact ofcompany income tax on return on assets ofNestle Nigeria PLC, to examine the impact of company income tax on return on capital employed ofNestle Nigeria PLC. Thus, research questions and research hypotheses were structured in accordance with the specific objectives. In a bid to achieve a meaningful research study work, this research will review related literatures on the impact of company income tax on the performance oflisted manufacturingfirms. Which were sub-divided into three subheadings such conceptualframework, theoreticalframework and empirical review. However, in the quest to perfect this research; ex-facto research design was adopted were data was sourced secondarily through annual report ofNestle Nigeria PLC which serves as the instrument. The data sourced covered the range of2007 - 2017. Simple regression statistical technique based on E-view 8 was used toanalyze the data collected. Thus, the followingfindings were made based on the analysis that company income tax has a significant impact on profit after tax ofNestle Nigeria PLC, that company income tax has a significant impact on return asset ofNestle Nigeria PLC and that company income tax has a significant impact on return capital employed ofNestle Nigeria PLC.Sequel to the findings and conclusion, the research made the following recommendations that That Nestle Nigeria PLC and other manufacturing companies should employ the services oftax experts to aid them in tax planning in other to reduce the net tax payment so as to increase theirfinancial profitability. That Nestle Nigeria PLC and other manufacturing companies should increase their asset size and ensure efficient use ofthose assets to reflect in the production turnover ofthe companies. Finally, it is recommended that government should reduce corporate tax rate because a reduction in the corporation tax rate will increase the income to shift to profits which will directly has an effect on the return on capital. Thus, investors are encouraged through increase in dividendpaid out.