Abstract

The objective ofthis study is to investigate the impact oftaxation on economic development of Nigeria proxy by the gross domestic product (GDP). The study further looked at the relation between companies income tax (CIT), petroleum profit tax (PPT) and gross domestic product in vost-IFRSperiod. Secondary data were sourcedfrom Central Bank ofNigeria (CBN) Statistical Bulletin, Federal Inland Revenue Services (FIRS) and other relevant government agencies for the period covered in the study, 1981-2016. The data were analyzed using econometric model with the aid ofE-views 8. The results show that a strong positive and significant relationship exist between economic development and Tax variables used. It also documented a decline in tax revenue in post -IFRS period. The study further revealed rise and fall in tax revenue and economic development occasioned by corruption,tax evasion, 2008 economic meltdown, dysfunctionalities in the income tax system, and loopholes in tax laws and inefficient tax administration. However, it was recommended that the economy should be diversified to enhance revenue base ofthe country, to rid corruption from the system, investing in economic activities that will generate jobs, harmonize our tax laws and administration to acceptable global standard. Also checkmating the activities of corporate bodies in their tax sheltering through accounting choices was also recommended. Key Words: Taxation, economic development, Nigeria, post-IFRS, GDP, Corruption