Analysis Of Tax Effect On Investment Decision And Profitability (A Case Study Of Nigerian Breweries).

ABSTRACT

In business, there are decisions which include investments, and profits, which could help in the survival or death of such business this study borders around the analysis of tax effects on investment decision and profitability. It exposes us to both favourable and unfavourable methods of incorporating tax effects on our investment decisions. Data were gathered both primary, secondary and tertiary as the use of questionnaires were adopted. Also, works published and unpublished, which relate to the subject matter was also consulted. The analysis of the data were tested using the chi-square (X2) statistical technique resulting to the following findings: That tax consideration has significant effect on investment decision and that tax consideration has significant effect on the profitability of the organization. That corporate taxation and rules have a domineering effect on company profits, investments, and business decisions which result in management adopting measures to contain these tax effects. After these findings, the following recommendations were advance. That management of companies should understand that tax planning and management are important as other business functions. That company should avoid ignoring tax effects completely, however, not allow tax considerations distort the sound analyses and judgments needed for business decisions. Notable is the fact that tax planning is an important area of corporate profit and investment improvement because of the influence of tax.