THE EFFECTS OF CORPORATE TAX ON THE PROFITABILITY OF BUSINESS ORGANIZATION

THE EFFECTS OF CORPORATE TAX ON THE PROFITABILITY OF BUSINESS ORGANIZATION

ABSTRACT: This study effect of corporate tax on the profitability of business organizations shows the result of corporate tax on company’s profit. It allows the public and corporate bodies to view and understand the importance and benefits of paying tax out of their profit. Income tax was first introduced in 1904 by Lord Lugard when he was the high commissioner for Northern Nigeria. Taxation was defined by many people such as Agyes, A.K 1983, Amaechina, P.U. 1995 e.t.c. The information for the study was collected using both primary (questionnaire) and secondary data (internet). A population of 200 was assumed and a sample of 133 was gotten using Yaro Yamines formular. All the responses gotten was analysed using tables and percentages. it was found out that there is no free flow of information about corporate tax. However, public enlightenment should be organized by the government so as to explain the need for companies to pay tax promptly and adequately, emphasizing on the benefits they stand to get.

TABLE OF CONTENTS

CHAPTER ONE

1. INTRODUCTION                                              
   1. Background of the Study                                         2
   2. Statement of the Problems                               6
   3. Objective of study                                           7
   4. Research Question 8
   5. Significance of the study                                          9
   6. Scope of the study                                           10
   7. Limitation of the study                                     11
   8. Definition of Terms.                                                11

CHAPTER TWO

1. LITERATURE REVIEW
   1. Effects of Tax on Company’s profit                            13
   2. Effects in details                                              14
   3. Double Taxation Argument                               15
   4. Discouragement of Company’s Investment          17
   5. Increase in Price of Shares and Commodities              18
   6. Tax avoidance and evasion                                18
   7. Revenue which Government Generate from Tax   23
   8. Payment of Unnecessary fees to Influence some of the corrupt Relevant Tax authorities.                           29

CHAPTER THREE

1. RESEARCH DESIGN AND METHODS
   1. Research Design                                              31
   2. Area of Study                                                  31
   3. Population Size                                                31
   4. Sample size                                                    32
   5. Research Instrument                                        35
   6. Validity and Reliability of Research Instrument     35
   7. Source of Data                                                36
   8. Method of Investigation                                    37

CHAPTER FOUR

1. PRESENTATION AND ANALYSIS OF DATA

4.1 Presentation and analysis of result                       38

CHAPTER FIVE

1. SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
   1. Findings                                                         47
   2. Conclusion                                                      49
   3. Recommendations                                           49

Appendix

LIST OF TABLES

Table 3.1Population Distribution Table33

Table 4.1 Perception of staff on the benefit of corporate taxation.                                                 39

Table 4.2 Perception of staff as regards to the relationship between unwillingness of corporate organization and  ignorance of corporate tax benefits.                                                                    41

Table 4.3 Perception of staff to the negative way corporate tax  influence their profit.                          43

Table 4.4 Perception of staff on the attainment of First Bank of  Nigeria PLC. objectives.                       45

CHAPTER ONE

1. INTRODUCTION

In Nigeria, one of their major problems is the problem of generating income through taxation. Since it is known to everyone that taxation is a way of generating income to the government, it is not suppose to be a problem especially in corporate taxation.