Relevance of Tax Revenue and Economic Growth in Nigeria (2008-2018) (Published)
This study aims at investigating the relevance of tax revenue in driving economic growth in emerging market economy context. . Using data extracted from central bank of Nigeria statistical bulletin for various years and auto-regression estimation model, our study documents the existence of significant and positive relationship between petroleum profit taxes (PPT), Company Income Tax (CIT) on economic growth in Nigeria. Our findings further reveal that Value Added Tax (VAT) and Custom –excise duty (CED) exert negative influence on economic growth. However, the study provide evidence that VAT and CED are insignificant in determining the economic growth in emerging market economy context with special interest in Nigeria This study provide further evidence that the higher the amount of tax revenue generated, the higher the level of economic growth in the economy. There is a recommendation therefore that strong institutional reforms are panacea to prevent leakages of revenue from VAT and CED.
Keywords: Company Income Tax, Nigeria economy, Petroleum Profit Tax, Value Added Tax, economic growth
Contemporary Issues in Corporate Income Tax in Nigeria – A Review of Precept and Practice (Published)
This study undertakes a review of contemporary issues in Corporate Income Tax practices in Nigeria against the background of Nigeria’s economy being generally characterized by low tax compliance and enforcement. All resident corporate entities are required to pay tax on all incomes or profits made by them from a source within and outside Nigeriato the federal government (CITA, 2007). However, if such corporate entities are resident outside Nigeria, only the income attributable to their operations in Nigeria is taxable. Low tax compliance is a matter of grave concern in many countries especially developing ones like Nigeria because it limits the capacity of their respective governments to raise revenues for development purposes. There is no gainsaying the fact that tax enforcement has become an essential aspect of tax administration in view of the ingenious ways corporate taxpayers undermine the revenue generation process by not remitting what is due to government (Gwangdi and Garba 2015). This study reviews extant provisions on tax reliefs and incentives applicable to corporate entities to facilitate voluntary compliance and recommendations are made on enhancing the successful implementation of theVoluntary Assets and Income Declaration Scheme (VAIDS) and improve the corporate income tax culture in order to enhance the gross domestic product
Keywords: Company Income Tax, Tax Compliance, and Tax Administration., the Economy
The Impact of Company Income Tax and Value-Added Tax on Economic Growth: Evidence from Nigeria (Published)
This study examined the impact of companies’ income tax, value-added tax on economic growth (proxy by gross domestic product) in Nigeria. Secondary time series panel data was collected for the period 2005 to 2014 from the Statistical Bulletin of the Central Bank of Nigeria (CBN). The study employed Ordinary Least Squares (OLS) technique based on the computer software Windows SPSS 20 version for the analysis of data, where gross Domestic product (GDP), the dependent variable and proxy for economic growth, was regressed as a function of company income tax (CIT) and value-added tax (VAT), the independent variables. The results of the analysis showed that both company income tax and value-added tax have significantly positive impact on economic growth. Based on the findings, the study recommended that government should strengthen the tax administration system to broaden the tax income, and embark on tax education to ensure voluntary tax compliance. The study also recommended that the tax authorities should employ qualified tax professionals who should be regularly trained and be retained in the tax administration system for efficient tax administration and collection.
Keywords: Company Income Tax, National Income, Value Added Tax, economic growth