Effect of Goods and Services Tax on Capital Expenditure in Nigeria (Published)
This study is an empirical examination of the effect of goods and services tax on capital expenditure in Nigeria for the period 2005 – 2020. The specific objectives are to ascertain the effect of value added tax (VAT) on capital expenditure (CAPEX) and secondly to determine the effect of Customs and Excise Duties on capital expenditure (CAPEX) in Nigeria. The study is theoretically linked to Benefit Received Theory. The study was an ex-post-facto research which made use of secondary data obtained from the Central Bank Statistical Bulletin. The study employed descriptive statistics and graphical representation using E-Views 10 software to check for the trends, linearity or otherwise of the data. Regression model was applied in determining the extent of the effect exerted on capital expenditure (CAPEX) by value added tax (VAT) and custom and excise duties (CED). The result of the analysis revealed that the duo independent variables which are value added tax and custom duties had a significant and positive effect on capital expenditure. The implication of this finding is that the capital expenditure has been influenced significantly by value added tax and customs duties. The study concluded that a long-run relationship existed among VAT, CED and capital expenditure. It is therefore recommended that revenues generated from VAT and CED should be invested and allocated adequately in major domestic sectors of the economy of Nigeria so as to expand the revenue sources of the nation.
Citation: Iyidiobi F.C., Ugwuanyi U.B., and Ezugwu C.I. (2022) Effect of Goods and Services Tax on Capital Expenditure in Nigeria, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 10, pp.1-13
Keywords: CAPEX, CED, Expenditure, Service, Tax, VAT, goods
A Conceptual Review of Tax Compliance Studies of Some Selected Developing Countries (Published)
It is pertinent that sustainable tax compliance is achieved only if the tax policy takes the main determinants of tax compliance into consideration. Meanwhile, tax compliance has been seen as one of the critical tax administration issue particularly amongst the developing countries of the world. In that regards, scholars have contributed immensely in studying the causes or determinants of the phenomenon based on some prevailing factors associated to economic, social and psychological conditions of our society. And the factors are basically linked to some suggested theories. Nevertheless, the study premised on reviewing some related studies conducted amongst the developing countries of the world based on thematic and chronological approach, in order to know the most commonly identified determining factors of tax compliance between the periods of 1998 to 2022. it is imperative to note that the major determining factors extracted from the reviewed literatures are basically ranked from the most commonly identified to the least identified as: taxpayers attitudes and tax fairness perceptions were frequently identified six times each, secondly, tax payers knowledge, perceived behavior and subjective norms were identified four times each, thirdly, sources of income, complexity of tax laws, ethical sensitivity and religiosity knowledge were frequently identified three times, and lastly, perceive tax system and perceived usefulness were frequently identified from the literatures two times each respectively. Therefore, the study concludes that the commonly identified determining factors of tax compliance in the developing countries based on reviewed literature are taxpayer’s attitude and fairness perception. Hence, other empirical studies may need to be conducted to justify the position of this study.
Citation: Idris Mohammed, Lateef Olumide Mustapha, Adamu Lawal Bello (2022) A Conceptual Review of Tax Compliance Studies of Some Selected Developing Countries, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 7, pp.53-62
Keywords: Compliance, Tax, conceptual review, developing countries
Selected Components of Tax Revenue and Educational Development in Nigeria (Published)
This study investigated the relationship between some selected components of tax revenue and educational development in Nigeria for the period 2010 to 2018. The study adopted education tax and value added tax as the independent variables, while educational development taken as government spending on education (excluding recurrent expenditure) was used as the dependent variable. Secondary data was collected from the CBN, FIRS, and MOE. The data analysis technique adopted for the study was the multiple regression analysis using the Ordinary Least Square (OLS) method. The results revealed that there was positive relationship between value added tax, education tax and education development. However, the relationship was not statistically significant with the implication that the effect of the selected tax revenue components on educational development was weak. Based on the findings of this study, it was concluded that the contribution of education tax to the development of the education sector is not having the desired effect on the sector. Furthermore, value added tax revenue as expected is not an important contributor to education development. It is suggested that more revenue from various tax funds be channeled to the education sector as human capital development is key to national development. The study thus recommended that the proportion of value added tax revenue channeled towards education development should be increased as deficits in education development are very high. It is also recommended that the education tax be increased from the present 2% to 5% in order to contribute more significantly to education development.
Keywords: Development, Education, Revenue, Tax, Value added
The Effect of Tax Audit on Productivity of Internal Revenue Service: Cross River State Experience (Published)
This paper focused on the effect of tax audit on productivity of Cross River State Board of Internal revenue service. The result of the study showed that tax audit strategies have direct insignificant relationship with productivity. However, tax audit is employed by the relevant tax authority (RTA) to achieve target revenue and also reduces the problem of tax evasion and avoidance. The study further revealed that tax payers do not usually cooperate with tax audit personnel during audit. That the relevant tax authority should put policies in place that would enable tax payers to cooperate with tax audit personnel during audit exercise.
Keywords: Audit Quality, IRS, Productivity, Tax
Effects of Tax Audit on Tax Compliance in Ekiti State, Nigeria (Published)
The paper examined the effects of tax audit on tax compliance in Ekiti State, Nigeria. The study employed primary data where 60 questionnaires were randomly distributed to Federal Inland Revenue Service and Ekiti State Board of Internal Revenue Service Staff. Multinomial Logistic Regression analysis was employed as the estimation technique. The findings revealed that the multinomial logistic regression model fitting information was significance with the p-value of 0.040 which implies that the tax audit can influence the tax compliance. Also, the likelihood ratio tests of multinomial regression showed that tax accuracy and current returns have not been significantly affecting tax compliance, that tax law has effect on tax compliance while tax procedure has no effect on tax compliance during the study period. The study concluded that tax audit is yet to make any substantial effect on tax compliance. It therefore recommended that the relevant tax authority at all levels should improve the standard of tax audit employed for effectiveness and efficiency and equally, relevant tax authority should provide a policy that would allow the tax payers to cooperate during the period of tax audit.
Keywords: Government Revenue, Tax, Tax Audit, Tax Compliance
Effects of Value Added Tax and Custom Duties on Revenue Generation in Nigeria (2000-2016) (Published)
The study examined value added tax and customs duties on revenue generation in Nigeria. Secondary data was sourced from Federal Inland Revenue Service (FIRS) ranging from 2000 to 2016. Autoregressive Distributed Lag (ARDL) and Granger causality tests were used as the estimation techniques. The findings of the study revealed that the F-statistics value was 2.883868 which is lesser than both the lower bound and the upper bound values of 3.79 and 4.85 respectively at the 5percent level of significance which implies that there is no long-run relationship among value-added tax, customs duties and revenue generation. It was equally revealed that there is no causality among value-added tax, customs duties, and revenue generation. The study concluded that value-added tax and customs duties no significant effect on revenue generation and there is no long-run relationship among value-added tax, customs duties and revenue generation in Nigeria during the study period. Thus, it is recommended that the fiscal policy should discourage tax avoidance by emulating measures for compliance of value added tax and customs duties
Keywords: Custom and Excise duties, Revenue Generation, Tax, Value Added Tax
Impact Of Company Income Taxation On The Profitability Of Companies In Nigeria: A Study Of Nigerian Breweries. (Published)
This study ascertains the impact of taxation on the profitability of companies in Nigeria. The study used secondary sources of data and a time series econometric technique with an error correction model tested the variables most likely to impact on profitability of companies in Nigeria. The study revealed that the level of company tax has significant effect on the profitability, that company income tax (CIT) has significant effect on profitability. We conclude that the positive and significant relation between the profitability and the taxation explanatory variables indicates that policy measures to expand tax revenue through more effective tax administration will impact positively on growing the company’s profitability. It is therefore recommended that Government should expand the tax yield through improved tax system administration. This is because of the positive danger of over-reliance on crude oil export receipts to drive the economy. There should be more improve in the effectiveness of taxation by ensuring proper and equitable tax assessment and timely collection.
Keywords: Breweries, Economy, Income, Profitability, Tax
Corporate Governance, Shareholders Wealth Maximization and Tax Avoidance (Review Completed - Accepted)
Tax avoidance is a common problem among many nations I the word, especially the developing and third world countries. Most citizens see tax payment as very offensive, and seek all means to avoid tax liabilities. Nigeria is not exempted from this economic menace. In spite of the several tax holidays enjoyed by firms in Nigeria, most firms have resorted to creatively avoid tax under the disguise of shareholders wealth maximization. This act is seen by the researchers as a corporate governance factor because the provision of bonus schemes by shareholders for managers for abnormal wealth maximization had justified the act of tax avoidance in the Nigerian corporate world.
Keywords: Avoidance., Corporate Governance, Shareholders, Tax, Wealth Maximization