Creative Accounting and Corporate Failures on Nigeria Listed Firms (Published)
This study investigated the link between creative accounting and corporate failures in Nigeria. Four objectives were set to guide the study visa viz: to investigate the effect of discretionary accrual management; real earnings management; income smoothing and tax avoidance on corporate failure of companies listed on Nigerian exchange group Plc. correlation research design was adopted and sampled of twenty companies was purposively engaged from the total of one hundred and seventy firms listed on Nigerian exchange group. The study covered the periods 2015 to 2022 while the secondary data used for the study were generated from annual reports and accounts of the firms sampled. Analysis was done using descriptive statistics, correlation analysis and regression estimation as was aided by e-view 9. Result from the empirical analysis indicates that all the independent variables of the study (discretionary accrual management, real earnings management, income smoothing and tax avoidance) have inverse and no significant relationship with corporate failures on Nigeria listed firms. The implication of the study therefore is that, although creative accounting has retarding effect on corporate failures, but it’s not strong enough to have caused the corporate collapse witnessed in Nigeria. The study then recommends amongst others that professional Accounting bodies like ICAN should intensify their efforts to promote ethical accounting practices among practitioners through regular training, workshops, and awareness campaigns.
Keywords: Income Smoothing, corporate failure, discretional accrual management, real earnings management, tax avoidance
Fairness of Tax Laws and Regulations Influence on Tax Compliance in Tanzania: Lessons from SMEs in Arusha Tanzania (Published)
The purpose of the study was to assess the influence of fairness of tax laws and regulations on tax compliance in Tanzania taking SMES in Arusha city as a case study. Mixed approach and survey design were employed to conduct this study, where systematic and purposive sampling techniques were used to select 100 respondents to take part in the study. It was revealed that there is positive and significant influence on tax compliance. An adjusted R2 =59.6% while F(8, 87) =28.86 P < 0.000 were revealed, implied that fairness of tax laws and regulations had positive and significant influence on tax compliance in Tanzania. It was recommended that tax legal framework in Tanzania should be improved; to include making assessment basing on reality of business in Tanzania and eliminates complexity in tax payment processes.
Citation: Maseko F.E and Sawe I E. (2022) Fairness of Tax Laws and Regulations Influence on Tax Compliance in Tanzania: Lessons from SMEs in Arusha Tanzania, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 11, pp.52-68
Keywords: Tax Compliance, Tax Evasion, fairness of tax laws and regulations, tax avoidance
Strategy to close tax gaps created by tax avoidance and tax evasion in Nigeria: an overview (Published)
The increase in the tax avoidance and tax evasion among the taxpayers has become a subject of discourse among the tax authorities and other stakeholders across the globe. Tax evasion and tax avoidance, a problem which seems to have defied solution, had been deviled the tax system right from colonial times. While some had blamed the situation on tax authorities for not living up to expectation with regards to tax administration, others attribute it to the unpatriotic attitude of taxpayer. In view of the above, this paper examines the strategy to close tax gaps created by tax avoidance and tax evasion. Contents analysis research design was adopted by reviewing the available literature in the field of this study. It was discovered that Voluntary Asset and Income Declaration Scheme, effective communication of tax benefits to the taxpayers enhance voluntary compliance with payment of tax by taxpayer. Equitable distribution of amenities without using sentiment ,religion, tribe among other things will also increase tax revenue while ,transparency and accountability, consistent updates to the taxpayer’s registry, equitable distribution of income and use electronic channels for simple transactions were also identified as part of strategies to close the gap created by tax avoidance and tax evasion.
Citation: Olufemi F. Oladejo (2021) Strategy to close tax gaps created by tax avoidance and tax evasion in Nigeria: an overview, European Journal of Accounting, Auditing and Finance Research, Vol.9, No. 7, pp.55-63
Keywords: Nigeria voluntary compliance, Tax Evasion, Taxpayer, Voluntary Asset and Income Declaration Scheme, equitable distribution of income, tax administration, tax avoidance, tax revenue taxpayers’ registry