1. Topics
  2. Business Administration
  3. The Effect Of Corporate Tax On The Profitability Of Business Organization

The Effect Of Corporate Tax On The Profitability Of Business Organization

ProjectStoc - 33 pages 4500 words 1083 views Seminar Degree Level Business Administration ₦2500 Naira ($6.58 USD)

This is a Premium work, paid access only

Register/Login to Access Full Work

1.0 INTRODUCTION 
Corporate tax is the most productive revenue source of income to the government than taxes from other sources.
Although people generally do not like paying income tax, in remains a duty no citizen can legally run away from. It is therefore the practice for tax authorities to endeavor to make people pay income tax without tears since it is not possible to pay with cheers.
Taxes can be one of the largest cash out flow that a company experience. The introduction of corporate tax on any business has gone a long way affecting the performance of the businesses. Many business frown at it because it is responsible for cutting into their overall yield. With the exception of industries which enjoy tax holdings to enable them complete effectively, other firms are required by the laws of the federal republic of Nigeria to pay their corporate taxes, when due. It is known that under the condition of economic stress and hardship, coupled with a functions effect of inflation, unemployment, price instability decreasing standard of living, it is only firm that can turn those threats and challenges into opportunities that can survive. This country has been a victim of these economic problems for some years now. It is established that this condition effect every one’s life, including the persons attitude and moral values every one seeks for a method whereby he could succeed at least in keeping soul and body together. A situation whereby daily with the increase in the cost of living, has made people to resort to both avoidance and evasion of taxes.
The business sector is not left out. The prevalent economic conditions in the country have continually affected their values and standards. Both the input and output of production are affected. Amongst other several problems associated with these since the business organization is an economic unit of the economy, any problem encountered by it will likely to affect the economy as a whole. Thus, disruptions in the business do not affect it alone but entire economy.
Note 
The sources of data for this work will be both primary and secondary sources. The related literature review will contribute mainly the secondary data.
It should be realized that the goal of any business is to make profit. Therefore is should also be realized that profit is said tobe made when total sales revenue exceed total operating costs. Considering the above, there arises the need for firms to strive and adopt all measures and techniques necessary and available to produce profitability. A reasonable care should be taken to cut cost and improve the product quality so as to receive the acceptance of the customers (market). But with the high corporate tax imposed on business organizations one aboud to ask whether these measures advance the profitability of the firms.
Therefore, it is true to say that most of the problems facing these businessmen can be reduced if the high and cut-throat corporate taxation is reduced. In this research work, it will be revealed that corporate tax reduces the level of foreign investment and participation in Nigeria, in spite of investment opportunities that abound includes, the dis-incentive to investment and the discouragement of savings. Generally high rate of tax deeply affects the capital structure of the firm.

In other to free them from the burden of high rate, they might declare inaccurate financial figures as profits. This reduces the tax accruable to the government because of these practices.
TABLE OF CONTENTS
Title Page ii
Certification iii
Dedication iv
Acknowledgement v
Table Of Contents vi

Chapter One
1.0 Introduction 1
1.1 Historical Background Of Companies Income Tax In 
Nigeria 4
1.2 Statement Of Problem 6
1.3 Need And Purpose Of The Study 7
1.4 Limitation Of Study 7
1.5 Scope Of The Study 9
1.6 Definition Of Terms 10

Chapter Two 
2.0 Review Of Related Literature 12
2.1 What Is Corporate Tax 12
2.2 General Features Of Company Income Tax In Nigeria 12
2.3 Forms Of Company Tax 15
2.4 Some Relevant Excepts Of Companies 
Income Tax Act And Amendments 16
2.5 The Incidence Of corporate Tax 19
2.6 Basic Of Assessment And Procedure 20
2.7 Tests Of Profitability 21
2.8     Tax Evasion And Tax Avoidance 24
2.9      Opportunities For Tax Evasion 25

Chapter Three 
3.0 Recommendation And Conclusion 26
3.1 Findings 27
Reference 29

Disclaimer: Note this academic material is intended as a guide for your academic research work. Do not copy word for word. Note: For Computer or Programming related works, some works might not contain source codes

CITE THIS WORK

(2014, 11). The Effect Of Corporate Tax On The Profitability Of Business Organization.. ProjectStoc.com. Retrieved 11, 2014, from https://projectstoc.com/read/4239/the-effect-of-corporate-tax-on-the-profitability-of-business-organization-5017
"The Effect Of Corporate Tax On The Profitability Of Business Organization." ProjectStoc.com. 11 2014. 2014. 11 2014 <https://projectstoc.com/read/4239/the-effect-of-corporate-tax-on-the-profitability-of-business-organization-5017>.
"The Effect Of Corporate Tax On The Profitability Of Business Organization.." ProjectStoc.com. ProjectStoc.com, 11 2014. Web. 11 2014. <https://projectstoc.com/read/4239/the-effect-of-corporate-tax-on-the-profitability-of-business-organization-5017>.
"The Effect Of Corporate Tax On The Profitability Of Business Organization.." ProjectStoc.com. 11, 2014. Accessed 11, 2014. https://projectstoc.com/read/4239/the-effect-of-corporate-tax-on-the-profitability-of-business-organization-5017.