Appraisal of Corporate Tax Management on Performance of Non-Financial Firms in Nigeria

Abstract

The main objective of this study is to examine the effect of corporate tax management on performance of Non-financial firms in Nigeria. The specific objectives were to ascertain the factors influencing corporate tax management on the performance of non-financial firms in Nigeria, to determine how corporate tax management affects the annual income of non-financial firms in Nigeria, to access the effects of corporate tax management on the work output of non-financial firms workers in Nigeria and to determine the extent of the relationship of corporate tax management and the performance of non-financial firms in Nigeria.The population of this study comprises of non-financial firms in Oyo state, Nigeria. Random sampling technique was used and the sampling size for the study was ten firms. In carrying out this study, the researcher made uses of secondary sources of data. The period of study was from 2011 to 2021. Both descriptive and inferential statistical tools were employed in this study. The result shows that a unit increase in EQT Shows negative contribution of 350.48 to NP, a unit increase in DRT contributed 109.54 decrease to NP. PTI indicated a positive contribution of11.72 and TAS shows a positive contribution of 1.66to changes in NP. More so, two of the four explanatory variables were significant at 5% in explaining variation in NO. These are EQT with (t=0.018 and P=0.004) and TAS with (T = -0.28 and P=0.0000).It is now concluded that taxation has positive significant corporate tax management and performance of Non-financial firms in Nigeria. From the results obtained, there is no doubt that tax is a key indicator to consider when discussing the economic development of Nigeria. It is a major source of revenue for the Federal Government to meet their statutory obligations for the wellbeing of the citizens.

Keywords: Tax, Corporate Tax Management, Performance, Non-Financial Firms

DOI: 10.7176/RJFA/13-14-01

Publication date:August 31^st 2022