THE EFFECT OF CORPORATE TAX ON THE PROFITABILITY OF BUSINESS ORGANIZATION
TABLE OF CONTENT
CHAPTER ONE
Introduction 1
1.1 Background of the study 1
Statement of problem 2
Purpose of the study 4
Significance of the study 4
Definition of terms 5
CHAPTER TWO
Review of related literature 8
2.1 The origin of corporate tax in Nigeria 8
Why the corporate tax 10
Corporate tax as a tool of checking inflation and deflation.13
Government effort towards to check taxation 14
Cannons of taxation 16
The effect of taxation on economic activities 18
The incidence of taxation 19
The effect of corporate tax on the profitability of business organization. 20
CHAPTER THREE
Findings 22
Conclusion 23
Recommendation 23
Bibliography 25
Journals 26
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Prior to the colonial era in Nigeria, taxes were paid from produce, cowries, etc to the chiefs in the form of tribute. In the Northern region, cows were used to pay taxes.
The legal history of Nigeria tax system can be traced to Nigeria native custom and tradition, where in spite of the denial of the name law to customary by John Austin. Under the native customs and traditions, Nigerians cheerfully pay their taxes in kind by rendering free services to the community in which they lived, the few tax defaulters were punished by erecting community building, such as the manor house at Iseyin or by slaughtering their fattest cattle for the benefit of the community.
Customary law is based only on those traditions and customs of the people which can be enforced by the local community or the Oba. The three major tax laws were passed in the country in 1961 immediately after independence. They are the Federal Income Tax Act (FITA) Income Tax Management Act (ITMA) and Company Income Tax During this time, the state had the legal basis to impose and collect taxes in the areas of jurisdiction until 1979, when the Federal Government amended the company Income Tax Act (CITA). The imposition of tax is in the concurrent legislative list. Federal Government reversed the exclusive right to impose tax on both persons and companies. However, states are allowed to collect tax in the way they deemed appropriate.
STATEMENT OF PROBLEM
Corporate tax from the promulgation of company income tax act (1979) has been a thorn on the flesh of the government. This is because a reasonable percentage of the federal government revenue is derived from the company income tax
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