IMPACT OF MULTIPLE TAXATION ON BUSINESS SURVIVAL IN NIGERIA
REVIEW OF RELATED LITERATURE
2.2. CONCEPTUAL REVIEW
Taxation is one of the major fiscal policies the government of any nation such as Nigeria can use to achieve economic stability and in the financing of
capital expenditure. Various taxes are levied upon the income, wealth or gain of an individual, family and business firm by the government for the purpose
or benefits of the general public.
Tax by a simple definition is a financial charge or other levy imposed upon a tax payer which could be an individual or a legal entity from the point of view
of the student researcher by a state such that failure to pay is punishable by law. Thus, taxation cannot be regarded as a voluntary payment or donation but
an enforced contribution exacted pursuant to legislative authority. In modern taxation system such as Nigeria, taxes are levied, in money which could be
use for myriads of functions or purpose such ay a expenditure on public order, protection of lives and property, economic infrastructure cures such as
roads, public works, social engineering and the operation of government itself (Carrol, et al 2000).
The taxes collected by the government no doubt emanate from varying sources ranging from personal income tax, company income tax, capital gain tax,
property tax, education, tax, task but to list a few.
The Nigerian government in attempt to raise revenue and enhance the economic development of Nigeria has subjected many firms to multiple taxations
which they are mandated or made compulsory to pay irrespective of the sector the business firms operate or else take the wrath of the law A survey carried
out by the Manufacturers Association of Nigerian (MAN1) and (Centre for International Private Enterprise ICIPE) identified multiple taxation as the bane of
private sector business growth in Nigeria (Anyamvu, 2012). The survey established the relationship between multiple taxations in the pilot state across
the three tiers of government and re-airmed
its negative erects to private sector growth and businesses in Nigeria.
According to the survey, it was established that multiple taxation could lead to divestment as well as jeopardize foreign direct investment coming into
Nigeria, while adversely aecting
the Competitions of existing businesses and their survival, Moreover it was also established that currently most businesses in Nigeria consider the tax environment as
unfriendly and disincentive to business, stressing that it engenders loss of man hour to both the government and private businesses.
According to Osagie (2012) tax environment in Nigeria especially the policy on multiple taxation increases the cost of doing business in the country. As a
matter of fact, some business including manufacturing companies have shut down production while in some cases, have relocated their factories to other
West African countries which are considered to be more investment friendly. Against this back drop, this project examines the erects of multiple taxation on business survival in Nigeria