The Effects Of Corporate Tax On The Profitability Of Business Organization

THE EFFECTS OF CORPORATE TAX ON THE PROFITABILITY OF BUSINESS ORGANIZATION

Abstract

This term paper/project on “THE EFFECT OF CORPORATE TAX ON THE PROFITABILITY OF BUSINESS ORGANISATION” is clearly written and structured, giving the general public, corporate entities, and individuals the chance to view and comprehend the significance and advantages of the effects of corporate tax on the profitability of business organization.

The first chapter offers a pertinent introduction that details how corporate taxation came to be in Nigeria.

The second chapter, however, offers a useful framework for examining the impact of taxes on business profitability, tax evasion and avoidance, and tax revenue generated by the government.

Finally, chapter three offers a summary, a decision, and suggestions.

Knowing full well that reading it in detail will be very helpful to readers, the reader must understand that the Federal Government of Nigeria generates income through taxes to finance its expenditures and supply of infrastructural facilities and services.

Text Of The Chapter

front page

Acceptance page

Dedication

Acknowledgement

Abstract

the contents table

Chapiter 1

Introduction, version 1.0

1.1 Purpose of the investigation

1.2 Study’s domain of investigation

1.3 Definition of key words

Apartment Two

2.0 Review of the Literature

2.1 How taxes affect a company’s profitability

2.2 Details of the impact

2.3 Discourage a company’s cost-cutting

2.4 Taxation that is paid twice

2.5 An increase in product and commodity prices

Tax evasion and avoidance are both illegal.

2.7 Tax revenue is what the government receives.

Section Three

3.0 An Overview, Summary, and Recommendation

3.1 Summary of Results

3.2 Conclusion

The 3.3 Recommendation

Bibliography

Chapiter 1

Introduction: 3.0

This article on “effect of corporate tax on the profitability of business organizations” highlights both the favorable and unfavorable effects that taxation has had on the profit margins of commercial enterprises.

We should briefly explore the history of corporate taxation in Nigeria in the meantime. The fact that taxes is a global practice explains why Turner and Hunt described it as a common method of generating income (Okoye 1998:7). In light of this, Benjamin Franklin is credited with saying that only death and taxes are certainties in this world. In the context of Nigeria, Lord Luggard, then the high commissioner for Northern Nigeria, instituted the country’s first income tax in 1904 by passing the first income tax statute. The colonial government in Nigeria, like all previous colonized governments in Nigeria, enacted a number of taxes to raise money from the populace for its operations. In that case, taxes by the government wants to expand the system of exploitation of the colonial people.

Taxation was an unavoidable legacy that the post-colonial republics continued as one of their sources of income. The profit tax was the first type of corporate tax. This crucial stage, which entails taxing corporations at a rate distinct from that of individuals and union corporate enterprise, was followed by the implementation of a capitalist system during the Second World War.

As far as we are aware, Britain introduced the business tax in 1965. The fact that this tax only recently became effective is explained by the fact that corporations were almost nonexistent in Nigeria until well after World War II. Due to its recent implementation, it has not garnered the same level of public attention as personal income tax.

However, as the economy has grown, the business sectors have significantly grown, which has sharpened the focus on the issue of taxing corporate income and at utilizing a possible source of revenue.

There were over a thousand (1000) businesses that had to pay corporate income tax. Compared to only roughly 350 in 1960, there were more people in 1963. Comparing these numbers to the large number of corporations that are currently in operation, we currently have roughly three thousand companies, which