THE IMPACT OF TAXATION LAW ON INVESTMENT ACTIVITY IN NIGERIA (A CASE STUDY OF GLOBAL SOAP AND DETERGENT INDUSTRY LTD ILORIN)
This research work is focused on the impact of taxation law on in vestment activity in Nigerian a case study of Global Soap and Detergent Industry Ilorin the study appraises the significance of a taxation on private industries towards the collection or attainment of the generation of revenue by Nigerian government agencies. This project work will also look into the development and weakness or challenges of VAT value added tax by the Nigerian industries. Tax are the most important source of government revenue which study the impact of taxation Jaw on investment activities in Nigeria could be extensive since there are lot of different business activities in Nigeria. Such as manufacturing company, wholesales, retañ banking insurance, investment, financip sh/p/n7. Literature review is an art of going through all available sources of information on ones chosen research topic with a view to either taken by scholars. Taxes generally have a effect on the profitability of investment tack c/ark said an understanding of some part law is therefore essential to maximizing investment profit. Th .; er endeavor to give an understanding of tax laws affecting investment decision. Research methodclcc. a
of data collection is the major source of information used in this study was published secca-. - from the regulation and edited text.
This research work will also look into the taxation investment insecurities, municipal ccz - .
way of improving public facilities such as schools, playground, park etc the research ,‘ - of management expenses of investment companies because in any company there ms: -
will be controlling, directing, organizing and supervising such company for the improveme: a:: - - - the company. This work will also investigate on the historical background of personal incce
and the reform of the taxation before the desisting current system. Generally this work wiii a : - : - z - the various institute of government uncharged of generating tax from both individual and compar structure of taxation imposed by the government on private individual and companies. Though - - - recommendation of project shows the duty of government to provide incentive and tax benefits to the private and public sector. Also reliable infrastructures and conducive economic enviroiment that would give inspiration to new investors while assisting old one’s to perform better.
TABLE OF CONTENT
Table of content vii
1.1 Background of the study V 1
1V Problem of the study 2
1.3 Research question 3
1.4 Research hypothesis 4
1.5 Plan of the study 4
1.6 Objective of the study I 2 5
1.7 Significant of the study c 6
1 .8 Research methodology V 6
L9 Scope of the study - /. 7
1.10 Definition of term 8
CHAPTER TWO LITERATURE REVIEW
2.1 Preamble 10
2.2 Philosophy of Nigeria taxation 15
2.3 Evaluation of Nigeria taxation 17
2.4 Effect of taxation on cash flow return on investment and research in practical 19
2.5 Effect of taxation on personal income 22
2.6 Personal income gain - 24
3.1 Methodology and source of data 27
3.2 Interview on taxes from account section of Global
Soap and Detergent Industry Limited Ilorin 28
CHAPTER FOUR V
PRESENTATION ANALYSIS AND INTERPRETATION OF DATA
4.1 Brief historical development 32
4.2 Organization structure! chart 35
4.3 Presentation analysis and interpretation 36
4.4 Management expenses of investment companies 37
4.3 Federal income personal tax 38
4.4 Federal estate tax 39
4.5 Federal estate and gift taxes 49
SUMMARY CONCLUSION AND RECOMMENDATION
5.1 Summary 50
5.2 Conclusion 50
5.3 Recommendation 51
1.1 BACKGROUND OF THE STUDY
Taxes are the most important source of government revenue. A tax can be defined as a compulsory levy imposed by a public authority one in comes, consumption and production of goods and services. Taxes are levied on personal incomes (consisting of salaries, business profit interest income divided royalties etc) company profits, petroleum profit capital gains and capital transfers.
For a payment or collection to be considered a tax, it should posses the following characteristics.
a. It is a compulsory payment imposed by the government on the people residing in the country. Since it is a compulsory leery, any person who refuses to pay a tax is liable to punishment. A levy the payments of which is voluntary is not a tax buy a contribution or donation.
b. A tax must be for common use. It must be for common good, the government uses the revenue collected from taxes for providing hospitals, schools, public utility services tc. which benefits every citizen of the nation.
c. A tax is not levied in return for any specific services rendered by the government to the taxpayer. An individual cannot ask for any special benefit from the government in return for the tax paid by him or her.
1.2 OBJECTIVE OF THE STUDY
The objective of writing this project work is to view the impact of taxation law on investment activities in Nigeria.
In view of this fact, the study will take a look at whether business activities management recorded nr prepared their financial statement as stipulated by the tax law.
In the course of the study the researcher I shall also take a look at the concept of tax law in Nigerian and also make suggestions and recommendation on taxation in Nigeria.
1.3 SIGNIFICANCE OF THE STUDY
This study would help in enlightening manager’s accountants, auditors, Business consultants, tax collectors financial manager, government (federal, state and local joint tax board state internal revenue board and federal board of Inland Revenue board, about the impact of taxation law on investment activities in Nieria.
It will also give the likely suggestion solution to the problem-encountered in taxation law and also highlight the necessary improvement on taxation law on investment activitieNigeria.
1.4 SCOPE OF THE STUDY
The study of the impact of taxation laws on investment activities in Nigeria could be extensive since there are lot of different business activities.
In Nigeria such as manufacturing wholesales; retail, banking insurance, investment, financing, shipping, road and transportation of tax payment affect the firm in an industry.
The extent of this research is limited to the study of taxation and effect on a company or two company’s activities in an industry. This impact on company is typical of others and industry.
This project research work also examines the impact of pay-as you-earn system of tax collection af purchasing power of industry in pay employment and small trades concern.
Methods’ sending of some of the tax liabilities has also been considered in this course o for the research work.
Government effort in providing a conductive economic environment that would inspire nev.
encourage existing one towards a better performance through the provision on incentive and tax be’-a-: a covered in this project.
1.5 RESEARCH METHODOLOGY
The method of the study is a very crucial aspect in research work. However, several research methods, are open for the use of the researcher, but the choice of method will assist in evaluating the adequacy and efficiency of the research finding and conclusion. Therefore, selecting a proper method of investigation into a problem is a key consideration for due to the fact that the topic being studied is not the type that every organization appreciates its importance achievement of organization objectives. For this reason, the researcher as a student decided to use ce’sc a interview in gathering the secondary data required for the desired result.
1.6 DEFINITION OF TERMS
Tax: A tax can be defined as a compulsory levy imposed by the government of a nation on the ‘cores. consumption and production of goods and services of the citizen.
Law: It is a system of rules that a society or government develops in order to deal with business agreement. social relationship and crime.
Investment: It is the activity of buying shares or putting money into a bank account in order to obtain a return inform of divided or interest.
Activity (IES): This can be defined as the services that required certain number of time and skill..