ABSTRACT
Decision
–making is a class responsibility of an executive. It is expected of the
executive, by virtue of position or knowledge, to make decisions that have
significant impact on the entire organization, its performance and result.
Hence,
effective executive instead of making any decision ones such as those
associated with taxation. The term “taxation: as used in this work, simple
refers to a levy the government impose on properties and income of
corporations. This research work, therefore dwells on the “impacts of taxation
in business decision making. Using Nigeria Bottling company, Nigeria Brewery,
Alo Alumilium, Anamco, Emenite and United African company as the selected
companies. Above all, question arises, if the impact or effect of executive
decision-making has significant impact on matters relating to taxations. Since
the executives are the to give orientation on the importance of tax effect to
the entire organization as earlier stated however, executives should engage the
service of professional accountants and tax lawyers for tax planning purpose in
order to minimize their tax liability and still maintain primary goals or
objective of the business.
The
research study carried out by the researched, a comprehensive and adequate
appraisal on the impact of taxation on business decision-making, method of data
collection was the use of questionnaire. I administered 90 questionnaires which
were used in the analysis for the project work. For proper analysis, Chi-Square
was used to text the reasearch questions drawn by the researched from the
study. Recommendations made were that management of every company should
recognize tax planning and management as a very important function just like
other business function making organization.
Also
management should avoid ignoring tax effect completely on one hand, and on the
other hand allow tax consideration to distort the sound judgement that is
needed in all investment decisions. The essence is to enable tax saving
opportunities to be identified and utilized when they arise.
CHAPTER ONE
INTRODUCTION
1.1 Background to the study
Taxation can be variously defined. Fundamentally
however, it is a compulsory levy on income since the decision to pay tax is not
that of the tax payers. According to Amaechina (1998:9), taxation has been
defined as ‘a levy which a government imposes on the income of the citizens or
corporation in a state for which the government gives no direct benefit to the
taxpayer” or “a non-punitive but yet a compulsory levy by government on the
properties and income of individual and corporation”. The government cannot
build a school or a hospital personally for somebody because he has paid his
taxes, but the money realized is used to finance general government
expenditures.
Every tax imposed on Nigerian companies or
organizations needs continual interpretation of its specific application and
effect on the various transaction of the organization. the field of taxation
changes every moment or everyday as announced by the new ruling
Therefore, every organization needs to be at alert
to such changes.
A corporate tax is a tax on the profit of
corporations. When a corporation receives its revenue and deducts all its
costs, it comes out with profit before corporation income tax. The federal
government is taking about 30% of the profit of the big corporations, that is
corporations whose turnover are more than N1, 000, 000 (1 million) and have
lasted over 5 years of operation, while small companies in a preferred sector
such as manufacturing mining and agriculture whose turnover are not more than
(1 million) pay 20% of the profit. This concession lasts for a minimum period
of 5 years.
In this case, government development projects are
supported. Government equally adopts certain economic measures to boost the
economy. Among such measures are tax incentive, credits and reliefs which are
designed to increase the Productivity and accomplish other economic goals, but
invariable, these have a significant impact upon business decision. Once an
investor....
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Item Type: Project Material | Attribute: 78 pages | Chapters: 1-5
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