Full Project-THE EFFECT OF COMPANY INCOME TAX ON NIGERIA ECONOMY

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ABSTRACT

This study investigated the impact of company income tax revenue on economic growth in Nigeria. This study used secondary data which was subjected to econometric analysis. The study made use of the judgmental sampling technique. The Central Bank of Nigeria (CBN) and Federal Inland Revenue Service (FIRS) have been chosen for the purpose of this study. The study employs the Ordinary Least Square Regression Technique in the analysis of the secondary data obtained from the Central Bank of Nigeria statistical Bulletin Using Eviews. The result of the regression analysis reveals company income tax was statistically significant at 5% level of significance using F-statistics and other statistical parameter. The study concludes that company income tax has significant impact on economic growth and living standard in Nigeria. The study hereby recommended tat; There should be stringent penalty imposed on any corporate body who indulge in any form of tax malpractices irrespective of states; Efforts should be intensified by the government towards increased collection of tax revenue; This can be done through blocking all loopholes in our tax laws as well as bringing more prospective tax payers into the tax net (especially the informal sector); Government through Federal Inland Revenue Service should create an effective and reliable data base for every corporate entity to minimize (if not eliminate) the incidence of tax evasion and there should be constant training and re-training of CIT administrators through seminars, conference to keep them abreast with the modern trend in tax administration.

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