DOES TAXATION AFFECT BANKS’ PROFITABILITY: EVIDENCE FROM NIGERIA
Abstract Taxation and tax policy of any economy has a major implication on the growth “and performance of businesses in every economy. fiscal policy instrument should not be rigid for the taxpayers. This is because a flexible and viable taxation system has the capacity to stimulate economic activit...
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| Format: | Article |
| Language: | English |
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Department of Accounting and Finance, Federal University Gusau
2025-01-01
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| Series: | Gusau Journal of Accounting and Finance |
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| Online Access: | https://journals.gujaf.com.ng/index.php/gujaf/article/view/320 |
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| author | Emmanuel Imuede Oyasor |
| author_facet | Emmanuel Imuede Oyasor |
| author_sort | Emmanuel Imuede Oyasor |
| collection | DOAJ |
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Abstract Taxation and tax policy of any economy has a major implication on the growth “and performance of businesses in every economy. fiscal policy instrument should not be rigid for the taxpayers. This is because a flexible and viable taxation system has the capacity to stimulate economic activities. The paper examines how taxation impact the profitability of commercial banks in Nigeria. To test the hypothesis, the paper applied the panel regression on published information from fifteen banks from 2011-2022. The findings reveal that the marginal tax rate, effective tax rate and the average tax rate have strong positive and significant effects on return on asset. The outcome offers corporations useful insights on tax planning strategies properly and show how their tax avoidance skills could be used without practicing tax evasion. Amongst others, the recommends that regulators should grant tax incentives and reforms to reduce the tax burden on companies. Moreso, governments should formulate unequivocal tax policies that would aid tax law and administration that would encourage business growth.
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| format | Article |
| id | doaj-art-bed88967877b420ab2fdaa3a54358e25 |
| institution | Kabale University |
| issn | 2756-665X 2756-6897 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Department of Accounting and Finance, Federal University Gusau |
| record_format | Article |
| series | Gusau Journal of Accounting and Finance |
| spelling | doaj-art-bed88967877b420ab2fdaa3a54358e252025-02-12T01:06:36ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2756-68972025-01-015210.57233/gujaf.v5i2.21DOES TAXATION AFFECT BANKS’ PROFITABILITY: EVIDENCE FROM NIGERIA Emmanuel Imuede Oyasor 0Department of Accounting Science Walter Sisulu University, Mthatha, South Africa Abstract Taxation and tax policy of any economy has a major implication on the growth “and performance of businesses in every economy. fiscal policy instrument should not be rigid for the taxpayers. This is because a flexible and viable taxation system has the capacity to stimulate economic activities. The paper examines how taxation impact the profitability of commercial banks in Nigeria. To test the hypothesis, the paper applied the panel regression on published information from fifteen banks from 2011-2022. The findings reveal that the marginal tax rate, effective tax rate and the average tax rate have strong positive and significant effects on return on asset. The outcome offers corporations useful insights on tax planning strategies properly and show how their tax avoidance skills could be used without practicing tax evasion. Amongst others, the recommends that regulators should grant tax incentives and reforms to reduce the tax burden on companies. Moreso, governments should formulate unequivocal tax policies that would aid tax law and administration that would encourage business growth. https://journals.gujaf.com.ng/index.php/gujaf/article/view/320Commercial bankreturn on assetreturn on equitytax rate |
| spellingShingle | Emmanuel Imuede Oyasor DOES TAXATION AFFECT BANKS’ PROFITABILITY: EVIDENCE FROM NIGERIA Gusau Journal of Accounting and Finance Commercial bank return on asset return on equity tax rate |
| title | DOES TAXATION AFFECT BANKS’ PROFITABILITY: EVIDENCE FROM NIGERIA |
| title_full | DOES TAXATION AFFECT BANKS’ PROFITABILITY: EVIDENCE FROM NIGERIA |
| title_fullStr | DOES TAXATION AFFECT BANKS’ PROFITABILITY: EVIDENCE FROM NIGERIA |
| title_full_unstemmed | DOES TAXATION AFFECT BANKS’ PROFITABILITY: EVIDENCE FROM NIGERIA |
| title_short | DOES TAXATION AFFECT BANKS’ PROFITABILITY: EVIDENCE FROM NIGERIA |
| title_sort | does taxation affect banks profitability evidence from nigeria |
| topic | Commercial bank return on asset return on equity tax rate |
| url | https://journals.gujaf.com.ng/index.php/gujaf/article/view/320 |
| work_keys_str_mv | AT emmanuelimuedeoyasor doestaxationaffectbanksprofitabilityevidencefromnigeria |