DOES TAXATION AFFECT BANKS’ PROFITABILITY: EVIDENCE FROM NIGERIA
DOI:
https://doi.org/10.57233/gujaf.v5i2.21Keywords:
Commercial bank, return on asset, return on equity, tax rateAbstract
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.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Author(s)

This work is licensed under a Creative Commons Attribution 4.0 International License.