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 | Size: 78 pages | Chapters: 1-5
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