ABSTRACT
This
research work is focused on the impact of taxation law on in vestment activity
in Nigerian a case study of Global Soap and Detergent Industry Ilorin the study
appraises the significance of a taxation on private industries towards the
collection or attainment of the generation of revenue by Nigerian government
agencies. This project work will also look into the development and weakness or
challenges of VAT value added tax by the Nigerian industries. Tax are the most
important source of government revenue which study the impact of taxation Jaw
on investment activities in Nigeria could be extensive since there are lot of
different business activities in Nigeria. Such as manufacturing company,
wholesales, retañ banking insurance, investment, financip sh/p/n7. Literature
review is an art of going through all available sources of information on ones
chosen research topic with a view to either taken by scholars. Taxes generally
have a effect on the profitability of investment tack c/ark said an
understanding of some part law is therefore essential to maximizing investment
profit. Th .; er endeavor to give an understanding of tax laws affecting
investment decision. Research methodclcc. a
of
data collection is the major source of information used in this study was
published secca-. – from the regulation and edited text.
This
research work will also look into the taxation investment insecurities,
municipal ccz – .
way
of improving public facilities such as schools, playground, park etc the
research ,‘ – of management expenses of investment companies because in any
company there ms: –
will
be controlling, directing, organizing and supervising such company for the
improveme: a:: – – – the company. This work will also investigate on the
historical background of personal incce
and
the reform of the taxation before the desisting current system. Generally this
work wiii a : – : – z – the various institute of government uncharged of
generating tax from both individual and compar structure of taxation imposed by
the government on private individual and companies. Though – – – recommendation
of project shows the duty of government to provide incentive and tax benefits
to the private and public sector. Also reliable infrastructures and conducive
economic environment that would give inspiration to new investors while
assisting old one’s to perform better.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE
STUDY
Taxes are the most important source of government
revenue. A tax can be defined as a compulsory levy imposed by a public
authority one in comes, consumption and production of goods and services. Taxes
are levied on personal incomes (consisting of salaries, business profit
interest income divided royalties etc) company profits, petroleum profit
capital gains and capital transfers.
For
a payment or collection to be considered a tax, it should posses the following
characteristics.
a.
It is a compulsory payment imposed by the government on the people residing in
the country. Since it is a compulsory leery, any person who refuses to pay a
tax is liable to punishment. A levy the payments of which is voluntary is not a
tax buy a contribution or donation.
b.
A tax must be for common use. It must be for common good, the government uses
the revenue collected from taxes for providing hospitals, schools, public
utility services tc. which benefits every citizen of the nation.
c.
A tax is not levied in return for any specific services rendered by the
government to the taxpayer. An individual cannot ask for any special benefit
from the government in return for the tax paid by him or her.
1.2 OBJECTIVE OF THE
STUDY
The objective of writing this project work is to
view the impact of taxation law on investment activities in Nigeria.
In view of this fact, the study will take a look at
whether business activities management recorded nr prepared their financial
statement as stipulated by the tax law.
In
the course of the study the researcher I shall also take a look at the concept
of tax law in Nigerian and also make suggestions and recommendation on taxation
in Nigeria.
1.3 SIGNIFICANCE OF THE
STUDY
This study would help in enlightening manager’s
accountants, auditors, Business consultants, tax collectors financial manager,
government (federal, state and local joint tax board state internal revenue
board and federal board of Inland Revenue board, about the impact of taxation
law on investment activities in Nieria.
It
will also give the likely suggestion solution to the problem-encountered in
taxation law and also highlight the necessary improvement on taxation law on
investment activities Nigeria.
1.4 SCOPE OF THE STUDY
The study of the impact of taxation laws on
investment activities in Nigeria could be extensive since there are lot of
different business activities.
In Nigeria such as manufacturing wholesales; retail,
banking insurance, investment, financing, shipping, road and transportation of
tax payment affect the firm in an industry.
The extent of this research is limited to the study
of taxation and effect on a company or two company’s activities in an industry.
This impact on company is typical of others and industry.
This project research work also examines the impact
of pay-as you-earn system of tax collection af purchasing power of industry in
pay employment and small trades concern.
Methods’ sending of some of the tax liabilities has
also been considered in this course o for the research work.
Government effort in providing a conductive economic
environment that would inspire nev.
encourage
existing one towards a better performance through the provision on incentive
and tax be’-a-: a covered in this project.
1.5 RESEARCH METHODOLOGY
The
method of the study is a very crucial aspect in research work. However, several
research methods, are open for the use of the researcher, but the choice of
method will assist in evaluating the adequacy and efficiency of the research
finding and conclusion. Therefore, selecting a proper method of investigation
into a problem is a key consideration for due to the fact that the topic being
studied is not the type that every organization appreciates its importance
achievement of organization objectives. For this reason, the researcher as a
student decided to use ce’sc a interview in gathering the secondary data
required for the desired result.
1.6 DEFINITION OF TERMS
Tax:
A tax can be defined as a compulsory levy imposed by the government of a nation
on the ‘cores. consumption and production of goods and services of the citizen.
Law:
It is a system of rules that a society or government develops in order to deal
with business agreement. social relationship and crime.
Investment:
It is the activity of buying shares or putting money into a bank account in
order to obtain a return inform of divided or interest.
Activity
(IES): This can be defined as the services that required certain number of time
and skill.