Petroleum Profit Tax and Nigeria Economic Development

Petroleum Profit Tax is a major source of revenue for the Federal Government of Nigeria to meet its statutory obligations of ensuring the economic development of Nigeria. It assists the government to achieve the country’s macroeconomic objective in the areas of fiscal and monetary policies.However,it has been observed that non-provision of corporate social responsibilities in the communities where there is extraction of crude oil result into constant destruction of production installations, and hindrance to production; tax avoidance and evasion d poor tax administration, and weak fiscal policy have been negating the increase in tax income generated. The main objective of this paper is to assess the relationship between petroleum profit tax and economic development of Nigeria for the enhancement of the welfare of the citizens. Primary and secondary data were used to collect the research data, while chi-square and multiple regression statistical models were used to analyze the results of the field work. The findings reveal that there is a very strong relationship between petroleum profit tax and economic development of Nigeria, tax avoidance and evasion are major hindrance to income growth in this sector, poor tax administration is a problem to effectiveness and efficiency of this source of income, and lack of corporate social responsibilities is causing unrest in the crude oil production zone. The paper recommends the need for the government to make judicious use income generated for the benefits of Nigerians, and among others the need for tax reforms to address the issue of tax evasion and avoidance

Globalization and the Precarious State of Public Finance in Nigeria

As globalization eviscerates national borders, governments in both developed and developing countries are discovering that their tax base is eroding, especially their ability to tax the proceeds and profits from corporate investment and finance Domestic revenue mobilization is key to sustainable development finance – only selfsufficiency will allow the development of fully-functioning states with flourishing systems of political representation and economies reflecting societies’ expressed preferences in regard to, for example, inequality. The significant of this paper therefore is that it will enable the revenue authority take necessary steps to prevent tax avoidance and tax evasion so as to increase the level of domestic revenue for development. It concluded that claims of corporate social responsibility are undermined when low corporate tax payments are exposed and a process of tax competition at the global level undermines the social contract previously set within the national arena, as states compete to offer tax exemption to capital. The paper suggested that with effective tax administration, adequate taxation of transnational corporations, tax compliance as part of corporate accountability, international tax cooperation, fight against bribery and corruption, arm length international trade negotiations and reduction in military expenditure, the problems are more likely to be solved

Governance and Development in Africa:the Role of Taxation

Despite decades of reform and foreign aid, the quality of public institutions in most African countries remains poor. Colonial powers did not leave behind strong, indigenous institutions that could tackle the development challenges of a modern state. Economic crises, wars and political instability have also taken their toll. Yet, Taxation which is one entry point for improving governance on the continent has received little attention. The paper highlights the problems of taxation in Africa,reviews some relevant literature and make some suggestions. These include well-designed tax systems to consolidate stable institutions, increase revenues, refocus government spending on public priorities and improve democratic accountability

Tax Expenditure in Sub Saharan Africa: The Nigerian Experience

The Nigerian government established the National Economic Empowerment and Development Strategies(NEEDS) in 2003 to achieve its trade policy of which the reform of Nigeria Custom Services is one of the major functions. Over the years, custom and excise duties have been major sources of revenue apart from crude oil.However, the problems of corruption, fraud and malpractices together with inefficiencies and ineffectiveness in operations have hindered the desire to contribute maximally to the economic development of the nation. The central objective of trade policy was to provide protection for domestic industries and reduce the perceived dependence on imports; reduce level of unemployment and generate more revenues from the non-oil sector,hence tariffs on raw materials and intermediate capital goods were scaled down. Duty exemptions and concessions remain some of the quantitative policy instruments for attracting investment and boost domestic production. This paper will review; discuss Tax Expenditure and the Nigerian experience, especially on loss of revenue from custom

Effects of Strategic Tax Behaviors on Corporate Governance

The interactions between corporate governance and taxation are bilateral and biunique: in fact, on one side, the manner in which corporate governance rules are structured affects the way a corporation fulfills its tax obligations; on the other hand, the way tax designs (from the government perspective) and related tax strategies (from the corporation perspective) are planned influences corporate governance dynamics. For example, allowing corporations to keep two different and separate sets of books (one for accounting purposes, the other for tax purposes) makes it easier for tax managers to obtain both tax savings and promising financial statements even though a critical financial status is present. Therefore, the purpose of this research is to analyze the connection between corporate governance and strategic tax behaviors, investigating how corporate governance rules can reach a higher level of corporate compliance with the tax system

The Effects of Board Size on Financial Performance of Banks: A Study of Listed Banks in Nigeria

A critical review of the Nigerian banking system over the years shows that one of the problems confronting the sector has been that of poor corporate governance. In an attempt to investigate the linkage between corporate governance and financial performance of banks, this study contributed to the existing literature by assessing the effect of size of boards on the performance of banking sector in a developing economy like Nigeria. This study made use of a range of data drawn from the Nigerian Stock Exchange fact book (2008), which contains information on board size and the performance proxies. Regressing performance on board size, it was observed that banks with board size below 13 are more viable than those with board size above 13. The study further observed that banks with larger boards recorded profits lower than those with smaller boards. Therefore, this study concludes that there is a significant negative relationship between board size and bank financial performance with a t- value of -1.977 and a p- value of 0.053. This is because, increase in board size occurs with increase in agency problems (such as director free-riding) within the board and the board becomes less effective. However, the paper recommends a smaller board size for better financial performance and to reduce the problem of free-rider of banks in Nigeria

Forensic Accounting as Panacea to the Challenge of Crime and Violence in the Caribbean

Crime and violence are development issues in the Caribbean. The proliferation of crimes and violence in the Caribbean nations has been a growing concern. This paper presents the worldwide emerging discipline of Forensic Accounting as a veritable Panacea to the challenges posed by crimes and violence. Using the secondary data methodology, it argues that Forensic Accounting which is the intersection between accounting, investigations, and legal matters, will provide the lasting solution which is being earnestly sought to tackle the menace of crimes and violence in the Caribbean. The paper therefore, amongst others, recommends a national and international implementation of Forensic Accounting based measures as a unified approach necessary to fight the Caribbean’s related crime and violence problems

The Impact of International Financial Reporting Standards on Taxation

Accounting is shaped by economic and political forces. It follows that increased worldwide integration of both markets and politics (driven by reductions in communications and information processing costs) makes increased integration of financial reporting standards and practice almost inevitable. The connection between tax and accounting is a complex topic with many dimensions. One explanation for this is changes within accounting on the international level. This creates a challenge for tax law and a need to revisit the theoretical and practical foundations for the use of accounting as a starting point for taxation of companies. International Financial Reporting Standards (IFRS) is a standard format of financial reporting that is gaining momentum worldwide and is a single consistent accounting framework and is likely to become predominant Generally Accepted Accounting Practice (GAAP) in times to come. The aim of this study is to research International literature to gain an insight into the basis and form of divergence between accounting transactions and taxation accounting in relation to International Financial Reporting Standards

FUNDING OF UNIVERSITY EDUCATION IN NIGERIA: CHALLENGES AND PROSPECTS

Higher education is the instrument par excellence for development and there is the ultimate need to make it relevant and responsive to the needs of the society. A reliable and sufficient funding platform is a necessity for achieving access to and excellence in university education in Africa. Sources and systems of funding for Nigerian Universities have proven inadequate and innovative or alternative funding mechanisms have become very important more than ever before. This paper examines the funding debacle in Public and Private Universities in Nigeria. It presents the case study of Nigeria Higher Education Foundation (NHEF). Using the secondary data research methodology, it finds that private higher education is the fastest growing segment of higher education worldwide and African universities can as well be more active in getting funds from local institutions and global philanthropic support sources. It recommends, amongst others, the putting in place of a National University educational budget reform which gives unflinching priority to allocation of more funds and that actualizing the realization of suggested intensified creative financing strategies should be the responsibility of all major stakeholders of University education in Nigeria