Title:

The effects of IFRS adoption on taxation in Nigerian manufacturing companies

Group publication title:

Financial Sciences. Nauki o Finansach

Title in english:

Wpływ implementacji międzynarodowych standardów sprawozdawczości finansowej na wysokość opodatkowania nigeryjskich przedsiębiorstw produkcyjnych

Creator:

Adegbbite, Tajudeen Adejare

Subject and Keywords:

depreciation ; taxation ; shareholders' funds ; long-term debt ; noncurrent asset ; IFRS ; amortyzacja ; opodatkowanie ; kapitał własny ; zobowiązania długoterminowe ; aktywa trwałe ; MSSF

Description:

Financial Sciences. Nauki o Finansach, 2020, vol. 25, no. 4, s. 1-15

Abstrakt:

This study examined the effect of IFRS adoption on manufacturing companies’ tax payable from 2012 to 2018. Data gathered from the annual reports of fifty selected Nigerian listed companies were scrutinised employing PPMC and panel data methodology to quantify the effect of IFRS adoption on tax payable. It revealed that Profit before tax (PBT) caused a positive and significant effect on TAXATION, whereas Depreciation (DEPR), Shareholders’ Funds (SHDFUD), Long-term debt (LGTDEBT), and Noncurrent Asset (NONCURASET) impacted on TAXATION negatively. This showed that an surge in DEPR, SHDFUD, LGTDEBT and NONCURASET diminished TAXATION in manufacturing companies. Conclusively, IFRS adoption significantly downplayed manufacturing companies’ tax payable because organisations circumspectly and lawfully circumvent or reduce the tax payable through depreciation claimed on existing assets, the procurement of new noncurrent assets, and long term debt (leverage). It is advocated that there should be monitoring mechanism devices put in motion by the government to monitor procurement by companies, impairment of assets and debts acquired transparently, in order to deter the unnecessary and artificial reduction in tax payable

Publisher:

Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu

Place of publication:

Wrocław

Date:

2020

Resource Type:

artykuł

Resource Identifier:

doi:10.15611/fins.2020.4.01

Language:

eng

Relation:

Financial Sciences. Nauki o Finansach, 2020, vol. 25, no. 4

Rights:

Pewne prawa zastrzeżone na rzecz Autorów i Wydawcy

Access Rights:

Dla wszystkich zgodnie z licencją

License:

CC BY-SA 4.0

Location:

Uniwersytet Ekonomiczny we Wrocławiu