Journal • CITN Journal

Editorial Board

Editor-in-Chief

Professor Rafiu Oyesola Salawu

Department of Management & Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-Ife

Managing Editor

Professor Godwin Emmanuel Oyedokun

Department of Management & Accounting, Lead City University, Ibadan, Nigeria

Editorial Board Secretary

Mary-Fidelis Chidoziem Abiahu

Director, Research and Professional Standard, Chartered Institute of Taxation of Nigeria

Editorial Board Members

Professor Chinedum Nathaniel Nwezeaku

Federal University of Technology, Owerri

Professor John Adeoti

Nigeria Institute of Social and Economic Research (NISER), Ibadan

Professor Uche Jack-Osimiri

Faculty of Law, River State University, Port Harcourt

Professor Aruwa Suleiman Akwu-Odo Salihu

Nasarawa State University, Keffi Nasarawa State Nigeria

Dr. Eiya Ofiafoh Ofiafoh (Associate Professor)

Department of Accounting, University of Benin, Benin City, Nigeria

Dr. Stephen Chukwuemeka Mark Abani

MCSA Worldwide Projects Limited, Abuja, Nigeria

Dr. Kenny Adedapo Soyemi

Department of Accounting, Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria

Professor Joseph Uchenna Uwaleke

Department of Banking & Finance, Nasarawa State University, Keffi Nasarawa State, Nigeria

Barrister Chukwuemeka Eze

Faculty of Law, Nasarawa State University, Keffi Nasarawa State, Nigeria

Mr. Simon Nwanmaghyi Kato

Federal Inland Revenue Service, Chairman’s Office, Abuja, Nigeria

FINANCIAL REPORTING AND TAX ISSUES IN NIGERIA

Description

FINANCIAL REPORTING AND TAX ISSUES IN NIGERIA

Authors

Sadiq Oshoke Akhor and Dennis Onutomaha Akrawah

Abstract

The purpose of this study is to examine the relationship between financial reporting and tax issues in Nigeria. The objective of the study is to examine the relationship between deferred taxation, tax planning and financial reporting in Nigeria. The study adopts a longitudinal research design for the collection of secondary data for the period of 2012 to 2016 where thirty-two (32) quoted non-service company are randomly selected and employs Logistic regression for the empirical analysis. The empirical evidence shows that deferred taxation has a positive and a significant relationship with financial reporting at 1% level of significant across the models (Probit, Logit and Extreme value regressions), tax planning measured by cash effective tax rate has a positive and insignificant relationship with financial reporting even at 10% level of significant across the models (Probit, Logit and Extreme value regressions). And tax planning measured by income effective tax rate has a negative and insignificant relationship with financial reporting even at 10% level of significant across the models (Probit, Logit and Extreme value regressions). The study therefore recommends that financial managers and accountants should consolidate deferred tax liabilities for the intended purpose because it help to generate more cash flow to the organization for meeting operation activities. The study also suggests that management of quoted firms in Nigeria should employ stringent tax measures to cushion the incidence of cash effective tax rate and income effective tax rate.

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