THE EFFECT OF TAXATION IN BUSINESS DEVELOPMENT AND DECISION MAKING
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This study examined the effect of taxation in business development and decision making. Taxation in business development and decision is one that established two divides for assessment of subjects. One taxed alongside employment and the other as a body corporate. Those taxed alongside employment pays less, these may influence choice of forms, which may have avoidance connotation. The study evaluates the effect of tax differential on choice of business form of investors. The study reveals that tax differential affect investors decision on choice of Business form and that the existing differential reduces government revenue potential. Segregation of personal income tax between employment and business incomes is recommended. Because of desirability problem revealed in the study, an equal business tax could not be recommended, rather the kind of differential that currently exist under company income tax was recommended. Ii is expected to be applied to all the forms in an equitable manner. The researcher used primary and secondary methods of data collection to gather the needed data. The data obtained through questionnaires were presented in tables and analyzed using the simple percentage. The findings have also shown that factors which militate against successful taxation in business development and decision making are: raising of revenue, redistribution of wealth, management of the economy. The study recommends that Government should help to increase business operation by reducing the high cost of tax in other to increase the economy growth of the nation.
STATEMENT OF THE PROBLEM
The problems identified with taxation in business decision and development is a situation where two businesses probably, making similar profit from similar turnover that is also a result of equivalent level of investment, pays different amount as tax simply because one is a Company and the other is not, is one. A clear demonstration of inequality is depicted here especially in a situation where there is no discrimination among forms of businesses. Various means of avoiding taxes exists. What this perceivable inequality could lead to is a form of tax avoidance in which case, investors who are conscious of above facts may from the threshold (even with all the capabilities of floating a Company) choose a partnership or sole trade, even if it is glaring that it is not appropriate, because of tax advantage. A second possibility is the fact that existing investors in an organization that has gained reasonable ground may deliberately liquidate and raise partnership business to avoid high taxes.
OBJECTIVES OF THE STUDY
1. To examine effect of taxation on business decision for Economic growth.
2. To assess the benefit of business decision and development in for effective tax compliance
3. To identify the strategies for efficient business decision to enhance adequate tax payment.
4. To examine the ways to minimize the high rate of taxation business development and decision.
1. What are the effects of taxation on business decision for Economic growth?
2. What are the benefit of business decision and development in for effective tax compliance?
3. What are the strategies for efficient business decision to enhance adequate tax payment?
4. What are the ways to minimize the high rate of taxation business development and decision?
SIGNIFICANCE OF THE STUDY
In this research, the significance of this study is to bring together the various ways and facts as regards to subject matter, the effect of taxation in business development and decision making.
1. It is believed that the outcome of this research work will be of interest to businessmen and organizations.
2. The research work will provide them with vital information regarding challenges facing business growth through heavy taxation. Businessmen and organizations can utilize this study to make amendments or control a number of lapses that may be affecting the business development and decision for efficient productivity in country.
3. It will also highlight the benefits of business development and decision on productivity to increase the economy status and create employment.
4. This research work will also serve as a vital material to those who may want to carry out further research work in this regard.
SCOPE OF THE STUDY
This research focus on the effect of taxation in business development and decision making.
LIMITATION OF THE STUDY
This research was constrained by so many factors:
1. TIME FACTOR: A study of this nature needs relatively long time during which information for accurate or at least near accurate inference could be drawn. The period of the study was short, time posed as constraints to the research.
2. FINANCIAL FACTOR: The research would have extended the survey to other area at the empirical level, but limitation as included cost of transportation to the source of material and the cost of time setting of the already completed work.
3. LACK OF COOPERATION: Many of the respondents are usually aggressive to relay the issue that borders cooperation among the respondents border.
4. MATERIAL FACTOR: – Shortage of relevant materials for literature review posed a great difficulty.
a. In ability to retrieve all the questionnaire forms for good representative used for the anticipation sample.
b. The study equally limited to the information gathered from primary and secondary sources.
DEFINITION OF TERMS
Business: – A business, also known as an enterprise or a firm, is an organization involved in the trade of goods, services, or both to consumers. Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money.
Development: – The act or process of developing, growth and progress.
Decision: – This can be regarded as the cognitive process resulting in the selection of a belief or a course of action among several alternative possibilities. Every decision-making process produces a final choice that may or may not prompt action.
Revenue: – Is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries and states, revenue is referred to as turnover.
Tax: – Is a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state to fund various public expenditures.