ABSTRACT

This work examines company income tax and its effect on the Nigerian economic development.

This inquiry has become important because of the need to diversify and increase the revenue

base of this government for development purposes. Economic development is a phenomenon

that explains the structural changes that occurs in a particular society. The structural changes

are observed in increased per capita income, standard of living, quality of goods and services

produced and exchanged in the country over a period of time. Statement of the problem

revealed that companies do give false financial report to the FIRS, also corrupt practices of

some of the staff of the FIRS. In order to achieve the objectives of this study, properly validated

research questionnaire and oral interview were used as a means of data collection for the

purpose of the study. Data gathering from the use of this questionnaire were subjected to

statistical analyses (Chi-square). The research findings revealed that company income tax

contributes signicanily to the Nigerian economic development, even amidst tax avoidance by

companies. The researcher recommends that federal inland revenue service should properly

monitor the activities of companies to achieve optimum collection of taxes payable to the

government and to engage in discussions to learn what limits their optimal performances and

then should be empowered to succeed.