ABSTRACT
In Nigeria Small and
Medium enterprises (SMEs) are increasingly seen as engines of economic growth
of the country, contributing 75% of GDP and constituting 90% of the private
sector. This is because they contribute to sustained creation of employment approximated
to be 2.5 million, improve living standards and ensure social and political
stability (Hatega, 2017). On the other hand, it has been observed from previous
taxation studies that several SMEs in developing economies are generally
not compliant to tax despite the significant number of reforms intended to
enhance compliance (Terkper, 2016; James, Barbour & Stern, 2017; Ayoki,
2017). Such enterprises cannot easily be located by tax administration (Teera,
2015), and those who can be traced pay less than their fair share of tax
(Ahmed& Braithwaite, 2015).
Income tax is therefore
defined as a tax imposed on a person's taxable income at specific rates. A
person includes an individual, company, partnership, trustee, government and
sub divisions of government. Income tax is charged on every person who has
chargeable income for every year of income. Chargeable income is derived from
three main types of income, namely; business, employment and property. In
addition, a tax is referred to as a non-quid pro quo, implying that a tax is
paid by assesses without corresponding returns in form of social goods and
services from the government. Justice Holmes described tax as the price for
civilization. Ismail Kintu (2016).
Muwanga, (2014).
Profitability has been defined as an organizations ability to earn revenues in
excess of expenses over a period. Pandey noted that, a company should earn
profits to survive and grow over a long period. Firms must earn profits to
maximize their shareholders wealth, to generate income for expansion and to
finance their daily operations.
TUNGBOWEI, T (2021). Effect Of Corporation Tax Revenue On The Profitability Of Business Organization In Abia State. Nigeria. Mouau.afribary.org: Retrieved Nov 28, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-corporation-tax-revenue-on-the-profitability-of-business-organization-in-abia-state-nigeria-7-2
TAMARAEBI, TUNGBOWEI. "Effect Of Corporation Tax Revenue On The Profitability Of Business Organization In Abia State. Nigeria" Mouau.afribary.org. Mouau.afribary.org, 17 Aug. 2021, https://repository.mouau.edu.ng/work/view/effect-of-corporation-tax-revenue-on-the-profitability-of-business-organization-in-abia-state-nigeria-7-2. Accessed 28 Nov. 2024.
TAMARAEBI, TUNGBOWEI. "Effect Of Corporation Tax Revenue On The Profitability Of Business Organization In Abia State. Nigeria". Mouau.afribary.org, Mouau.afribary.org, 17 Aug. 2021. Web. 28 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-corporation-tax-revenue-on-the-profitability-of-business-organization-in-abia-state-nigeria-7-2 >.
TAMARAEBI, TUNGBOWEI. "Effect Of Corporation Tax Revenue On The Profitability Of Business Organization In Abia State. Nigeria" Mouau.afribary.org (2021). Accessed 28 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-corporation-tax-revenue-on-the-profitability-of-business-organization-in-abia-state-nigeria-7-2