ABSTRACT
This research study evaluates the
effect of tax policies on financial reporting. It is a survey evidence in which
some selected banks were used as main focus for the study. One of the aims of
government in enacting tax policies is to control certain activities in the
economy. They are also interested in knowing the way the tax policies affect
the areas where they are applicable. Individuals and corporations are also
interest in knowing the effect of these policies on their reports. But it has
been noticed that lack of knowledge of tax policies before the preparation of
fmal accounts make the financial report of firms not to show the effect of such
policies. Also, government change these tax policies from time to time as it deem
fit. So, when these changes are adverse, the finns seem to cushion the effect
through tax avoidance or even evade the tax. Hence, this will lead to
underreporting, concealment of income or gains and falsification of accounts
and other documents. Based on the objectives of the study, research questions
and hypothesis, a fitting • research methodology was adopted to suite the
research work. Both primary and secondaty data were gotten so as to get the
necessaty information needed. Primary data was obtained mainly through the
administration of questionnaire. Secondary data was gotten from textbooks,
journals, other articles and the website. Two measuring techniques were
employed, one in analyzing the data collected and the other in testing the
hypothesis. They are simple percentage frequency distribution and chi-square
respectively. After the analysis of data was carried out, findings were made.
The major ones are: 1. The knowledge of tax policies has significant effect on
the information content of a firm's financial report. 2. Changes in the tax
policies do affect a firm's financial reporting. 3. Government policies and •
legislation have direct influence on tax matters. Recommendations were also
made which include some of the following: 1. Change in tax policies should be
controlled effectively to avoid unnecessary change so as to accord stability in
reporting habits of fan's. 2. Since frequent changes increase the rate of tax
avoidance and tax evasion practice, tax policies should be made stable at least
for a reasonable period of time. 3. The knowledge of tax policies is very
important particularly to the accountant who prepares the financial statement
and reports. This is so because the effect of tax policies if identified would
enable the finns annex opportunities form such policies
NWACHUKWU, C (2021). Effect Of Tax Policies On Financial Reporting (A Survey Evidence). Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-tax-policies-on-financial-reporting-a-survey-evidence-7-2
CHINYERE, NWACHUKWU. "Effect Of Tax Policies On Financial Reporting (A Survey Evidence)" Mouau.afribary.org. Mouau.afribary.org, 05 Jul. 2021, https://repository.mouau.edu.ng/work/view/effect-of-tax-policies-on-financial-reporting-a-survey-evidence-7-2. Accessed 01 Nov. 2024.
CHINYERE, NWACHUKWU. "Effect Of Tax Policies On Financial Reporting (A Survey Evidence)". Mouau.afribary.org, Mouau.afribary.org, 05 Jul. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-tax-policies-on-financial-reporting-a-survey-evidence-7-2 >.
CHINYERE, NWACHUKWU. "Effect Of Tax Policies On Financial Reporting (A Survey Evidence)" Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-tax-policies-on-financial-reporting-a-survey-evidence-7-2