International Journal of Accounting Research

Abstract

Direct Tax Collections and Federation Account Revenue in Nigeria

Lateef Olumide Mustapha, Lasis Isiaka Olalekan, Ayodeji Salihu

This study examined and analyzed the effect of two major direct tax collections: Petroleum Profit and Company Income Taxes on Federal Account Revenue in Nigeria. The study adopted ex-post research design. Secondary data was obtained from Federal Inland Revenue Service in respect to tax collection and Office of the Accountant General of the Federation (OAGF) in respect of the total revenue collected from the period of 1999-2018. The study used multiple regression analysis to analyze the data. Findings from the study revealed that Petroleum Profit Tax and Company Income Tax revenues have positive and significant effects on the Total Federation Revenue Funds at 1%, level of significance. The study, therefore, recommended that government at federal level should enhance the collection of direct tax revenue processes through proper legislation that will strengthening the existing laws  and ensure that any deviations from compliance with the laid down rules and regulations are severely dealt with and punished accordingly. In addition, improvement on the existing digitization of the process of tax revenue collection as regards to PPT and CIT through partnership with telecommunication companies to ensure full compliance of remittance will massively improve revenue status of Government for meaningful development.

Published Date: 2021-08-16; Received Date: 2021-07-24