Analysis of the Effect of High Corporate Tax Rate on the Profitability of Corporate Organisations in Nigeria – A Study of Some Selected Corporate Organisations

C.I. Ezugwu, D. Akubo


The study was carried-out to analyse the effect of high corporate tax rate on the profitability of corporate organizations in Nigeria. The related literatures were reviewed. The population of study comprises the selected corporate organizations while the sample size of the study is fourty one (41). Taro Yamane sampling technique was adopted because it ensures a satisfactory degree of representativeness and un-biasness. A number of statistical tools including tables and Regression were used to analysed the data and test the hypothesis formulated. Our analysis of data revealed that, the study depicts a direct positive relationship between corporate tax rate and realised profit. It is therefore, recommended that, the Nigeria corporate tax rate of 30% should be reduce below OECD average corporate tax rate of 25.32% to avert the negative economic effects of high corporate tax rate on the long-run and also the Nigerian tax system should be change from classical system to imputation system to avoid economic double taxation.

DOI: 10.5901/mjss.2014.v5n20p310

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Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)

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