THE IMPACT OF TAXES ON THE PERFORMANCE OF DEPOSIT MONEY BANKS IN NIGERIA

THE IMPACT OF TAXES ON
THE PERFORMANCE OF
DEPOSIT MONEY BANKS IN
NIGERIA

Obi, Happiness Ijeoma
Department of Accountancy, Rivers State
University, Port Harcourt, Nigeria
obihappinessijeoma@gmail.com
ABSTRACT
The study empirically investigated the
impact of taxes on the performance of
deposit money banks in Nigeria. The data
employed in the study were extracted
from audited financial reports and
shareholders reports of banks. In
performing
the
analysis,
rigorous
econometric tools such as ordinary least
square, Granger causality test and
diagnostic test were all employed with the

aid of econometric statistical packages
version 9. The result of the study revealed
that company income tax, withholding tax
and stamp duty tax have different and
significant impact on banks performance
in Nigeria. Based on this, the study
concluded that company income tax rate
should be reduced for banks, as this will
boost their performance to both
shareholders and host communities which
will in the long run improves the growth of
the economy.
Key words: Granger Causality, diagnostic
test, corporate tax, fee and investment
incomes.

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