EFFECT OF CORPORATE TAX MIX ON SUSTAINABLE PERFORMANCE OF
LISTED MANUFACTURING FIRMS IN NIGERIA

Ibiam, Oti & Iormbagah, Jacob
Department of Accounting, College of Management sciences,
Michael Okpara University of Agriculture Umudike. Umuahia, Abia State. 2 Corresponding
author’s E-mail: jiormbagah1@gmail.com

The issue of corporate tax is beyond just corporate tax payment as many scholars and
practitioners think; it involves effective tax planning which includes deferred tax and tax
incentives enjoyed by firms in the wake of unexpected harsh economic crises, of which the novel
Convid_19 pandemic is not exempted. Making the right tax plan has been a ranging issue for
corporate tax managers especially for those in the manufacturing industries with great demand
for effective corporate tax mix that will aid business sustainable performance. Thus, this study
examines the effect of corporate tax mix on sustainable performance of listed manufacturing
firms in Nigeria. Data was collected from 10 listed manufacturing firms across sectors listed
on the Nigerian stock exchange from 2014 to 2018. The study adopts ex post facto research
design and the use of multiple linear regression in analyzing the data. Findings revealed that
tax incentive has a positive insignificant effect on the net income of listed manufacturing firms
in Nigeria while, deferred tax has a negative insignificant effect on the net income of listed
firms in Nigeria. Further findings revealed that company income tax has a positive and
significant effect on net income of listed manufacturing firms in Nigeria. The study implication
is that, the tax incentives available for manufacturing firms is not enough to boast
manufacturing activities for sustainable performance of the firms, and this compels the firms
to defer their tax payment which ends up becoming deferred tax liabilities. In line with the
study findings, it is recommended that; in the wake of economic crises, government should
provide more tax incentives that will discourage tax deferment and increased manufacturing
activities in Nigeria to enhance sustainable performance by the firms. Also, manufacturing
firms should consider the need to explore the various tax incentives available as a way to
determine an effective corporate tax mix, such that continues company income tax payment
will be sustained; this will reduce the tax burden of the firm and discourage future deferred tax
liabilities accruable to the firm. Also, manufacturing firms should consider highly the need to
engage the services of tax experts that will help the firms in making tax plans; knowing when
to use deferred tax approach as a way of shielding against the consequences of immediate
corporate tax payment against the net income of the manufacturing firms during economic
crises; this will enable the manufacturing firms have enough residual net income for
sustainable performance and investment.
Keywords: Tax incentives, deferred tax, company income tax and net income

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