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

OBI, HAPPINESS IJEOMA
Department of Accountancy, Rivers State University, Port Harcourt, Nigeria.
Phone: +2348034997092
E-mail: obihappinessijeoma@gmail.com

The study empirically investigated the impact of taxes on the performance of deposit money
banks in Nigeria. The study employed the expost facto research design. The data employed in
the study were extracted from audited financial reports and shareholders reports of banks for
the period of 2007-2017. 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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