Determinants of Taxable Capacity in Nigeria

Bassey Eyo Bassey and Eme J. Efiong
Additional contact information
Bassey Eyo Bassey: Department of Accounting,University of Calabar, Cross River State-Nigeria, Nigeria
Eme J. Efiong: Department of Accounting,University of Calabar, Cross River State-Nigeria, Nigeria

International Journal of Management Science and Business Administration, 2018, vol. 4, issue 6, 42-51

Abstract: This study is centered on the determinants of taxable capacity in Nigeria, with taxable capacity viewed as the ability of the taxed person to bear the burden of the tax in relation to their source of income without experiencing a reduction in standard of living, or margin of profit and investment in the case of firms. The study employed desk survey research design, and data obtained from secondary sources and analysis conducted using the ordinary least square technique. The results from the regression analysis and the test of hypotheses revealed that the relationship between inflation and taxable capacity in Nigeria was negative and statistically insignificant. Also, the results showed that both the degree of economic openness and the level of economic development positively and significantly affected taxable capacity in Nigeria. The study recommended that the Nigerian government should create an enabling environment that will facilitate international trade and provide the necessary facilities for the efficient and effective administration of taxes on the income generated from the global market as these will go a long way in providing revenue for the government.

Keywords: Degree of Economic Openness; Inflation; Level of economic development; Social Amenities; Taxable Capacity (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://researchleap.com/wp-content/uploads/2018/0 ... ity-in-Nigeria-1.pdf
https://researchleap.com/determinants-of-taxable-capacity-in-nigeria/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mgs:ijmsba:v:4:y:2018:i:5:p:42-51

DOI: 10.18775/ijmsba.1849-5664-5419.2014.46.1005

Access Statistics for this article

More articles in International Journal of Management Science and Business Administration from Inovatus Services Ltd.
Bibliographic data for series maintained by Bojan Obrenovic ().