Partnership Income Tax on Social and Economic Development in Nigeria

Augustine E Osho ,A A Agbeleye ,Ruth Blessing Ojeme

doi:10.7176/rjfa/10-6-03

Abstract

This research work examines the partnership income tax on social and economic development in Nigeria. The objective of the study was to examine how partnership income tax revenue contributes to social and economic development in Nigeria. Secondary data are obtained from relevant literatures such as Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics publications. Data were tested using the Ordinary Least Square Linear Regression model. Findings show that, partnership Income Tax Revenue is making a unique significant contribution to the social and economic development in Nigeria and composition of the GDP. It is concluded that the results affirmed a rise in the income tax from partnership firms leads to an increase in social and economic development in Nigeria. It is recommended that government should ensure effective utilization of the income accrued taxation to encourage continuity in tax payment by the tax payers. Keywords: Economic Development, Gross Domestic Products, Partnership, Partnership Income Tax, Personal Income Tax, Social Development DOI : 10.7176/RJFA/10-6-03 Publication date :March 31 st 2019

Highlights

Partnership is one of the most exciting and dynamic areas of research within business society relations
The data for this study is obtained from National Bureau of Statistics concerning; Gross Domestic Product (GDP) and Personal Income Tax (PIT) which is a proxy for measuring partnership income taxation and covering the period of years 1988-2017 (30years)
4.0 Results 4.1 Test of hypotheses Ho: Personal Income Tax has no significant impact on Gross Domestic Product in Nigeria

Summary

Introduction

Partnership is one of the most exciting and dynamic areas of research within business society relations. The aim of most partnerships is to solve economic, social and environmental problems through collaboration (Crane, 1998). Partnerships include both public and private firms and increasingly depend on local business for leadership. Since the inception of the major employment programs that grew out of the state and local efforts have benefitted from the federal government’s leadership, technical expertise, and superior taxing powers. The partnership income is not chargeable to tax; rather, the income of each partner would be subjected to tax individually based on the income derived from the partnership

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