Abstract
The need to diversify revenue sources in Nigeria through taxation cannot be over-emphasized especially with the advent of Corona Virus (COVID-19) which seem to strengthen international trading and the tax administrators a key to achieving the desired tax revenue. It is therefore pertinent tat tax administration in Nigeria is properly positioned to properly handle tax issues around transfer pricing for an enhanced tax revenue in Nigeria. In this study, the researcher evaluated the different components that could strategically reposition tax administration in Nigeria for optimum tax revenue through Transfer Pricing. This research paper employed theories and empirics in examining all the variables involved in the discussion. There was a relatively broad review of literatures covering the prospects, challenges as well as the efforts of government towards the optimization of Transfer Pricing Taxation (TPT). Survey and descriptive research designs were employed for this study and SPSS was employed for data analysis. There was performance of descriptive statistics on the demographic information of the respondents while the influence of the variables on the strategic repositioning of tax administration through transfer pricing in Nigeria were determined through the use of T-test data analysis. Reliability test was done using Cronbach’s alpha to measure the reliability of the instrument. The findings revealed that tax administrators and other stakeholders are undecided about the adequacy of various provisions in the tax laws/regulations to handle domestic transfer pricing matters such as evasion and aggressive avoidance schemes leading to Base Erosion and Profit Shifting; the capacity, capability and motivation of tax administrators for same purposes. Recommendations were offered.
Highlights
Prior to 2015, tax administrators faced a lot of administrative challenges occasioned by complex business arrangement issues that they didn’t know how best to tackle in order to achieve the best taxing result for the taxing nation accruing from Transfer Pricing (TP) activities of Multinational Corporations (MNCs)
The instrument used for data collection was designed by the researcher and comprised of five sections: section 1 contained information on respondents demographic data; section 2 was on adequacy of policies, rules and regulations to curtail Base Erosion and Profit Shifting (BEPS); section 3 was on preventing tax evasion and avoidance using TP; 4 deals with policies, rules and regulations on handling TP issues in Nigeria; while section is on the empowerment of tax administrators to handle TP issues for optimum tax revenue
The results show various variables that could contribute to the strategic repositioning of tax administration in Nigeria to bring about optimum tax revenues from MNCs in Nigeria
Summary
Prior to 2015, tax administrators (especially in the developing nations like Nigeria) faced a lot of administrative challenges occasioned by complex business arrangement issues that they didn’t know how best to tackle in order to achieve the best taxing result for the taxing nation accruing from Transfer Pricing (TP) activities of Multinational Corporations (MNCs). The reactivation of interest in the generation of tax revenue has led to various problems which includes but not limited to the proliferation of taxes and abuse of taxing powers [46]. Taking a look at the issue of corporate tax, many problems could be said to be related with tax and the collection of taxes and these include the administrative, Onyeka-Iheme Chimeruo Victory and Akintoye Ishola Rufus: Strategic Repositioning of
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