CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Taxes are the most important source of government revenue. A tax can be defined as a compulsory levy imposed by a public authority one in comes, consumption and production of goods and services. Taxes are levied on personal incomes (consisting of salaries, business profit interest income divided royalties etc) company profits, petroleum profit capital gains and capital transfers.
For a payment or collection to be considered a tax, it should posses the following characteristics.
a. It is a compulsory payment imposed by the government on the people residing in the country. Since it is a compulsory leery, any person who refuses to pay a tax is liable to punishment. A levy the payments of which is voluntary is not a tax buy a contribution or donation.
b. A tax must be for common use. It must be for common good, the government uses the revenue collected from taxes for providing hospitals, schools, public utility services tc. which benefits every citizen of the nation.
c. A tax is not levied in return for any specific services rendered by the government to the taxpayer. An individual cannot ask for any special benefit from the government in return for the tax paid by him or her.
1.2 OBJECTIVE OF THE STUDY
The objective of writing this project work is to view the impact of taxation law on investment activities in Nigeria.
In view of this fact, the study will take a look at whether business activities management recorded nr prepared their financial statement as stipulated by the tax law.
In the course of the study the researcher I shall also take a look at the concept of tax law in Nigerian and also make suggestions and recommendation on taxation in Nigeria.
1.3 SIGNIFICANCE OF THE STUDY
This study would help in enlightening manager’s accountants, auditors, Business consultants, tax collectors financial manager, government (federal, state and local joint tax board state internal revenue board and federal board of Inland Revenue board, about the impact of taxation law on investment activities in Nieria.
It will also give the likely suggestion solution to the problem-encountered in taxation law and also highlight the necessary improvement on taxation law on investment activitieNigeria.