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

Abstract

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 improve the growth of the economy