TAX PLANNING: AN INVESTIGATION OF THE RATE OF ITSIMPLEMENTATION FOR GROWTH OF BUSINESSES IN NORTHEASTERNNIGERIA

Abstract

The aim of this study was to ascertain whether business owners and managers in Nigeria are
aware of tax planning schemes and its implementation strategy for the growth of their
businesses using a sample of thirty (30) Small and Medium Scale Enterprises (SMEs) across
three states in Nigeria namely; Gombe, Bauchi and Adamawa states. Questionnaires were
used to gather data for the study and analysed using mean, standard deviation, percentages,
ranking and application of Central Limit Theorem (Z) and correlation techniques with the
aid of Statistical Package for Social Sciences (SPSS)version 16. Findings indicated that a
large proportion approximately 97% of the businesses do not take advantage of tax planning
to minimize their burden for reasons ranging from inability to interpret Nigerian laws for tax
planning purposes to the insecurity that renders business activities unpredictable hence the
inability to plan business income. This study provides new insight into how businesses in
Nigeria can successfully undertake and implement tax planning strategies to facilitate
growth. It has allowed us to analyze the benefits that can accrue to businesses undertaking
and successfully implementing tax planning strategies within the Nigerian context.