Tag Archives: Taxation

The Relationship between Tax Burden and Foreign Direct Investment Inflows: A Review of Empirical Literature (Published)

This study reviews literature on the relationship between tax burden and foreign direct investments (FDI) inflows across the world. Various empirical research have found contradicting outcomes of the relationship between tax burden and FDI inflows. This study aims to establish the dominant relationship between tax burden and FDI inflows. Taxation components such as tax system, tax types, tax rates, tax base, tax structures affect the amount of tax revenues collected hence the tax burden. Therefore, in this study, tax burden was represented by itself and taxation components. The research found literature has two divergent relationships between tax burden and FDI inflows: negative and none. However, the relationships largely depended on the taxation components and country or economic region under study. The research findings demonstrate that world over there is no universal consensus on the relationship between tax burden and FDI inflows. Therefore, tax competition theory, which proposes that there is inverse relationship between tax burden and FDI inflows may not be applicable universally. The research implication is that the paper has demonstrated that inverse relationship between tax burden and FDI inflows is not universal. There is need to establish the relationship between tax burden and FDI inflows in any specific country or economic region. Countries that rely on the presumptive inverse relationship between tax burden and FDI inflows to shape their tax policy to attract FDI inflows should rely on empirical research findings undertaken in the country or economic region. The research recommends empirical studies on the relationships between tax burden and/or taxation components, and FDI inflows in specific countries and economic regions.

Keywords: FDI inflows, Tax Burden, Taxation


This study examined the moderating influence of technology in the relationship between taxation and return on investment in agribusinesses operating in Nigeria. Seven agribusinesses listed in the Nigerian Stock Exchange (NSE) Fact Book were involved in the study. Adopting the survey research design, questionnaire was administered on general managers, chief accountants, finance managers, and chief internal auditors of the selected firms as well as external auditors and tax administrators. Test re-test of the research instrument revealed very high reliability co-efficient. On account of this, the data generated were presented using tables, frequencies and percentages while the composite research hypothesis was tested regression and t-test analytical tools, aided by Software Package for Social Sciences (SPSS). The results was established a weak moderating influence while reaffirming the inverse relationship between taxation and return on investment. It is recommended that the efficiency-driven ideals of strategic financial management which imperatively underscore effective tax planning in order to justify all ensuing technology-related tax liabilities of agribusinesses for the ultimate sustainable diversification of the Nigerian economy.

Keywords: Strategic Financing, Taxation, Technology, agribusiness


The strides in information and communication technology (ICT) makes e-commerce a critical and inexorable feature of the global economy. In modern trend, significant numbers of transactions are consummated online. In Nigeria, it is no longer news that Central Bank of Nigeria (CBN) is promoting a ‘cash-less policy’ to drive development and modernation of our payment system in line with Nigeria’s version 2020 goal of being amongst the top 20 economies of the year 2020. This paper seeks to examine the tax framework to reflect the realities of modern transactions, establish a basis of taxation that arrests leakages and enables tax authorities to capture revenue that would otherwise have continued to leak. The researcher recommends the legal frame work of e-commerce taxation which has to be amended to reflect the global taxation principles of e-tax in our tax laws as a sovereign state so that investors and business carried on online should be taxed. Also that our tax policy and compliances to the regulatory authorities such as FIRS(Federal Inland Revenue Services)should be enforced on defaulting businesses, individuals and corporate entities as wells government agencies and departments to minimize tax evasion and avoidance.

Keywords: Assessment and E-Payment, Cybercrime, E-Commerce, ICT, Internet, Leakages, Legal Framework, Taxation