ANALYSIS OF THE IMPACT OF TAX OUTFLOWS ON THE FINANCIAL PERFORMANCE OF CORPORATE FIRMS IN NIGERIA

This study analyzed the impact of tax outflows on the financial performance of corporate firms in Nigeria. The objectives were to examine the effect of company income tax on profit for the year and determine the extent to which education tax affect profit for the year of Nigerian manufacturing firms. The study adopted ex-post facto research design. The population of the study comprises all the twenty-five (25) manufacturing firms listed on the Nigeria Stock Exchange as at 31st December, 2024. Multiple (Panel Least Squares) regression analysis were used as the main tool of analysis for test of hypotheses formulated for the study while t-statistics was used as a supporting tool of analysis. The study found that company income tax has positive and significant effect on return on assets of Nigerian manufacturing firms with t-statistics of 7.548348 which was greater than 2.0 and probability value of 0.0000 which was less than 0.05. It was also observed that education tax has positive and significant effect on return on assets of Nigerian manufacturing firms with t-statistics of 4.979062 which was greater than 2.0 and probability value of 0.0011 which was less than 0.05. In conclusion, the findings of this study reveal a consistent pattern of positive and significant effects of Company Income Tax and Education Tax, on the return on assets of Nigerian manufacturing firms. It was recommended among other things that Nigerian manufacturing firms should engage in proactive tax planning and management strategies to optimize the positive impact of various taxes on return on asset. This involves aligning business operations to efficiently utilize assets and meet tax obligations, ultimately enhancing financial performance.