There is a general perception that the tax man reaps where he has not sown. There is some verity in this statement in that the tax man would wait for you to patiently cultivate your business and when it begins to yield fruits, he would demand a slice of your profits. This slice could be up to 30% if you are a corporation.

In a country such as ours, where corruption is endemic, many corporations would seek different avenues to reduce their taxes. The legal avenues for tax reduction is called tax planning which is an acceptable practice everywhere in the world whereas, the extra legal avenues would constitute tax evasion, a criminal offence. It is imperative to note that no one has been convicted for evasion yet in Nigeria even where it is proven that companies are engaged in “tax settlement” rather than paying what is due. A potent example of this is a forensic report of the NSE that was widely circulated a while back.

That report mentioned payment of 14million naira to a certain “Bamidele Nasiru” who is described as a Lagos State Internal Revenue Service (LIRS) Consultant. This amount was clearly not paid to the LIRS as taxes due to Lagos State but was paid as “settlement” to the consultant to reduce the potential liability of the NSE. Haba!! The NSE that is supposed to be the very symbol of integrity and regulatory compliance. The perpetrators are still walking the streets as free men. No wonder it is not happenstance that many companies fail to see the correlation between the value of their stock and their level of tax compliance.

Read More........http://myfinancialintelligence.com/index.php/2011-09-27-04-13-15/taxation/21937-adherence-to-tax-governance-a-your-investment-decisions

Effect of Company Income Tax on Investment Decisions. (A Study of Coca-Cola Aba in Abia State)

Importance of tax system the modern day governance cannot be over-emphasized. Tax revenue provides one of the easiest and most convenient means of meeting ever increasing public expenditure. It is therefore imperative that every government no matter its nature and type put in place an efficient, effective and equitable tax system...

http://www.scharticles.com/effect-of-company-income-tax-on-investment-decisions/