Effect of Capital Allowance on Manufacturing Companies in Enugu State Nigeria
Abstract
This study examined the effect of capital allowance on manufacturing companies in Enugu state Nigeria. The study adopted the Survey research design while the primary source of data was the source of data engaged for the purpose of this study. Forty-five Staff members from three Accounting units of three manufacturing companies in Enugu state Nigeria were administered copies of the questionnaire. The study tested the research hypotheses with Z test statistical tool with the aid of the Statistical Package for Social Sciences (SPSS). Findings from this study revealed that Annual allowance have significant effect on the profitability of manufacturing companies in Enugu state. The study also revealed that initial allowance does not have significant effect on the efficiency of manufacturing companies in Enugu state. The study consequently recommends that all manufacturing companies in Enugu state should endevour to engage the services of professional Accountants for the purpose of maximum performance which are necessary for its survival and sustainability. It further recommends that, manufacturing companies in Enugu via their competent Accountants and Management should apply for annual and initial allowance as at when due on qualifying capital expenditure of the companies.
References
development in nigeria. International Journal of Development Strategies in Humanities,
Management and Social Sciences. 4 (2) 14-16
Agundu, P. U., & Ohaka, J. (2013). Capital allowance: captivating nuance of investment incentives in the
Nigerian manufacturing sector. Journal of Financial Management & Analysis, 26(2). 3-7
Anyafor, O. (2011). Public Finance In A Developing Economy: The Nigerian Case. Department of Banking and Finance University Of Nigeria Enugu Campus. Enugu.
Anyanwu, J. C. (2011). Nigeria Public Finance .Onitsha: Joanne Educational Publishers.
Appah, E. (2009). Principles and Practice of Nigerian Taxation .Port Harcourt: Ezevin Mint
Printers and Publishers.
Aguolu, O. (1999): Taxation and Tax Management in Nigeria (Revised Edition) Enugu, Meridian
Associates
Chukwumerije, T. & Akinyomi, O. (2011). The impact of tax incentives on the performance of small-
scale enterprises, Published Thesis, (pp.72-77) Redeemer’s University, Ogun State, Nigeria
Companies Income Tax, Amendment Act, (2007)
Donald Johnson (1980): Corporate Taxation. London: Oxford Press Ltd
Elezue, F. A. (1984): Statistic for business. Enugu: University Press.
Ezejelue A. C. & Ihendinihu (2006): Basic Principles in managing Research Projects. Onitsha: Africana –
Associates
Federal Republic of Nigeria (1990), Companies Income Tax Act CAP 60 LFN, Lagos, Federal
Government Printer.
Finance (Miscellaneous Taxation Provisions) Decree, 1996
Finance (Miscellaneous Taxation Provisions) Decree, 1998.
ICAN (2019), “Advanced Taxation”
Ihenyen, C. J. & Mieseigha, E. G. (2014) Taxation as an instrument of economic growth (The
Nigeria perspective), Information and Knowledge Management, 4(12), 49 – 53 .
Ivan ,K. (2016). World Development Indicators (WDI), Quarterly Update.
Kiabel, N. (2001). Selected aspects of Nigeria taxes. Owerri: Spring Field Publishers ltd.
Lawrence, J. B. (1999). History of income legislation in Nigeria. Lagos: Unilag Lagos.
Macek, R. (2014) The impact of taxation on economic growth: Case study of OECD Countries,
Review of Economic Perspectives, 14(4), 309 – 328.
Musgrave, R.A. & P.B. Musgrave, (2004). Public finance in theory and practice. 5th Edn., New
Delhi: Tata McGraw Hill.
Musgrave, R. & Musgrave, P., (2004). Public Finance in Theory and Practice. New Delhi, India:Tata McGraw Hill.
Nwanyanwu, K.U, and Nkpolu, O. (2018),” Capital Allowance and Net Profit Margin of Quoted Agro-
Allied Companies in Nigeria” Journal of Accounting and Financial Management ISSN 2504-
8856 Vol. 4 No. 3
Ogbonna, G. N. & Appah, E. (2012) Impact of tax reforms and economic growth of Nigeria,
Current Research Journal of Social Sciences, 4(1), 62 – 68.
Poulson, B. W. & Kaplan, J. G. (2008) State income taxes and economic growth, Cato Journal,
28(1), 53 – 71.
Stoilova, D. & Patonov, N. (2012) An empirical evidence for the impact of taxation on
economic growth in the European Union, Book of Proceedings – Tourism and
Management Studies International Conference, Portugal, Algarve, V(3), 1031 - 1039