Get the complete project »
- The Complete Research Material is averagely 80 pages long and it is in Ms Word Format, it has 1-5 Chapters.
- Major Attributes are Abstract, All Chapters, Figures, Appendix, References.
- Study Level: BTech, BSc, BEng, BA, HND, ND or NCE.
- Full Access Fee: ₦4,000
1.1 BACKGROUND TO THE STUDY
One of the common tools for macro- economic development in developing countries is tax incentives. Government tries to attract domestic and foreign capital using tax incentives to boost her economic activities. Many countries have determined that the tax incentives covered by the tax incentive provision should be defined precisely to ensure that tax incentive is granted only for an agreed concession. These countries have concluded that general references to special incentive laws are designed to promote economic development. This is commonly done through a direct reference to domestic legislation.
Tax incentives are generally intended to encourage the start-up of new operations. It has therefore been found appropriate in some treaties to place a time limit on the availability of the tax sparing relief for each tax payer, thereby preventing tax sparing from becoming a permanent concession.
Every investor will consider the host country’s tax system in their investment decisions along with other important matters such as security of lives and properties, infrastructural facilities, political and economic policies.
Tax incentives are measures that provide for more favorable tax treatment of certain activities or sectors compare to what is generally obtainable.
Under this description, a general cut in the tax rate or generous depreciation scheme applicable to all firms would not be considered as tax incentives (Klemm 2009:3)
In order words, tax incentives are special arrangements in tax laws to attract, retain or increase investment in a particular sector or for a particular purpose over a given period of time.
Nigeria’s economic decline since the 1980’s has created a hostile environment that is unfavorable to entrepreneurial success. The Nigerian infrastructure limits entrepreneurial effectiveness and is a barrier to success. The high cost of carrying out business operations in Nigeria, such as the lack of adequate supply of electricity and other basic amenities. Tax incentives are not sufficient to investors without favorable business environment especially needed infrastructure that will enable them to compete in price, quality and quantity internationally.
The main argument of this study is based on the pressures caused by the unemployment and tax incentives are mainly analyzed as a tool of entrepreneurship attraction to reduce the pressure of unemployment. Empirical analysis is used to illustrate the effects of tax incentives, highlighting pioneer tax incentives. The new and old arguments are combined to produce a set of criteria that can be used to evaluate tax incentives. As an additional innovation, this study inevitably repeats many well-known points of the area of study in order to provide a self contained discussion of the issue.
A good economic development policy should contain the following elements.
a. GOALS AND OBJECTIVES
Goals and objectives create a context for accountability as regards the use of economic and developmental incentives. Common goals used in economic development include targeted economic sector growth, business retention and/or recruitment, geographic focus, job creation, light mitigation, improving on distressed areas and environmental improvements.
b. FINANCIAL INCENTIVES TOOLS AND LIMITATIONS
An economic development policy should define the type of incentives and the extent to which the government will use them. For example, the government may decide to grant an entitlement to any firm that meets the minimum required qualification or may choose to provide incentives based on the assessment of individual firms. Government may also establish maximum funding for a particular process.
c. EVALUATION PROCESS
A clearly defined evaluation process should be outlined in an economic development policy for the purpose of consultancy and transparency which include:
i) How the purpose of the tax incentive measures up to establish development criteria.
ii) A cost benefit analysis
An evaluation of a tax based impact both in terms of increase in taxable value.
Economic and industrial development incentives Act (2008) both financial and non-financial include a broad range of tools ranging from expected planning processes to direct or indirect funding. Government often use these incentives to pursue specific economic goals such as tax base diversification, job creation, business retention, and expansion that are usually set by the government which consists of both the federal, state and local practice. The use of financial incentives to benefit private parties introduces risk factors which are not generally present in other public financial management areas. For this reason, economic incentives must be based on
a policy that establishes parameters for their appropriation in developmental goals of the government.
relation to the economic
It is therefore desirable that a research with emphasis on the significance of tax incentives and infrastructural development be conducted.
1.2 STATEMENT OF THE PROBLEM
There are different views on the introduction of tax incentives as a catalyst economic growth and development. Empirical studies like those of (Sanni 2002) and (Dotun 2009) has reported different views on tax incentives as a catalyst for economic growth and development. A school of thought believes that tax incentive propels economic growth and development while others believes that it reduces revenue to the government therefore it is counter- productive, as there will be no means of financing government projects.
However, most of the economic measures put in place by government in the past to stimulate economy have not yielded significant positive result hence tax incentive cannot be held responsible for economic stagnation.
Litwack (2013) argues that seventy million Nigerians are poor. According to World Bank (2012) Nigeria country profile statistics indicates an income inequality of 0.49; this is correlated with differential access to infrastructural amenities.
This problem of high poverty rate due to youth unemployment may be solved by the influence of local and foreign direct investment to some extent but the question is whether or not tax incentives are the right approach to solve them, when there is no model for measuring the influence of tax incentives in investment.
An advantage of tax incentives is that it is used for infrastructural development and entrepreneurship. But, most tax experts, consultants, Individuals and economic analysts ignored or criticized the incentive for the following reasons:
You either get what you want or your money back. T&C Apply
You can find more project topics easily, just search
SIMILAR ACCOUNTING FINAL YEAR PROJECT RESEARCH TOPICS
1. THE SIGNIFICANCE OF ACCOUNTING STANDARD IN THE PREPARATION OF FINANCIAL STATEMENT OF AN ORGANIZATION» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY CHAPTER ONE INRODUCTION 1.1 Background to the Study The basic purpose of accounting standards is ...Continue Reading »
» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Several studies have been carried out in Nigeria to find out why many government parastatals or i...Continue Reading »
» ABSTRACT Wh movement is a transformational process which causes the displacement of a wh element from its base generated position to string initial po...Continue Reading »
4. FINANCIAL CONTROL IN A COMPUTERIZED ACCOUNTING SYSTEM (A CASE STUDY OF FIRST BANK OF NIGERIA PLC)» CHAPTER ONE 1.0 INTRODUCTION In the ancient days, human activities were relatively easy. The difficulties posted by nature then, were considerably sim...Continue Reading »
» ABSTRACT The research seeks to examine effectiveness of team work and participation of employees in the decision making process in private and public ...Continue Reading »
6. FORENSIC ACCOUNTING AS A TOOL FOR FRAUD DETECTION AND PREVENTION ( A CASE STUDY OF ETI OSA LOCAL GOVT:» ABSTRACT This study was intended to evaluate the extent to which forensic accounting can be used as a tool in fraud detection. This study was guided b...Continue Reading »
7. THE USE OF SALES PROMOTION IN THE DISTRIBUTION OF DRUGS A CASE STUDY OF RHOKYN PHARMACY AND STORES» CHAPTER ONE INTRODUCTION 1.0 BACKGROUND OF THE STUDY An organization can be viewed as successful if it can achieve its planned objectives and set goal...Continue Reading »
8. MAINTAINANCE AND UPGRADING THE SOLAR POWER SYSTEM IN EEED TOWARDS PROVIDING ALTERNATIVE POWER SOURCE DURING WORKING/LECTURE HOURS WHEN THERE IS AN OUT...» CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY Photovoltaic (PV) offers consumers the ability to generate electricity in a clean, quiet and reliable...Continue Reading »
9. COMPARATIVE ANALYSIS OF ANTIMICROBIAL STRENGTH OF THREE MOST COMMON ANTIBIOTICS USED IN ENUGU (CASE STUDY OF ANTIBIOTICS DRUGS BROUGHT IN OBIAGU.)» INTRODUCTION 1.1 HISTORICAL BACK GROUND Antibiotics are chemicals when the chemical are put into the body; they stop the growth of kinds of germs. The...Continue Reading »
10. WORKING CAPITAL MANAGEMENT AS A TOOL FOR COST MINIMIZATION AND PROFIT MAXIMIZATION (A CASE STUDY OF ANAMBRA MOTOR MANUFACTURING COMPANY ENUGU).» ABSTRACT The objective of this research work contains working capital management as a tool for minimization and profit maximization with particular re...Continue Reading »