IMPACT OF TAXATION ON BUSINESS DECISIONS IN NIGERIA

This study explores the impact of taxation on business decisions, particularly within corporate entities on Lagos Island, Nigeria. Taxation serves as a critical source of revenue for the government, influencing various aspects of business operations, including financing, investment, and dividend policies. The study aims to understand the role of taxation in business decision-making and to examine the relationship between taxation and business decisions. Utilizing a survey research design, data were collected from 100 management staff members of corporate businesses through a structured questionnaire. The findings reveal that taxation plays a significant role in sound business planning, influences business expenses, and affects return on investment and dividend payment policies. Moreover, the study establishes a positive relationship between taxation and business decision-making, highlighting that taxation can both incentivize and deter business activities depending on its structure. The research concludes that effective tax planning is essential for businesses to maximize profitability and minimize tax liabilities. Recommendations include recognizing tax management as a crucial business function, planning transactions with tax implications in mind, and leveraging professional services for tax planning. This study contributes valuable insights for financial managers and policymakers, emphasizing the need for strategies that optimize the impact of taxation on business decisions.