Effects of Transfer- Pricing Regulations and Compliance on Tax Administration in Nigeria
This paper examines the effects of transfer- pricing regulation and compliance on tax administration in Nigeria. The paper uses a descriptive survey research design. Questionnaire was used as the research instrument for data collection. Analyses were made with ordered logit regression, Pearson pr...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Danubius University
2018-10-01
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| Series: | Acta Universitatis Danubius: Oeconomica |
| Subjects: | |
| Online Access: | http://journals.univ-danubius.ro/index.php/oeconomica/article/view/4803/4583 |
| Summary: | This paper examines the effects of transfer- pricing regulation and compliance on tax
administration in Nigeria. The paper uses a descriptive survey research design. Questionnaire was used
as the research instrument for data collection. Analyses were made with ordered logit regression,
Pearson product moment correlation, variance inflation factor (VIF) and white heteroskedasticity test.
Ordered logit regression reveals that transfer- pricing regulation had a tendency to significantly
influence tax administration with z-values of 2.8931 (p=0.00381) while transfer- pricing compliance
had an insignificant effect of 0.016 with z-values of 0.1335 (p=0.89379) on tax administration in
Nigeria at likelihood ratio test of Chi-square (2)= 25.7916 [0.0000]. This study implies that transferpricing
and its compliance has the capacity to improve the effectiveness and efficiency of tax
administration in Nigeria. Hence, we concluded that there is poor administration of transfer- pricing tax
policy in Nigeria. It is, therefore, recommended that Federal Inland Revenue Service should put in place
not only transfer- pricing laws but adequate machinery in terms of human and technological capital
coupled with sensitization on the applicability of the existing transfer- pricing tax policy in Nigeria. |
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| ISSN: | 2065-0175 2067-340X |