IDEAS home Printed from https://ideas.repec.org/a/dug/actaec/y2018i5p86-97.html

Effects of Transfer- Pricing Regulations and Compliance on Tax Administration in Nigeria

Author

Listed:
  • Gideon Tayo Akinleye

    (Ekiti State University)

  • Clement Olatunji Olaoye

    (Ekiti State University)

  • Bamikole Samson Fajuyagbe

    (Ekiti State University)

Abstract

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.

Suggested Citation

  • Gideon Tayo Akinleye & Clement Olatunji Olaoye & Bamikole Samson Fajuyagbe, 2018. "Effects of Transfer- Pricing Regulations and Compliance on Tax Administration in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 14(5), pages 86-97, OCTOBER.
    • Handle: RePEc:dug:actaec:y:2018:i:5:p:86-97
    as

    Download full text from publisher

    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/4803/4583
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sikka, Prem & Willmott, Hugh, 2010. "The dark side of transfer pricing: Its role in tax avoidance and wealth retentiveness," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(4), pages 342-356.
    2. Mr. Vito Tanzi, 2000. "Globalization, Technological Developments, and the Work of Fiscal Termites," IMF Working Papers 2000/181, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simplice A. Asongu & Rexon T. Nting & Evans S. Osabuohien, 2019. "One Bad Turn Deserves Another: How Terrorism Sustains the Addiction to Capital Flight in Africa," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 501-535, September.
    2. Simplice Asongu, 2015. "Rational Asymmetric Development: Transfer Mispricing and Sub-Saharan Africa’s Extreme Poverty Tragedy," Working Papers of the African Governance and Development Institute. 15/054, African Governance and Development Institute., revised Aug 2015.
    3. Simplice A. Asongu & Joseph I. Uduji & Elda N. Okolo-Obasi, 2019. "Transfer pricing and corporate social responsibility: arguments, views and agenda," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(3), pages 353-363, November.
    4. Simplice A. Asongu, 2015. "Rational Asymmetric Development: Transfer Pricing and Sub-Saharan Africa’s Extreme Poverty Tragedy," Research Africa Network Working Papers 15/017, Research Africa Network (RAN).
    5. Simplice A. Asongu, 2015. "Rational Asymmetric Development: Transfer Mispricing and Sub-Saharan Africa’s Extreme Poverty Tragedy," Research Africa Network Working Papers 15/054, Research Africa Network (RAN).
    6. Simplice Asongu, 2015. "Rational Asymmetric Development: Transfer Pricing and Sub-Saharan Africa’s Extreme Poverty Tragedy," Working Papers of the African Governance and Development Institute. 15/017, African Governance and Development Institute..
    7. Bruno S. Frey, 2003. "Flexible Citizenship for a Global Society," Politics, Philosophy & Economics, , vol. 2(1), pages 93-114, February.
    8. M.A. Gulzar & Jacob Cherian & Muhammad Safdar Sial & Alina Badulescu & Phung Anh Thu & Daniel Badulescu & Nguyen Vinh Khuong, 2018. "Does Corporate Social Responsibility Influence Corporate Tax Avoidance of Chinese Listed Companies?," Sustainability, MDPI, vol. 10(12), pages 1-12, December.
    9. Jones, Chris & Temouri, Yama, 2016. "The determinants of tax haven FDI," Journal of World Business, Elsevier, vol. 51(2), pages 237-250.
    10. Apostol, Oana & Pop, Alina, 2019. "‘Paying taxes is losing money’: A qualitative study on institutional logics in the tax consultancy field in Romania," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 58(C), pages 1-23.
    11. Ligthart, J.E., 2004. "Consumption Taxation in a Digital World : A Primer," Other publications TiSEM 46537bf7-4822-4dbe-b3fa-f, Tilburg University, School of Economics and Management.
    12. Cintra, Marcos, 2009. "Bank transactions: pathway to the single tax ideal A modern tax technology;the Brazilian experience with a bank transactions tax (1993-2007)," MPRA Paper 16710, University Library of Munich, Germany.
    13. Leonce Ndikumana, 2014. "International Tax Cooperation and Implications of Globalization," CDP Background Papers 024, United Nations, Department of Economics and Social Affairs.
    14. Neu, Dean & Saxton, Greg & Rahaman, Abu & Everett, Jeffery, 2019. "Twitter and social accountability: Reactions to the Panama Papers," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 61(C), pages 38-53.
    15. Andrew, Jane & Baker, Max & Cooper, Christine & Tweedie, Jonathan, 2024. "Wealth taxes and the post-COVID future of the state," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 98(C).
    16. Sikka, Prem, 2013. "Smoke and mirrors: Corporate social responsibility and tax avoidance—A reply to Hasseldine and Morris," Accounting forum, Elsevier, vol. 37(1), pages 15-28.
    17. Arie Pratama, 2020. "Corporate governance, foreign operations and transfer pricing practice: the case of Indonesian manufacturing companies," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 24(2), pages 185-200.
    18. Alvehus, Johan & Spicer, André, 2012. "Financialization as a strategy of workplace control in professional service firms," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 23(7), pages 497-510.
    19. K. V. Mukundhan & Sreevas Sahasranamam & James J. Cordeiro, 2019. "Corporate investments in tax havens: evidence from India," Asian Business & Management, Palgrave Macmillan, vol. 18(5), pages 360-388, November.
    20. Chen, Yilan & Lei, Shaohai, 2025. "Tax avoidance opportunity for multinational enterprises: effects of digitalized tax administration in China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 102(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dug:actaec:y:2018:i:5:p:86-97. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniela Robu (email available below). General contact details of provider: https://edirc.repec.org/data/fedanro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.