Centro de Documentação da PJ
Analítico de Periódico
CD 335
Tax avoidance in banking institutions [Recurso eletrónico] : an analysis of the top seven Nigerian banks / Dada Folorunso, Mark Eshwar Lokanan
Journal of Financial Crime, Vol. 30, n. 1 (2023), p. 167-204
Ficheiro de 615 KB em formato PDF.
INSTITUIÇÃO BANCÁRIA, FRAUDE FISCAL, FRAUDE BANCÁRIA, NIGÉRIA
Purpose – The purpose of this paper is to review the quantum and magnitude of tax avoidance in Nigeria’s top seven banks by using recognized tax avoidance proxies of the Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standard (IFRS) effective tax rate (ETR) and book-tax gap analysis for the appraisal. Design/methodology/approach – Data for the paper came from the annual reports of the banks between 2011 and 2019. The individual bank’s tax data was analyzed for trends and then consolidated to establish the average percentages and the exact amount of the tax the banks evaded each year and cumulatively over the review period. The data were then matched with analytics of the drivers of tax avoidance in the reconciliation statement to highlight essential tax planning items and strategies being exploited by each bank in the pursuit of aggressive tax avoidance behavior. Findings – F-test comparing the aggregate means (all banks) for tax evasion proxies of ETR and the booktax gap was conducted at a 95% confidence interval. The results of this paper indicate no significant difference between the means obtained, thus affirming that the same pattern of tax evasion was consistent among the banks for the years reviewed. Originality/value – The findings of this paper highlight the tax avoidance behavior of the referenced banks, identify weaknesses in the corporate tax planning policy pursued and serve to alert policymakers of the need to strengthen the laws and block loopholes that provide rooms for unrestrained tax avoidance behavior in the banking sector.
