This study examines the effect of the 2007 reform pertaining to the corporate
tax system on the tax burden of listed firms in Nigeria using the “t” test and
canonical correlation analysis. Data were collected from the financial statements
of the 86 sampled firms for the period 2003-2011 subdivided into
pre-reform (2003-2006) and post reform (2008-2011) sub-periods for the
purpose of comparing periods’ tax burdens. Data were also segregated along
the Nigerian Stock Exchange industrial sector classifications. This study finds,
on the whole, that the 2007 corporate tax reform has brought no additional
tax burden on listed firms, however, sectoral analysis reveals the heterogeneity
in the effect of the tax reform as firms within the agricultural and natural
resources sectors witnessed increases in tax burden while firms in health and
oil and gas sectors were favoured with reduced tax burden. The tax burden of
other sectors is unaffected by the reform.
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