RELATIONSHIP BETWEEN TAXATION AND PROFITABILITY OF LISTED BREWERIES IN NIGERIA (A STUDY OF GUINNESS NIGERIA PLC.

ABSTRACT This study examined the relationship between taxation and profitability of listed breweries in Nigeria. Specifically, this study ascertained the relationship between Company Income Tax, Value Added Tax, Education Tax and Return on Asset of Guinness Nigeria Plc. An ex-post facto research design was adopted for this study. Secondary data were carefully sourced from the Guinness Nigeria Plc’s financial statement and tax reports publication. The data span from 2018-2023. Ordinary least square regression test by aid of E-views 10.0 software was used to test the statistical relationship between Company Income Tax, Value Added Tax, Education Tax and Return on Asset of Guinness Nigeria Plc. The results showed that there is a significant and positive relationship between Corporate Tax (CT) and Return on Asset (ROA) of manufacturing companies in Nigeria. The findings further revealed that Value Added Tax (VAT) has a insignificant but positive relationship with the Return on Asset (ROA) of manufacturing companies in Nigeria. Finally, the result established also that Education Tax (Edu.T) payable has a insignificant and negative relationship with the Return on Asset (ROA) of manufacturing companies in Nigeria. Consequent upon the findings, the study recommends that The management of manufacturing companies should endeavour to establish strong internal control over its vatable supplies in order avert inverse relationship on profitability of Brewers.