CORPORATE OWNERSHIP STRUCTURE AND AGGRESSIVE TAX PLANNING PRACTICES IN NIGERIA

ABSTRACT

This study thoroughly investigated the impact of corporate ownership structure on aggressive tax planning practices within Nigerian manufacturing firms, employing an ex-post facto research design. Specifically, the study aimed to determine the influence of managerial ownership, foreign ownership, and ownership concentration on aggressive tax planning practices in Nigerian manufacturing firms. The research design utilized an ex-post facto approach, with a focus on the industrial goods sector, comprising all fifteen listed companies in the sector as the sample size. Data for the study were sourced from the annual reports of these companies for the financial years spanning 2017 to 2021. The study's results revealed that managerial ownership, foreign ownership, and ownership concentration significantly affect the likelihood of engaging in aggressive tax planning. These findings underscore the significance of considering ownership characteristics when analyzing tax planning decisions and suggest the necessity for increased regulatory oversight. Recommendations emerging from this study encompass the implementation of stricter regulatory measures, the enhancement of transparency and disclosure regarding tax planning practices, further research to delve into the subtleties of ownership, and a review of tax policies to address the challenges posed by aggressive tax planning.