Examining the effect of corporate taxation planning on the financial performance of listed financial and non-financial institutions in ghana.

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Tax planning activities include tax avoidance and tax evasion schemes that affect the financial plans of banks due to changes in national tax laws. Tax planning schemes reduce the tax burden of firms through extensive outsourcing and higher levels of pre-tax income leading to higher profits. Assuming the firm does not change, the fewer income taxes increased by firms become lower after-tax income before taxes profit, because the cost of tax avoidance is lower than for firms with lower before-tax gross income. The study aimed at identifying the impact of effective tax rate on tax planning for financial and nonfinancial organizations. A comparison was done between the tax planning determinants of financial and nonfinancial organizations. The used data from the annual reports of 12 listed financial and nonfinancial organizations. The study concludes that tax planning measured with effective tax planning improves the financial performance of financial organizations. Firm size has also shown that the financial performance of financial organizations is positively affected when the organization’s size improves.
A thesis submitted to the department of accounting and finance, college of humanities and social sciences, in partial fulfillment of the requirements for the award of the degree of master of science in accounting and finance