Operators, who described the development as a huge disincentive to economic growth, and the use of Nigeria as headquarters for group entities, noted that companies are forced to pay tax out of their capital if they make losses or small profits.
These were observations raised at the 2nd Annual International Academic Conference on Taxation by the Chartered Institute of Taxation of Nigeria , in collaboration with Babcock University, Ogun State, themed, ‘Taxation and Business Sustainability’.Participants argued that taxes should be paid only once on actual profit made, not twice given that such start-up companies are often too fragile and therefore unable to bear the extra burden.
Similarly, the President and Vice Chancellor of Babcock University, Prof Ademola Tayo, urged government to implement sustainable economic policies and business models, which foster favourable environment for small, medium and large scale enterprises.