AN EMPIRICAL ANALYSIS OF THE ADOPTION AND EXECUTION CHALLENGES OF TRANSFER PRICING REGULATIONS IN NIGERIA
AN EMPIRICAL ANALYSIS OF THE ADOPTION AND EXECUTION CHALLENGES OF TRANSFER PRICING REGULATIONS IN NIGERIA

Summary/Abstract: This research aims at empirically analyzing the adoption and execution challenges of transfer pricing regulations in Nigeria. Adopting the descriptive survey technique, structured questionnaires were administered to 114 respondents comprising accountants, auditors, lawyers and tax practitioners spread across accounting firms in South-south Nigeria. The study examined the factors that influence the execution of transfer pricing regulations in Nigeria coupled with the barriers to the effective adoption and execution of transfer pricing regulation in Nigeria. The results indicate a significant positive relationship between transfer pricing regulation and the features of transfer pricing adoption and execution with a correlation coefficient of 0.271 (p = 0.004). Also, there exists an inconsequential relationship of 7.6% (p = 0.432) between features of transfer pricing adoption and execution and barriers to transfer pricing adoption and execution. Consequently, it is recommended that the Federal Inland Revenue Service (FIRS) in collaboration with the Financial Reporting Council of Nigeria FRCN should fine-tune the existing transfer pricing regulations to address the barriers to its faithful implementation while reinforcing the existing administrative and human capabilities of current policy operations in the country.

• Details
• Contents