Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between presumptive tax assessment and internally generated revenue has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of the Nigerian Capital Market where operating conditions differ markedly from more developed markets.

Within the context of the Nigerian Capital Market, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of presumptive tax assessment on internally generated revenue, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

While presumptive tax assessment is widely discussed in policy and industry circles, empirical evidence on its actual effect on internally generated revenue within the Nigerian Capital Market remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to presumptive tax assessment are helping or hindering internally generated revenue — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Presumptive Tax Assessment on internally generated revenue in the Nigerian Capital Market.
2. To assess the extent to which presumptive tax assessment influences internally generated revenue within the study area.
3. To identify the challenges associated with presumptive tax assessment in relation to internally generated revenue.
4. To recommend strategies for optimizing presumptive tax assessment in order to improve internally generated revenue.

1.4 Research Questions

1. What is the effect of presumptive tax assessment on internally generated revenue in the Nigerian Capital Market?
2. To what extent does presumptive tax assessment influence internally generated revenue within the study area?
3. What challenges are associated with presumptive tax assessment in relation to internally generated revenue?
4. What strategies can be adopted to optimize presumptive tax assessment in order to improve internally generated revenue?

1.5 Significance of the Study

This study is significant to a range of stakeholders. For policymakers and regulators, the findings offer evidence to guide the design of frameworks that support healthier outcomes around internally generated revenue. For managers and practitioners within the Nigerian Capital Market, the study provides practical insight into how presumptive tax assessment can be better managed. Finally, it contributes to the academic literature on taxation by extending existing knowledge into a specific empirical context, and offers a reference point for future researchers.

1.6 Scope of the Study

The study is limited to an examination of Presumptive Tax Assessment and its relationship with internally generated revenue within the context of the Nigerian Capital Market. It reflects a clearly defined scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.