Tax Payment, Deferred Tax Liability and Tax Compliance of Listed Multinational Corporations in Nigeria

Tax compliance among multinational corporations in Nigeria remains a critical issue due to persistent challenges such as tax evasion, aggressive tax avoidance strategies, and ineffective enforcement mechanisms. This research examines the relationship between tax payment, deferred tax liabilities and tax compliance in Nigerian-listed multinational corporations. Using panel data from 31 multinational corporations listed on the Nigerian Exchange Group, spanning from 2010 to 2024, this study employs panel regression techniques with the help of E-view 12 statistical software to analyze the dynamics of tax compliance. The findings reveal that while tax payment percentage (TPP) has a positive and insignificant effect on total taxes paid (TTP), deferred tax liabilities percentage (DTLP) have a negative but significant effect on total tax paid, suggesting that corporations with higher deferred tax liabilities tend to defer their tax obligations, leading to a delay in tax compliance obligations. The study recommends that Nigerian tax authorities introduce more transparent reporting requirements for deferred tax liabilities and enforce stricter regulations to mitigate aggressive tax avoidance practices among multinational corporations.

Tax Payment, Deferred Tax Liability

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