Moderating Effect of Tax Shield on the Relationship Between Profit and Revenue Growth on Income Tax Compliance of Listed Manufacturing Companies in Nigeria

This study investigates the moderating effect of tax shield on the relationship between profit and revenue growth and income tax compliance among listed manufacturing companies in Nigeria. Using panel data from 44 listed manufacturing firms over the period 2014 to 2024, the study employs descriptive statistics, correlation, and multiple regression analyses with STATA 17. Findings reveal that revenue growth has a positive and significant effect on income tax compliance, while profit growth has no direct significant effect. Tax shield exhibits a negative and significant effect on compliance and moderates the growth–compliance relationship differently: it negatively moderates the relationship between revenue growth and compliance but positively moderates that between profit growth and compliance. The study concludes that although some aspects of firm growth enhances compliance, misuse of tax shields can undermine it. The Federal Inland Revenue Service (FIRS) should strengthen monitoring and disclosure requirements on tax shield utilization to promote responsible tax planning.