Abstract: THE CHALLENGES ASSOCIATED WITH THE TAXATION OF CAPITAL GAINS AND INVESTMENT INCOME
This study examines the challenges associated with the taxation of capital gains and investment income in Port Harcourt. The objectives are to understand the primary tax challenges investors face, assess the impact of taxation on investment decisions, and evaluate potential solutions to improve compliance and investment outcomes. Using a survey design, data was collected from 250 investors, derived using Taro Yamane's formula. A case study of a prominent investment firm in Port Harcourt was conducted for detailed analysis. The reliability coefficient score was 0.85. Findings reveal that the main challenges include complex tax regulations, high tax rates, and difficulties in calculating capital gains. Recommendations include simplifying tax regulations, reducing tax rates on investment income, and providing more guidance to investors on tax compliance.
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