The effect of tax compliance and good governance in Nigeria

Abstract

The study examined the effect of tax compliance and good governance in Nigeria. It specifically investigated the effect of voluntary tax compliance on public accountability and transparency, enforcement tax compliance on government efficiency, tax avoidance on corruption control and tax evasion on good governance in Nigeria. This Study is predicated on the Traditional or Deterrence Theory of taxation, Political Legitimacy Theory, and Theory of Planned Behaviour. Secondary data source was explored in presenting the facts of the situation. Secondary data source was explored in presenting the facts of the situation. The secondary data were obtained from relevant literatures, Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics publications among other. Data were tested using the Ordinary Least Square Linear Regression model. From the Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics, information concerning voluntary tax compliance, compulsory tax compliance, tax avoidance and tax evasion were extracted. The findings revealed among other things that all the coefficients of the explanatory variables in model are all statistically significant to good governance except tax evasion. The study concluded that, voluntary and compulsory tax compliance are both component of tax compliance to enhance good governance for the development of the country. The study then recommends among others, that to ensure sustainable good governance , generation of tax revenue must be sufficient by complying with tax , efficiently and judiciously utilized. The government should pay attention to encouraging her citizens to build trust in it by tax accountability, ensuring that the promises made to the citizens are delivered.