Good Governance and Personal Income Tax Compliance in Nigeria. (Published)
This study is to examine the good governance and personal income tax compliance in Nigeria and study basically adopt the survey research design in which structured questionnaire is designed and distributed to the respondents as a means of gathering information. population of this study comprises of all the staff of Adekunle Ajasin University, Akungba-Akoko, Ondo State, Nigeria and the total number of staff as at 31st December, 2020 is one thousand four hundred and fifty (1450). The classes of personnel to be administered with the questionnaire include senior staff, junior staff and the management staff. Because of the sensitive nature of the study, and to ensure a credible and reliable data, the population cuts across all categories of workers. with the sample size of 314, a multiple regression model is specified in equation (i). This multiple regression econometric models explain the variation in the values of the dependent variable (Personal Income Tax Compliance) on the basis of change in other independent variables (Perception of tax payer of a good governance, Tax fairness). Panel Least Square (PLS) regression technique was used for the study. It was discovered that there is significant relationship between tax fairness and personal income tax in Nigeria and also there are perceptions of tax payers towards good governance and personal income tax compliance in the country. Specifically, tax fairness enhances the personal income tax compliance among the sampled respondents and perception tax payer of a good governance contribute significantly to the personal income tax compliance. The study concluded that if tax fairness is well enhanced, tax payer will be highly interested in paying their personal income tax. The problem of lack of compliance is common among the informal sector who often bear the brunt of the bad governance. It is obvious that tax compliance will increase if good governance can be perceived by the people. Respondents are ready to comply with the law but the revenue collected must be judiciously used.
Keywords: Good Governance, Tax Compliance, perception of tax payers, personal income tax, tax fairness