The impact of tax payers in perception of good governance on Voluntary tax Compliance in Lagos Nigeria

ABSTRACT Good governance, with respect to how organisations or states are managed has assumed a

prominent position in the private and public domains (Abdellatif, 2003; Mbao and Komboni, 2008; Owojori, Akintoye and Adidu, 2009). A review of literature suggests that good governance is very key to tax compliance (Maffry, 1997; Carstens, 2005; Ribadu, 2006; Friedman, 2009; Iwuagwu, 2009; Lu, Huang and Lo, 2010). According to Graham and Bruhn (2009), the decision to impose taxes is not based simply on sober fiscal analysis, but is rather an intensely political decision. They remarked further that “in a democracy, government tax decisions are the outcomes of a critical relationship underlying taxing and spending: the relationship between citizens and their elected government” (Graham and Bruhn, 2009, p. 2). Good governance in this study essentially refers to accountability and transparency, reduction in fiscal corruption, efficient and effective tax administration, efficient and effective tax laws and tax policies and socio-economic considerations (such as the social life style of taxpayers, influence of money on individuals as a result of harsh economic condition, income level of taxpayers, family pressure, influence of peer group and colleagues in the work place).