INFLUENCE OF SOCIALIZATION ON MSME COMPLIANCE BY MEDIATING UNDERSTANDING AND MODERATING KNOWLEDGE OF TAX VISITS

Abstract

This study aims to determine the role of tax knowledge in being able to strengthen the relationship between tax socialization and understanding of taxpayers and understanding of taxpayers being able to mediate the relationship of socialization of tax visits or picktime to 151 MSMEs in the "Selecta" destination, Batu City - East Java - Indonesia. This research is included in survey research, but from a number of MSMEs that are eligible for data analysis, there are 148 because 3 respondents are considered unfit for processing. Testing mediation and moderation using WarpPLS in order to determine the mediating role of the taxpayer understanding variable and the moderating role of the taxpayer knowledge variable. WarpPLS is also used to test the fit of external models which include convergent validity tests and composite reliability, compositer Realiability, Model Fit and Quality Indices. The results show that understanding taxpayers is able to mediate the impact of "Picktime" socialization on taxpayer compliance, while knowledge of tax visits can strengthen the relationship of tax visit socialization to taxpayer compliance, especially knowledge related to providing ease of use of the picktime application and being able to increase the influence of socialization on taxpayer understanding tax to get a queue number make a face-to-face appointment with the tax officer