Knowledge of Fraud and Taxpayer Compliance

Sigit Handoyo,Hardhika Maghribi Candrapuspa

doi:10.15294/jejak.v10i2.11303

Abstract

Fraud is a unique crime committed by many people in various activities including in the tax sector that resulted in losses to the state. A research conducted in 2015 aimed at examining the factors that influence the taxpayer compliance in paying taxes with knowledge of fraud as a moderating variable. This research used Banguntapan city taxpayers as respondents. Sample collection method in this research used the convenience sampling method. The analytical tool used is Structural Equation Model (SEM) with the help of SmartPLS software. The results of this research prove that tax sanctions, service quality, and tax penalties have a positive effect on taxpayer compliance. The results of this research also prove that taxpayer knowledge does not positively affect the taxpayer compliance and also prove that the taxpayer interaction and knowledge of fraud have a positive effect on their tax paying compliance. So the implications of this research expect that tax authorities can apply tax laws in which including sanctions and taxes penalties evenly in each level of the taxpayers and improvement of services in the field of taxation in the form of provision of information to the taxpayers.Fraud is a unique crime committed by many people in various activities including in the tax sector that resulted in losses to the state. A research conducted in 2015 aimed at examining the factors that influence the taxpayer compliance in paying taxes with knowledge of fraud as a moderating variable. This research used Banguntapan city taxpayers as respondents. Sample collection method in this research used the convenience sampling method. The analytical tool used is Structural Equation Model (SEM) with the help of SmartPLS software. The results of this research prove that tax sanctions, service quality, and tax penalties have a positive effect on taxpayer compliance. The results of this research also prove that taxpayer knowledge does not positively affect the taxpayer compliance and also prove that the taxpayer interaction and knowledge of fraud have a positive effect on their tax paying compliance. So the implications of this research expect that tax authorities can apply tax laws in which including sanctions and taxes penalties evenly in each level of the taxpayers and improvement of services in the field of taxation in the form of provision of information to the taxpayers.

Highlights

The dominance of taxes as a source of revenue is a very reasonable thing because this source of revenue has unlimited age, especially with the increasing number of people who are increasing each year
The purpose of this research is to test and provide empirical evidence that there is influence of taxpayer's knowledge of taxation, services provided by tax office, tax sanction applied to the taxpayer, and tax penalty given to taxpayer compliance
Various efforts have been made by the government in an effort to attract the public cash to increase the State's cash for state expenditures

Summary

Introduction

The dominance of taxes as a source of revenue is a very reasonable thing because this source of revenue has unlimited age, especially with the increasing number of people who are increasing each year. Tax revenues are not dependent on foreign aid and there is no obligation to provide a half of the country's revenue to the creditor country as a form of interest payments on foreign loans In this case, the number of the tax revenue will determine the capacity of the state budget in financing the state expenditure both for development financing and for routine budget financing. Taxation has a positive effect on the economic growth in both the developed and developing countries It is not excessive if every budget year of the state budget (APBN), the government always tries to increase the tax revenue to finance the development that has been carried out (Simanjuntak, 2009)

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