Religiosity as a moderating variable on the effect of love of money, Machiavellian and equity sensitivity on the perception of tax evasion

Pande Putu Ditha Purnamasari,Maria M Ratna Sari,Gayatri Gayatri,I Made Sukartha

doi:10.5267/j.ac.2021.1.004

Pande Putu Ditha Purnamasari, Maria M Ratna Sari + Show 2 more

Open Access

https://doi.org/10.5267/j.ac.2021.1.004

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Journal: Accounting	Publication Date: Jan 1, 2021
Citations: 3	License type: cc-by

Affiliation: Udayana University

Abstract

This study aims to obtain an empirical evidence on how religiosity is moderating the effect of love of money, Machiavellian, and equity sensitivity on the perception of tax evasion. The populations in this study are individual taxpayers registered in all Pratama tax offices in Bali. Sampling was determined using the probability sampling method with proportional stratified random sampling technique. This study uses 400 research samples. The data analysis technique used is multiple linear regression analysis and moderated regression analysis. The test results provide empirical evidence that love of money and Machiavellian have a positive effect on the perception of tax evasion, however, equity sensitivity has no effect on the perception of tax evasion. The results of subsequent tests provide empirical evidence that intrinsic religiosity and extrinsic religiosity can moderate the effects of love of money, Machiavellian, and equity sensitivity on perceptions of tax evasion.

Highlights

This research was conducted based on the phenomenon of how taxpayer compliance is related to tax reporting
The results of this study have indicated that love of money and machiavellian nature have positive effects on the perception of tax evasion, but equity sensitivity has no effect on the perception of tax evasion
The subsequent test results have provided empirical evidence that intrinsic religiosity and extrinsic religiosity can moderate the effects of love of money, machiavellian nature, and equity sensitivity on perceptions of tax evasion

Summary

Introduction

This research was conducted based on the phenomenon of how taxpayer compliance is related to tax reporting. According to McGee and Shopovski (2018) taxes are the main instrument to finance State activities in providing public goods and services. From this definition, it shows that there is one party that is obliged to pay taxes (the people) but the other party (the government) is not obliged to provide direct fees to the taxpayers (the people). The percentage of compliance has not reached 100%, which means there are still WPOPs who are not yet compliant to pay taxes, so that the tax revenue obtained is not optimal This indicates that the practice of tax evasion has occurred in Indonesia. If taxpayers and tax officers commit tax evasion, it will damage individual morale where taxpayers who were previously tax-compliant will have the thought of committing tax evasion due to the possibility of tax evasion being not detected by the tax authorities, and other taxpayers do the same

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