Tax Compliance Model Based on Planned Behavior of Taxpayers Mediating Intention to Pay Taxes

Abstract

The main purpose of this research is to investigate a tax compliance model in which taxpayers' planned behavior mediates their intention to pay taxes, in order to provide strategic policy recommendations to the government and strengthen the implementation of the self-assessment system in Indonesia. The population used in this research comprised those taxpayers who reported their annual tax returns in Jakarta and West Java in the 2021 fiscal year. A sample of 229 respondents was selected using a purposive sampling method. The data were processed using Lisrel 8.80. This research combines quantitative and qualitative methods (mixed-method) and supplements the sample data with information gained from in-depth interviews and focus group discussions with relevant departments at the Directorate General of Taxes of the Republic of Indonesia as well as various experts in their fields, thereby strengthening the justification of the research results. The results show that taxpayers’ planned behavior has no direct effect on tax compliance, though it does mediate the intention to pay taxes. Taxpayers’ planned behavior thus affects tax compliance via the intention to pay taxes. Thus it is recommended that the government fosters taxpayers' intention to pay taxes through socialization, education, and continuous law enforcement to create a sense of justice in the community.