Tax Compliance Model Based on Taxpayers Planned Behavior in Indonesia

Abstract

Taxes are the largest contributor to the state revenue in Indonesia, therefore tax compliance is required to meet the revenue target. This research aims to examine and analyze relates to the effect of the correlation between planned behavior of taxpayers and mediating intention to pay taxes on tax compliance in an effort to encourage the growth of state revenues. These research hypotheses are: 1) Taxpayers’ planned behavior has an effect to the tax compliance; 2) Taxpayers’ planned behavior has an effect to the intention to pay taxes; 3) Intention to pay taxes has an impact towards tax compliance and 4) Intention to pay taxes could mediate the influence of taxpayers’ planned behavior against the tax compliance. These research models are mixed method with quantitative approach which strengthened by concurrent triangulation design. This research used SEM-Lisrel as a data analysis method with total sample of 310 respondents who are individual taxpayers in Bekasi, Indonesia that have been reported to the 2021 Annual Tax Return. This research found that: 1) Taxpayers’ planned behavior can improve tax compliance; 2) Taxpayers’ planned behavior will boost the intention to pay taxes; 3) Intention to pay taxes can improve tax compliance; and 4) The intention of taxpayers could be able to mediate taxpayers’ planned behavior towards tax compliance. The implication of this research is that special regulations are needed which ruled the connection between the tax authorities and taxpayers as a harmonious professional bondage because both of them have an unequal interest and it is necessary to examine these taxpayers, both of corporate taxpayers and individual taxpayers in supporting the implementation of self-assessment system in Indonesia.