Abstract
Tax amnesty is a type of remission program for taxpayers where they are freed from their tax obligations but, in exchange for the tax liability forgiveness, have to pay a redemption amount of money and disclose incomplete or unreported income in their previous tax periods, without having to face theadministrative penalty or tax prosecution. The short-term purpose of tax amnesty is to increase the country's income in large quantities in a short time. In the long-term, this program is intended to form a wider database so that the government can increase the number of taxpayers and level of tax compliance. This study aims to determine the differences in taxpayer compliance during the periods before (pre-test) and after (pro-test) the Indonesian Tax Amnesty program which ended on March 31, 2017. The population was taken from the total data of taxpayers registered in KPP Pratama Jepara. The sample for this research includes 100 respondents based on Slovin's formula calculation. The sampling was done using purposive sampling, and the type of data used was primary data collected via questionnaire distribution. The method used for the data analysis was a paired sample t-test. The results showed that the taxpayer compliance between the pretest and protest of tax amnesty program changed. This difference indicates an increase in taxpayer compliance, although still very low.
Highlights
1.1 Research BackgroundIn Indonesia, tax continues to top the state's largest source of income
The following is the summary of test results conducted to determine whether or not there is a difference of taxpayer compliance between before and after the tax amnesty program
The success of a tax amnesty program in improving taxpayer compliance and increasing tax revenues strongly depends on various factors, especially ongoing supervision (Andreoni, 1991), socialization and tax-awareness campaigns through adequate media coverage (Santoso & Setiawan, 2009)
Summary
In Indonesia, tax continues to top the state's largest source of income. Until 2016, the tax still accounted for more than 75% of the state's revenues. The ratio of tax revenue in Indonesia is currently in the range of 13.2% (2015) and 14.2% (2016). This ratio is still below the standards of ASEAN countries and the Organization on Economic Cooperation and Development. The ratios of tax revenues in other countries are Germany 36.7%, South Korea 24.3%, UK 32.9%, United States 25.4%, Mexico 19.7%, Japan 34.6%, and China 19.4%. The level of taxpayer compliance in Indonesia is quite apprehensive and continues to decline; in 2011 it reached 97.2% but fell to 91.6% in 2014, and again declined to only 82% in 2015
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