The Effect of Tax Sanctions on Taxpayer Compliance with Services as a Moderating Variable

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Taxes are one of the great sources of wealth for the states of Indonesia that are used for expenditure in order to transfer people. Some factors that influenced taxation are tax sanctions and services. This research is a quantitative study. The population is the research is the taxpayer body registered at KPP Pratama Surabaya Karangpilang. The data used are primary data with data collection techniques using questionnaires. The samples used in this study were about 98 taxpayers using sampling techniques incidental sampling. Analytical techniques used Partial Least Square (Smart PLS). The results of this study show that tax sanctions have a positive effect on the compliance of corporate taxpayers. The second result indicated that tax services by the KPP have a negative effect on the relationship between tax sanctions and taxpayers’ compliance. Based on these results, the implication for KPP is to enforce the tax sanction for corporate taxpayers to be more compliant in paying their taxes. However, tax services need to be identified and customized to the corporate taxpayer’s needs, so that tax services will have an impact on corporate compliance in paying taxes.