THE INFLUENCE OF TAX EDUCATION IN HIGHER EDUCATION ON TAX KNOWLEDGE AND ITS EFFECT ON PERSONAL TAX COMPLIANCE

Abstract

Introduction: This study has 3 (three) objectives. First, to analyze whether tax education in higher education influences individual tax compliance through increased tax knowledge. Second, to explore the implementation of tax education in universities. Third, to identify cooperation carried out by universities and the Directorate General of Taxation in order to improve individual tax compliance. The research method used in this study is a mixed-method. Background Problems: In previous studies educational variables measured from the level of education of respondents (diploma, undergraduate, and postgraduate) not on the application of courses in tertiary institutions so that it does not reflect that respondents received tax education.Research Method: The approach used in this mixed-method is a convergent parallel. In a parallel convergent approach, the author collects each quantitative and qualitative data simultaneously, then the data are analyzed. Findings/Results: The results of a survey of 100 regular night class students in Politeknik Negeri Batam (Polibatam) who have fulfilled the requirements as taxpayers indicate that tax education has a significant effect on tax compliance. Then, the indirect effect of tax education through tax knowledge also significantly influences tax compliance. The results of quantitative research are also supported by the results of interviews with two students, two tax lecturers, and one employee of the Directorate General of Taxes. Conclusion: The results of this study are also in line with the social learning theory, where the environment influences cognition and behavior. From the theory, it can be concluded that tax education can increase tax knowledge and influence taxpayers’ compliance behavior.