The Influence of Taxpayer Awareness, Tax Service Quality, and Tax Sanctions on Taxpayer Compliance Level with Taxpayer Financial Condition as a Moderating Variable

Abstract

This study aims to analyze the factors influencing individual taxpayer compliance in the Pratama Tax Office of Gianyar. The analyzed factors encompass taxpayer awareness, tax service quality, tax sanctions, financial condition, and the moderating influence of financial condition on the relationship between these factors and taxpayer compliance. The analysis is conducted using the Partial Least Square (PLS) method. Data were collected from 340 respondents who are individual taxpayers in the Pratama Tax Office of Gianyar. The analysis results indicate that the factors of taxpayer awareness and tax service quality have a positive and significant impact on taxpayer compliance. However, the tax sanctions factor does not have a significant influence on taxpayer compliance. Furthermore, financial condition moderates the influence of taxpayer awareness and tax service quality on taxpayer compliance. This research holds significant implications for the Pratama Tax Office of Gianyar in enhancing taxpayer compliance. The research findings demonstrate that the variables of taxpayer awareness and tax service quality exert a positive and significant influence on taxpayer compliance. This suggests that taxpayers with a higher awareness of tax obligations and who experience good tax services tend to be more compliant in fulfilling their tax obligations. These findings align with prior research indicating a positive relationship between taxpayer awareness, tax service quality, and tax compliance.