The Influencing Factors on Taxpayer Compliance: A Conceptual Approach

Khoirul Aswar

doi:10.22610/imbr.v11i4(i).2987

Abstract

Starting from the assumption that the problem of taxpayer compliance is important issues throughout the world, both in developed countries or in developing countries because if the taxpayer does not comply, it will cause the desire to do so acts of avoidance, evasion and tax neglect. this research seeks to find out to what extent taxpayers registered with SAMSAT Bekasi City fulfill Motorized vehicle tax liability. Drawing from institutional theory, this study has six objectives: (i) to find out the application of understanding of regulations taxation of taxpayer compliance, (ii) to determine the application of sanctions tax on taxpayer compliance, (iii) to determine the application of the tax rate to taxpayer compliance, (iv) to determine the effect of the application of preferences risks to taxpayer compliance. Therefore, this research contributes to the development of science knowledge and is expected to apply the theory that has been obtained specifically regarding the influence of understanding of tax regulations, tax sanctions and the tax rate for taxpayer compliance, which is moderated by risk preferences.

Highlights

Tax is compulsory contributions paid by the people to a country which useful for the benefit of government and society because tax is state revenue that will be used for the construction of public facilities
The conceptual paper in this study to investigate about factors which affects taxpayer compliance, especially in SAMSAT, Bekasi City this matter is important because taxes are useful state income to finance state expenditure, build public facilities, as well as for sustainability development
This research begins with the problem of taxpayer compliance in Indonesia which is still low and requires improvements to taxpayer compliance

Summary

Introduction

Tax is compulsory contributions paid by the people to a country which useful for the benefit of government and society because tax is state revenue that will be used for the construction of public facilities. State revenue in 2018 amounted to Rp1,942.3 trillion or 102.5% with the tax ratio reaches 11.5% of the increased Gross Domestic Product (GDP) by 0.8% from 2017 (Kemen, 2019). To be equal to developing countries, Indonesia needs to have a tax ratio of 20% of GDP. To achieve this target the government seeks to reform taxation in various ways, one of which is building tax compliance and awareness.

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Conclusion