Services Tax Research Articles

The influence of tax service quality and tax socialization on individual taxpayer compliance in the regional tax office of the Riau Islands

This research investigates how taxpayer compliance at the Riau Islands Regional Tax Office is affected by two factors: the quality of tax services and tax socialization efforts. The researchers surveyed 116 individual taxpayers and analyzed their responses using regression analysis. The findings revealed that both factors positively influenced compliance levels. Specifically, each unit improvement in tax service quality led to a 0.227 unit increase in compliance, while each unit increase in tax socialization resulted in a 0.479 unit rise in compliance. Together, these two factors account for 34.9% of the variations in taxpayer compliance behavior. Based on these results, the study recommends enhancing both service quality and socialization activities to boost tax compliance in the region.

PENGARUH MOTIVASI WAJIB PAJAK, EDUKASI PAJAK, DAN SIFAT MACHIAVELLIAN TERHADAP KEPATUHAN WAJIB PAJAK DENGAN PREFERENSI RISIKO SEBAGAI VARIABEL MODERASI

This research aims to determine the influence of taxpayer motivation, tax education, and Machiavellian nature on taxpayer compliance with risk preferences as a moderating variable in the service area of the West Ilir Pratama Tax Service Office, Palembang City. The sample used was simple random sampling and could only be used as many as 114 questionnaires from 400 respondents. The data used is primary data. The data collection technique was carried out by distributing questionnaires. The results of this research show that taxpayer motivation, tax education, and Machiavellian traits jointly influence taxpayer compliance. Partially, taxpayer motivation and Machiavellian nature influence taxpayer compliance, while tax education has no influence on taxpayer compliance. MRA hypothesis testing shows that risk preference results are unable to moderate the influence of taxpayer motivation on taxpayer compliance, the influence of tax education on taxpayer compliance, and the influence of Machiavellian traits on taxpayer compliance. Risk preference is only a moderator predictor in the relationship models formed.

Economic damage from natural hazards and internal migration in the United States

AbstractIn this paper, we analyze the impact of natural hazards on internal migration in the United States (US). The analysis uses Internal Revenue Service (IRS) tax records and analyzes different versions of a gravity model to assess the impact of economic damage caused by natural hazards on migration flows between counties. We find that natural hazards in the origin county are associated to larger outflows, with hurricanes exhibiting the most substantial impact on migration, followed by floodings and severe storms. These results emphasize the need for migration research that distinguishes between various types of hazards. Furthermore, we extend the gravity model to investigate whether people tend to relocate to relatively nearby areas in response to natural hazards, an established phenomenon in existing literature. For floods and severe storms, the analysis demonstrates that migration flows to nearby counties are comparatively larger than to distant counties. These findings may be concerning, as it implies that individuals could still be at a high risk of experiencing future disasters. Additionally, we provide several robustness checks to investigate to what extent our results are driven by extreme events in the dataset.

The impact of tax deduction on inequality in Russia

The article examines the impact of tax deductions for education and healthcare on income inequality in Russia. The objective of the study is to quantify the redistributive effects of this fiscal measure. Additionally, the paper assesses the potential effects of proposed reforms to tax deductions, with a particular focus on changes proposed in the President’s Address to the Federal Assembly in February 2023 and implemented in 2024. The study uses data from the Federal Tax Service and the Russia Longitudinal Monitoring survey of the National Research University Higher School of Economics (RLMS-HSE), in conjunction with the microsimulation model RUSMOD, which enables the estimation of the short-term redistributive effects of changes in taxes and transfers. The study demonstrated that the current tax deductions for education and health care have a marginal impact on income inequality. Conversely, if tax deductions are reformed in a manner that increases their limits and take-up, this may result in an increase in income inequality.

Pengaruh Self Assesment System, Sosialisasi Perpajakan dan Sanksi Perpajakan Terhadap Kepatuhan Wajib Pajak Orang Pribadi

The tax sector has a dominant role in the economy in Indonesia. The method applied in this research is a quantitative approach (Positivism). This research uses primary data obtained through questionnaires. This study uses the Slovin formula with a margin error rate of 10%, the population in this study was 75,569 and the sample obtained was 100 respondents. This questionnaire was distributed to respondents collected from the Batam Pratama Selatan Tax Service Office (KPP) during the period 2019 to 2023. Self Assessment The system has a significant effect on individual taxpayer compliance at KPP Pratama South Batam, so H1 accepted. Tax socialization has a significant effect on individual taxpayer compliance at KPP Pratama South Batam, so H2 is accepted. Tax sanctions have a significant effect on individual taxpayer compliance at KPP Pratama South Batam, so H3 is accepted. The Self Assessment System, Tax Socialization, Tax Sanctions simultaneously have a significant effect on individual taxpayer compliance at KPP Pratama South Batam, so H4 is accepted.

Analisis Penerapan Pajak Pertambahan Nilai pada PT. Quantum Mandiri International

The research was conducted using a mixed method between quantitative and qualitative to determine the relationship between inflation and Value Added Tax (VAT). In addition, this research was also conducted to find out how the application of VAT in terms of calculation, payment and reporting stated in the company's Periodic Notification Letter (PNL). This is done to avoid tax sanctions, one of which is the receipt of a Tax Collection Letter (TCL). The independent variable uses inflation and the dependent variable uses VAT. This study uses data on inflation and VAT reported as much as 36 data with the period 2021-2023. Simple linear regression analysis is used in the data processing method and processed using statistical data processing tools. The results of existing data processing show that inflation has a positive impact on VAT. In the February 2021 and March 2021 VAT Periodic Tax Returns there are still corrections caused by errors in making Tax Invoices (TI), resulting in delays in payment and reporting of VAT NPL. Due to this delay, it resulted in the receipt of STP from the Tax Service Office (TSO) and a response has been made by the company to the TCL that has been received. For the April 2021 to December 2023 VAT NPL, the company has paid and reported VAT so that no TCL has been received from the TSO.

Operational and organizational variation in determinants of policy implementation success: the case of policies that earmark taxes for behavioral health services

BackgroundResearch on determinants of health policy implementation is limited, and conceptualizations of evidence and implementation success are evolving in the field. This study aimed to identify determinants of perceived policy implementation success and assess whether these determinants vary according to: (1) how policy implementation success is operationally defined [i.e., broadly vs. narrowly related to evidence-based practice (EBP) reach] and (2) the role of a person’s organization in policy implementation. The study focuses on policies that earmark taxes for behavioral health services.MethodsWeb-based surveys of professionals involved with earmarked tax policy implementation were conducted between 2022 and 2023 (N = 272). The primary dependent variable was a 9-item score that broadly assessed perceptions of the tax policy positively impacting multiple dimensions of outcomes. The secondary dependent variable was a single item that narrowly assessed perceptions of the tax policy increasing EBP reach. Independent variables were scores mapped to determinants in the Exploration, Preparation, Implementation, and Sustainment (EPIS) framework. Multiple linear regression estimated associations between measures of determinants and policy implementation success.ResultsPerceptions of tax attributes (innovation determinant), tax EBP implementation climate (inner-context determinant), and inter-agency collaboration in tax policy implementation (outer-context and bridging factor determinant) were significantly associated with perceptions of policy implementation success. However, the magnitude of associations varied according to how success was operationalized and by respondent organization type. For example, the magnitude of the association between tax attributes and implementation success was 42% smaller among respondents at direct service organizations than non-direct service organizations when implementation success was operationalized broadly in terms of generating positive impacts (β = 0.37 vs. β = 0.64), and 61% smaller when success was operationalized narrowly in terms of EBP reach (β = 0.23 vs. β = 0.59). Conversely, when success was operationalized narrowly as EBP reach, the magnitude of the association between EBP implementation climate and implementation success was large and significant among respondents at direct service organizations while it was not significant among respondents from non-direct service organizations (β = 0.48 vs. β=-0.06).ConclusionDeterminants of perceived policy implementation success may vary according to how policy implementation success is defined and the role of a person’s organization in policy implementation. This has implications for implementation science and selecting policy implementation strategies.

The Influence of Taxpayer Awareness, Tax Sanctions, Tax Service Quality, and Tax Knowledge on The Individual Taxpayer Compliance

Taxpayers are increasing from year to year, but this is not balanced with decreasing taxpayer compliance. This study aims to examine and analyze the level of individual taxpayer compliance with construct determined by taxpayer awareness, tax sanctions, tax service quality, and tax knowledge. The data of study used primary data obtained from a questionnaire disseminated to respondents in the Gowa Regency of 79 respondents. The results of the study showed that taxpayer awareness has a significant influence on taxpayer compliance, tax sanction has a significant influence on taxpayer compliance, tax service quality has a significant influence on taxpayer compliance, and tax knowledge has a significant influence on taxpayer compliance. This indicates that taxpayer awareness, tax sanctions, tax service quality, and tax knowledge can increase individual taxpayer compliance

Pengaruh Kepatuhan Pajak, Kualitas Pelayanan Pajak dan Biaya Sanksi Kepatuhan Pajak terhadap Penerimaan Pajak Kendaraan Bermotor dengan Tax Amnesty sebagai Variabel Moderasi pada UPT Badan Pendapatan Daerah Wilayah Kabupaten Kupang

This research aims to determine the effect of tax compliance, tax service quality and tax compliance sanction costs on motor vehicle tax revenues with tax amnesty as a moderating variable at the Kupang Regency Regional Revenue Agency UPT. This research involved conducting a quantitative survey. The sample used as the main data source was 100 Kupang Regency taxpayers. Inferential statistical analysis is a type of data analysis method used in this research. The results of this research statistically found that taxpayer compliance does not have a significant influence on motor vehicle tax revenue. However, the quality of tax services and sanction fees have a positive and significant influence on motor vehicle tax revenues in the UPT activities of the Kupang Regency Regional Revenue Agency. Meanwhile, the tax amnesty variable as a moderating variable has an influence on motor vehicle tax revenues, but the tax amnesty variable is unable to moderate the influence of taxpayer compliance and compliance sanctions costs on motor vehicle tax revenues. The tax amnesty variable is only able to moderate the influence of service quality on motor vehicle tax revenues in the UPT activities of the Kupang Regency Regional Revenue Agency

Navigating the challenges of public transport and urban mobility in Thohoyandou, South Africa

Background: Transport systems are an essential feature of functional urban settlements. Yet, almost all of South Africa’s secondary cities and small towns lack a true public transportation system. Because of this, quasi-public, privately operated mini-bus taxis are the main form of transport for most urban residents. Thohoyandou, Limpopo, a town of over 70 000 people, is a typical South African town in this regard.Objectives: The purpose of this research was to understand passenger experiences of mini-bus taxis in Thohoyandou, Limpopo province, South Africa.Method: This study used semi-structured interviews to explore the mobility challenges faced by the residents of Thohoyandou.Results: This study revealed several negative aspects impacting passenger experiences. Passengers consistently reported concerns regarding driver’s behaviour that compromised safety and security. This included overloading of vehicles and disregard for traffic regulations. Passengers also highlighted the challenges posed by poor transport infrastructure and a lack of reliable service. Collectively, these factors contribute to limited mobility options, increased transportation costs and a reduced quality of life. Furthermore, the shortcomings of mini-bus taxi services disproportionately affect people with disability, who already face significant societal barriers, further marginalising them within the transportation system.Conclusion: The government should increase investment in transport infrastructure, the enforcement of traffic laws and better driver training. However, a strong government combined with much political will is required if passengers and safety are to be the main priorities of the mini-bus taxi industry.Contribution: This study highlights challenges faced by public transport users in Thohoyandou, where mini-bus taxis serve as the main mode of transport. The challenges experienced by transport users not only reduce their mobility but also contribute to marginalisation of vulnerable groups, especially people with disability.

Probability of Detection and Value Added Tax Compliance among Small and Medium Enterprises in Westlands Sub County, Nairobi, Kenya: Moderating Effect of Tax Service Quality

Purpose: Value-added tax compliance has remained a challenge, especially when it comes to SMEs operating in Kenya. The high level of informality of this sector provides an incentive for most of the SMEs to evade payment of VAT, a situation that has constrained the amount of tax revenues available to finance fiscal budget. This study aimed to determine the moderating role of tax service quality on the relationship between probability of detection and value added tax compliance among small and medium enterprises in Westlands Sub County, Nairobi, Kenya. Methodology: The study adopted an explanatory design targeting 751 SMEs operating in Westlands Sub- County, Nairobi, Kenya as registered by Nairobi City County. The sample frame was the list of SMEs in Westlands Sub- County that is available in Nairobi City County. The sample size was 261 owners of the said SMEs who were stratified into four categories based on the nature of undertaking of their business and a representative sample from each of these categories was drawn. Gathering of information was by use of a questionnaire. To analyze the collected information, descriptive statistics like means and standard deviations as well as multiple regression analysis was adopted. Results: Regression of coefficients showed that probability of detection had a positive and significant effect on VAT compliance of SMEs (β=0.358, p=0.000). The findings also revealed that tax service quality moderates the relationship between probability of detection and value added tax compliance among small and medium enterprises (β= 0.086, ρ<0.05). Conclusion: The study concluded that probability of detection had a positive and significant effect on VAT compliance of SMEs. In addition, the study concluded that tax service quality moderate the relationship between probability of detection, on value added tax compliance among small and medium enterprises in Westlands Sub County, Nairobi, Kenya. KRA should increase the rate probability of audit detection by coming up with new mechanisms of audit detection thus enhancing VAT compliance of VAT amongst the SMEs. The government should strive to provide SME owners in Westlands Sub County, Nairobi, with services that are of high standards for example at the tax stations as clearly stated in the corporate plan to reduce the need for spending costs to hire skilled persons such as tax consultants.

Identifying money laundering risk indicators: Evidence from Bulgaria

The study of the fight against money laundering in Bulgaria takes on a heightened significance due to the country's unique geopolitical and economic context. As a member of the European Union and a key regional player, Bulgaria assumes a pivotal role in preventing cross-border crimes, including money laundering. The present study aims to analyze how modern technologies can bolster this crucial role, facilitating monitoring and analysis processes to enhance the effectiveness of audit and tax inspections in the country. The research applied practical methods involving digital tools and technological solutions such as artificial intelligence and machine learning. These tools were used to identify risk patterns and anomalies in transaction data, demonstrating their real-world application and effectiveness. They enable fast and accurate analysis of large volumes of data, which is particularly important in the context of sophisticated money laundering schemes. The results of the study underscore the potential benefits of technological innovation in the field of financial audits. With the aid of digital technologies, supervisory authorities in Bulgaria stand to significantly enhance their ability to detect financial abuses, including money laundering and tax evasion. In conclusion, the study reiterates the pressing need for further integration of modern technological solutions in the practices of audit and tax services in Bulgaria. This integration is crucial to ensure the effectiveness of control mechanisms and the country's ability to respond to current and future challenges in the fight against crimes in the financial sphere, underscoring the urgency of this matter.

GST Impact: Perspectives from Registered Traders’ in District Kangra, Himachal Pradesh

This research paper evaluates traders' perceptions of the Goods and Services Tax (GST) and its impact on business operations in District Kangra, Himachal Pradesh. A structured questionnaire was utilized to conduct a comprehensive survey involving four hundred respondents. The focus was on key aspects such as tax simplification, interstate and intrastate trade, pricing strategies, profit margins, transparency in tax collection, and accounting processes. The findings reveal a generally positive perception of GST, particularly in terms of its role in simplifying taxation and enhancing trade efficiency. However, challenges remain, especially concerning compliance issues and fluctuations in profit margins. To improve trader experiences, the study recommends targeted training programs, streamlined compliance processes, and the establishment of effective feedback mechanisms. These insights contribute to a deeper understanding of the real-world impact of GST on business operations and highlight essential areas for future improvement, underscoring the need for continuous support in adapting to the evolving tax landscape.

Driving Individual Taxpayer Compliance: How Information Technology Elevates Tax Service Quality, Social Engagement and Education

This study investigates the factors influencing Individual Taxpayer Compliance in Indonesia, focusing on Tax Service Quality, Social Engagement and Education, and the moderating role of Information Technology. The findings reveal that Tax Service Quality does not significantly impact taxpayer compliance, suggesting that improvements in service quality alone may not suffice to enhance compliance levels. In contrast, Social Engagement and Education are significant factors that positively influence taxpayer compliance, indicating the effectiveness of educational initiatives and community involvement in fostering compliance behavior. Furthermore, information technology has been found to have no significant moderating effect on the relationship between tax service quality or social engagement, education, or taxpayer compliance. These results underscore the importance of prioritizing social engagement and educational strategies while recognizing that technology should be integrated as a complementary tool to improve compliance outcomes. A balanced approach combining these elements is essential for fostering a more compliant taxpayer environment in Indonesia.

ANALISIS PROSEDUR KELEBIHAN PEMBAYARAN PAJAK PERTAMBAHAN NILAI PADA KANTOR PELAYANAN PAJAK PRATAMA MEDAN BARAT

This study aims to determine the process of resolving value added tax (VAT) overpayments and find out the obstacles faced by taxable entrepreneurs in submitting value added tax overpayments at the West Medan Pratama Tax Service Office. The sample in this study is Value Added Tax Overpayment Data for 2019-2023. Data collection techniques use interview and documentation techniques. The analysis method used is descriptive. Based on the results of this study, it shows that there are still many taxpayers who apply but do not complete the documents according to the tax overpayment procedures requested by KPP Pratama Medan Barat, as well as the implementation of tax overpayment procedures by KPP Pratama Medan Barat in accordance with the procedures of the applicable laws and SOPs. The obstacles faced by the West Medan Pratama KPP are that in practice, starting from the examination until the approval of the application, the level is quite difficult and the administrative data is incomplete, as well as evidence that shows that there is an overpayment of tax, the address is incomplete and the taxpayer has difficulty contacted.

Enhancing Employee Performance: The Impact of Engagement, Job Rotation, Compensation, and Motivation

This research aims to determine the influence of employee engagement, transfers, compensation and motivation on employee performance. Apart from that, you can see the review from an Islamic perspective. The population of this study were employees of the Jakarta Cakung Primary Tax Service Office with a sample size of 89 respondents. The sampling technique uses a non-probability sampling method, with a saturated sampling technique through distributing questionnaires. The data analysis method uses the Partial Least Square Structural Equation Modeling (PLS-SEM) method. The model in this research provides a strong influence with a strong level of relevance in predicting the influence between variables with a large level of suitability. employee engagement has a positive and significant effect on employee performance. Furthermore, mutations have a positive and significant effect on employee performance. Compensation has a positive and significant effect on employee performance. Motivation has a positive and significant effect on employee performance. Managerial Implications Organizations should prioritize enhancing employee engagement through effective communication and involvement in decision-making processes to boost performance. Additionally, strategic employee mutations or transfers can be leveraged to match skills with job roles more effectively. Fair and competitive compensation packages are essential to motivate employees and enhance their commitment.

Better cigarette tax policies and higher tobacco excise tax revenues

BackgroundIn November 2021, the Tobacconomics team published the second edition of the Cigarette Tax Scorecard which evaluates cigarette taxation in each country based on four components—cigarette price, affordability change, tax...

Powers to Summon under Section 70 of Central Goods and Services Tax Act, 2017 - Whether They are Synonymous with Powers in Other Indirect Tax Statutes: An Analysis

Powers to Summon under Section 70 of Central Goods and Services Tax Act, 2017 - Whether They are Synonymous with Powers in Other Indirect Tax Statutes: An Analysis

Tax Service Quality, Trust in Government and Tax Compliance among Small and Medium Enterprises in North Rift Economic Bloc

Purpose- The study sought to establish the indirect effect of trust in government on the relationship between the tax service quality and tax compliance among SMEs in North Rift Economic Bloc, Kenya.Design/Methodology- Based on the social contract theory, this study has a positivist philosophy that is informed by an explanatory research design. The target population was 21,232 SMEs; the sample size used in this study consisted of 393 SME owners/managers selected through a stratified sampling technique. Data were collected using a self-administered questionnaire, and Cronbach's alpha with factor analysis was used to establish the instrument's reliability and validity. Descriptive and inferential statistics were employed to test the hypothesis, and hierarchical regression using the Hayes Process macro was performed.Findings-The study revealed that tax service quality (β =.541, p=.000<0.05) and trust in government (β =.375, p=.000<0.05) are significantly positively related to tax compliance. In addition, the tax service quality was found to have a significant effect on trust in government (β =.395, p =.000<0.05). In addition, the results showed that trust in government mediates the relationship between tax service quality and tax compliance (β =.1482, CI=.0981, .2015).Practical Implications- These findings underscore the need for governments to improve the quality tax services, as this may be able to help in gaining public trust which will ultimately increase SMEs compliance with taxes. There is scope for future research to incorporate mixed-method approaches in order to discover yet more factors affecting tax compliance.

Analysis Of Factors That Influence Individual Taxpayer Compliance In Jombang Regency

The purpose of this study is to analyze the various factors that influence individual taxpayer compliance individual taxpayers in Jombang Regency. Understanding of tax regulations, WPOP awareness, suitability of tax rates, use of tax applications, and service quality are some of the factors that this study examined their influence on individual taxpayers compliance in Jombang Regency, which is the subject of this study. All individual taxpayers registered with the Jombang Primary Tax Service Office are the population in this study. The sampling strategy used is a simple random sampling of each taxpayer with a taxpayer identification number (Nomor Pokok Wajib Pajak - NPWP). The test was conducted on 100 respondents obtained from calculating the Slovin formula in determining the research sample. This study uses Partial Least Squares (PLS) as a statistical testing tool. Based on the results of the study, understanding of tax regulations does not influence individual taxpayers compliance; individual taxpayer's awareness influences individual taxpayer's compliance; suitability of tax rates influences individual taxpayer compliance; use of tax applications does not influence individual taxpayers compliance; and service quality influences individual taxpayers compliance.