Tax Education Research Articles

Public Revenues and Educational Sector Productivity in Nigeria

This study examined the influence of public revenue on the productivity of the educational sector, focusing on how various tax policies and expenditures impact education’s contribution to the Gross Domestic Product (GDP), focusing on the role of Company Income Tax (CIT), Education Tax (EDT), Research and Development Investment (R&DI), and Capital Expenditure (CAPEX). Using annual data spanning from 1994 to 2023, the study employs econometric techniques, including the Autoregressive Distributed Lag (ARDL) model, to analyze the relationship between these variables and the education sector’s economic performance. The findings reveal that CIT and EDT positively influence the education sector’s contribution to GDP, suggesting that these forms of taxation play a crucial role in funding educational activities and stimulating economic growth within the sector. Additionally, R&DI and CAPEX exhibit mixed effects on the education sector, with lagged investments showing a more significant impact on economic performance over time. It was recommended that there is a need by policy makers and stake holders for continued efforts to create a conducive fiscal environment for businesses operating in the education sector, including favorable tax policies and incentives to stimulate investment and innovation. Keywords: Nigerian tax system, educational sector, Company Income Tax, Education Tax, Capital Expenditure.

Perceptions of functional tax advisors on artiicial intelligence-based applications in the context of performance improvement efforts

This study aims to analyze the influence of perceived usefulness and perceived ease of use of Artificial Intelligence (AI)-based applications on the willingness of functional tax instructors to use these AI-based applications. The data used in this study are primary data from questionnaire surveys distributed to functional tax extension officers from all Regional Offices of the Directorate General of Taxes from October to December 2023. In addition, this study also uses secondary data sourced from regulatory documents and other data related to the performance of tax extension officers from the Directorate General of Taxes. Data from 104 respondents were analyzed using multiple linear regression. This study concludes that the perceived usefulness and perceived ease of use of AI-based applications have a positive and significant effect on the willingness of Functional Tax Instructors to use AI-based applications. Functional extension workers need to continue to try to work side by side with technology so that work becomes faster and easier. With the help of AI technology, it is not impossible that the implementation of taxation counseling can be partially delegated to technological assistance so that tax education can be more massive and comprehensive.

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.

Influence of service, innovation, integrity on taxpayer compliance with education as a moderating variable at the UPT PPD/Samsat Karimun Office

Purpose: This study analyzes the influence of service, innovation, and integrity on taxpayer compliance with education as a moderating variable in the UPT PPD/Samsat Karimun office. Methodology: This study used a quantitative and descriptive approach with a population of all 2-Wheeled Motor Vehicle Taxpayers, namely 64,003 people, to obtain a sample of 156 respondents. This study used primary data with data sources, distributing Google form questionnaires, and going directly to the field. The data analysis technique used is the partial least squares (PLS) approach, which is a structural equation model (Structural Equation Modeling or SEM) based on components or variants, SmartPLS 4.0. Results: Based on the results of this study, it can be concluded that 1) service quality has a significant positive effect on taxpayer compliance, with an original sample value (O) of 0.305 and T-statistic of 2.235. 2) Innovation does not have a significant effect on taxpayer compliance, with an original sample value (O) of 0.252 and T-statistic of 0.870. 3) Integrity has a significant positive effect on taxpayer compliance, with an original sample value (O) of 0.370 and T-statistic of 2.082. 4) Service does not have a significant effect on tax education, with an original sample (O) value of 0.043 and T-statistic of 0.197. 5) Innovation has a significant positive effect on tax education, with an original sample (O) value of 0.313 and T-statistic of 1.984. 6) Integrity does not have a significant effect on tax education, with an original sample (O) value of 0.529 and T-statistic of 1.916. 7) Service has a significant positive effect on taxpayer compliance through education, with an original sample (O) value of 0.308 and T-statistic of 2.091. 8) Innovation does not have a significant effect on taxpayer compliance through education, with an original sample (O) value of 0.059 and T-statistic of 0.367. 9) Integrity does not have a significant effect on taxpayer compliance through education, with an original sample (O) value of 0.100 and T-statistic of 0.510. 10) Education has a significant positive influence on taxpayer compliance, with an original sample value (O) of 0.419 and T-statistic of 1.976.

Tax knowledge in connection with tax compliance in Hungary

During the examination of tax education, a significant part of the professional literature defines taxpayers as a homogeneous group, however, among others, the level of educational attainment and the digital skills of taxpayers are also important. This research investigates the role of knowledge in connection with tax compliance. The article is based on the statements from the professional literature and analysis of secondary data from national and international authorities and institutions. It also includes some comparisons of the components of the COM-B model on the data of nine European countries and sets up a model of tax behaviour based on Hungarian conditions. According to the classification based on the comparison, the performance of Hungary is at the lowest level among nine examined countries. Considering the complexity of the tax system, the knowledge of taxpayers is incomplete in Hungary. A developed version of the COM-B model points out that there is a close connection between capability and opportunity as well and these components can reinforce each other. With the adequate motivation and literacy as well as the knowledge of procedures can facilitate tax compliance. It can be concluded that successful tax education recognises and targets various groups of taxpayers. The Hungarian tax authorities treat taxpayers as a homogeneous group, however, there are slight developments by using several communication channels. In the current situation, the most important is to find the forms and levels of tax education to make the taxpayer able to comply.

Effect of Social Norms on Turnover Tax Collection among Micro and Small Enterprises in Meru Town, Kenya

The turnover tax has achieved a significantly low level of tax compliance since its introduction. This research examines social norms' impact on turnover tax collection among Micro and Small Enterprises (MSEs) in Meru Town, Kenya. This study used the Theory of Planned Behavior (TPB) to evaluate the influence of social norms on tax compliance. An Analysis of 367 Micro and Small Enterprises (MSEs) revealed a statistically significant positive correlation between social norms and tax compliance (β = 0.149, p = 0.007). The report proposed promoting robust tax compliance standards and improving tax education programs via seminars and advertising.

Analysis of research trends on tax morale in indexed journals in Indonesia

This study aims to analyze the research trends on tax morale in taxation journals indexed in Indonesia from 2019 to 2024. The method used is a systematic literature review by collecting data from various journals accredited by the Science and Technology Index (SINTA). The results show a significant increase in the number of publications discussing tax morale, especially in 2020, influenced by the COVID-19 pandemic. Factors such as trust in the government, social norms, and strict sanctions were found to have a positive impact on tax morale and tax compliance. The study also found that tax morale can be an effective tool for improving tax compliance through a holistic approach, including tax education, tax audits, sanctions, and incentives. This study provides important contributions to the taxation literature by presenting an in-depth analysis of tax morale research trends and their implications for tax policy in Indonesia. These findings are expected to help policymakers design more effective and sustainable taxation strategies.

Financial and Tax Literacy: A Child’s Early Exposure to Financial Concepts during the Educational Process

Aims: The viability of states today is largely based on the collection of tax revenues, which are considered as necessary for them to carry out their specific functions. Thus, the aim of this text is to discuss the development of citizens' tax culture, not as an isolated economic phenomenon but, as a phenomenon directly linked to their general financial literacy. Because it is the writer's belief that simply complying with the mandate to fulfill the tax obligation is not enough for the citizen to understand his contribution to the finances of his country, or, better, to appreciate this contribution in the context of understanding the ways in which the world moves financially. Methodology: It is a big question on how financially educated the modern man is and to what extent this financial education, his literacy or financial literacy, includes the concept of tax in its content to a sufficient extent to awaken consciences. In this text, the focus is on the exact age / educational stage at which this path to financial and tax literacy can begin, so that it can be integrated in a systematic way into the formal educational process. In order to draw conclusions about the appropriate stage for initiating financial awareness, the trends in the global financial literacy landscape were explored. This analysis aims to determine when it is considered appropriate to teach children financial concepts and how financial literacy is linked to making appropriate financial decisions and tax awareness at different age stages. An effort was carried out to evaluate the current financial and tax knowledge and behavior of Greeks. The research was exclusively bibliographic, i.e., a meta-analysis based on previous qualitative and quantitative studies. Results: Concerning the introduction of systematic financial and tax education for adolescents in schools, the studies accessed suggest that the age range of 12-14 marks a significant milestone for young people to begin delving into the more intricate concepts of the modern economy. Tax awareness among adolescents could arguably be attainable from around age 11 or 12, as they start demonstrating financial comprehension comparable to that of adults. Discussion: The findings of this research showed that the level of financial literacy in Greece depends on demographics, such as the geographical location and the gender of young people. Other factors are also important, but removing geographical and gender restrictions, combined with the provision of training programs already in the upper grades of Primary School, can improve financial awareness and develop the tax culture of citizens. This development requires the implementation of subjects in the curriculum, the training of the teachers so that they are able to teach children even 11 or 12 years old, the distinction of the concept of ethics from tax ethics and its teaching at an earlier age stage, and the drawing from international educational practices, i.e. leveraging successful financial literacy programs worldwide in order to obtain valuable insights for designing effective youth training initiatives.

The Effect Of Understanding Tax Digitalization, Digital Literacy On Tax Awereness

Taxpayer awareness involves understanding, accepting, and complying with tax regulations while demonstrating a willingness to fulfill tax obligations. This research aims to examine the impact of digital literacy on tax education among residents of West Bandung. Using the Slovin formula, 100 respondents were selected through probability sampling with a random technique. Data analysis was carried out using partial least squares and descriptive statistical methods. The findings of the study reveal that digital literacy and the digitalization of tax processes significantly and positively influence taxpayer awareness in the West Bandung area. These results highlight the importance of integrating digital tools into tax education programs, as they enhance taxpayers' knowledge and compliance with tax regulations. This research underscores how improved digital literacy can lead to a better tax compliance, providing valuable insights for policymakers. It suggests that by embracing digitalization, local communities can foster greater awareness and understanding of their tax responsibilities.

Understanding Tax Compliance: The Interplay between Tax Morale, Tax Rates, and Mediating Intentions

Small, and Medium Enterprises(SMEs) play a crucial role in the national economy. The stability of the economy can be maintained through the tax compliance, which contributes significantly to economic stability. This study aims to examine the impact of tax morale and tax rates on tax compliance. Additionally, it investigates the role of taxpayer intention as a mediator between tax morale and tax rates on tax compliance. The research involved 100 SMEs respondents in the DKI Jakarta area and employed quantitative analysis using Smart-PLS as the analytical tool. The results show that tax morale significantly influences both tax intention and tax compliance. However, tax rates do not have a significant impact on tax intention or tax compliance. The role of intention as a mediating variable partially mediates the effect of tax morale on tax compliance, while intention does not mediate the effect of tax rates on tax compliance. This study contributes additional literature on tax compliance and provides practical insights for tax authorities, emphasizing the need to enhance tax morale through effective tax education to motivate taxpayers to fulfill their tax obligations.

Pengaruh pengetahuan perpajakan, ketegasan sanksi perpajakan dan kesadaran wajib pajak terhadap kepatuhan wajib pajak pada UMKM di Kabupaten Kepulauan Sangihe

The objective of this research is to determine the influence of tax knowledge, strictness of tax sanctions, and taxpayer awareness on taxpayer compliance among MSMEs in Sangihe Islands Regency. This research employs a quantitative methodology with a descriptive approach. A questionnaire was distributed to 30 respondents from MSME actors to collect the data. The data was analysed using validity, reliability and hypothesis testing with the multiple linear regression method. The results of the research clearly show that tax knowledge and the strictness of tax sanctions have a positive and significant influence on taxpayer compliance, while taxpayer awareness does not. This research makes a significant contribution to the development of tax literature and provides clear recommendations for tax authorities to improve tax education and awareness strategies to increase taxpayer compliance in the MSME sector. The results of this research can help increase state revenues through better taxpayer compliance.

Analisis pengetahuan perpajakan dan kepatuhan wajib pajak UMKM Kafe di Kecamatan Sario

One of the taxpayers who make a major contribution in the field of taxation is Micro, Small and Medium Enterprises (UMKM). Cafe-based UMKM in Manado City have increased every year, especially in Sario District. However, in general, the growth of UMKM is not accompanied by the development of their compliance and knowledge regarding taxes. The objectives of this study are first to analyze the compliance of UMKM cafe income taxpayers in Sario District, and second to determine the knowledge of UMKM cafe taxpayers in Sario District regarding general provisions and procedures for paying taxes. The research method used is descriptive qualitative. The informants in this study were 5 UMKM cafe business owners in Sario District, Manado City. Data collection was carried out through interviews, observations and documentation. The results of this study show two points in general. First, the compliance of UMKM cafe taxpayers in Sario District is good, where business owners already understand and carry out the basics of income tax compliance, but still need to be improved. Second, the knowledge of UMKM cafe taxpayers in Sario District varies, but is still lacking where their knowledge is limited in terms of tax procedures. This is thought to be due to the lack of socialization from the government to UMKM taxpayers. The results of the analysis revealed that business owners still find it difficult to understand tax education information, and more intensive socialization is needed from the government.

Non-Oil Revenue and the Impact on the Economic Development of Nigeria

Nigeria as one of the major oil-producing countries in the world has been diversifying into more non-oil revenue while more attention is paid to tax revenue as it has the potential of taking the country to the Promised Land. As a result, the study sought to examine Non-Oil Revenue and its impact on the Economic Development of Nigeria, leveraging on tax revenue for the period 1994–2023. The objectives of the study examined the effect of corporate income tax, capital gain tax, value-added tax, customs and excise duties on economic growth. Tertiary Education Tax, Stamp duty, and Other Levies were used as controlled variables. Data were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and Federal Inland Revenue (FIRS) Statistical Reports. ARDL Regression Analysis was applied to test the hypotheses. The findings revealed that the coefficients of variation for the lag values showed that the RGDP was positively impacted by TDT and CED, while negatively impacted by CIT, CGT, VAT, and SD. The ARDL model's R2 and Adjusted R2 statistics together explained almost 69% of the variation in RGDP, according to the adjusted R2 of 0.518719. This implies that a significant portion of volatility is still unaccounted for despite the model's poor predictive power. The study concluded that the aggregate tax revenue does not show the hope of taking the country to the promised land, as only two (CED and TDT) showed a positive relationship with the economic growth of the country. Thus, it recommended that the Nigerian government need to pay more attention to tax income since it can promote the necessary growth in the nation.

Influence of Tax Socialization, Services, and Trust on Compliance via Tax Knowledge

Taxpayer compliance is crucial for effective tax administration and national development. This study aims to evaluate the direct and indirect effects of tax socialization, tax services, and trust in government on taxpayer compliance, with tax knowledge serving as a mediating variable, in Jombang Subdistrict, Jember Regency. Utilizing a quantitative research approach, data were collected from a sample of 376 respondents out of a total of 6,302 taxpayers, determined using the Slovin formula with a 5% margin of error. Structural equation modeling was employed to analyze the relationships among the variables. The results indicate that tax socialization, tax services, and trust in government significantly and positively impact both tax knowledge and taxpayer compliance. Tax knowledge was found to mediate these relationships, enhancing taxpayer compliance. These findings highlight the need for effective tax education programs, high-quality tax services, and efforts to build trust in government to improve taxpayer compliance. Future research should explore the applicability of these findings in other regional contexts and investigate additional mediating factors. Implementing tailored tax education initiatives and improved service delivery models could significantly enhance compliance rates and support broader economic and social goals.

Tax Knowledge Analysis of Millennials and Generation Z for Sustainability Development in Indonesia

Sustainable development is increasingly recognized as essential for addressing global challenges, including economic inequality and environmental degradation. As younger generations come of age, their knowledge and attitudes towards sustainability become crucial in shaping future policies and practices. In Indonesia, the millennial and Generation Z cohorts represent a significant portion of the population, and their understanding of tax knowledge and its implications for sustainability development has not been extensively studied. Tax policies are pivotal in funding sustainable initiatives, yet their effectiveness largely depends on public comprehension and engagement. Despite the critical role of taxation in financing sustainability, there is limited research on the tax knowledge of Millennials and Generation Z in Indonesia, particularly in how this knowledge influences their views on sustainable development. This study aims to analyze the level of tax knowledge among Millennials and Generation Z in Indonesia and assess how this knowledge impacts their perspectives on sustainability development. The goal is to identify gaps in tax education and its correlation with sustainable practices. The analysis reveals varying levels of tax knowledge within these generational groups, with notable discrepancies affecting their understanding of how tax policies contribute to sustainability goals. Findings indicate that while both cohorts exhibit some awareness, there are significant gaps that hinder their effective participation in sustainability efforts. This research introduces a novel approach by linking tax knowledge directly to sustainability attitudes among Indonesian Millennials and Generation Z, offering new insights into the intersection of taxation and environmental stewardship. The study underscores the need for enhanced tax education tailored to younger generations to bridge knowledge gaps and foster greater engagement in sustainability initiatives. Policy recommendations include integrating comprehensive tax education into curricula and public awareness campaigns to better align tax knowledge with sustainable development objectives.

Edukasi Pajak Pada Usaha Angkringan dan Warkop di Kecamatan Cikarang Pusat

Cikarang Pusat sub-district is one of the areas with economic growth driven by the presence of small and medium enterprises, including Angkringan and Warkop businesses. However, business actors' understanding of tax obligations is still shallow. This activity aims to provide tax education to partners to increase their tax awareness and compliance. The method used includes an initial survey to identify the level of understanding and educational needs, and implementation is carried out through direct assistance in the field. The results of the activity showed a significant increase in business owners' awareness and understanding of taxation knowledge after participating in the education programme. Before the programme, partners had an average knowledge of 45% regarding taxation, while after the programme, this figure increased to 85%. Continued education and support from the government and related organisations are needed to ensure the sustainability and positive impact of this programme.

Analisis Kualitas Pelayanan, Pengetahuan Dan Pemahaman Wajib Pajak Yang Mempengaruhi Tingkat Kepatuhan Wajib Pajak

This study aims to analyze the factors influencing the compliance of motorcycle taxpayers in Surabaya. Taxpayer compliance is crucial for increasing local tax revenue, which contributes to regional development. The study employs a qualitative method with a survey approach, where data are collected through questionnaires distributed to motorcycle owners in Surabaya. The independent variables analyzed include tax knowledge, taxpayer awareness, perceptions of tax services, penalties and fines, and trust in the government. The data analysis is conducted using multiple linear regression to determine the effect of each variable on taxpayer compliance levels. The results indicate that tax knowledge, taxpayer awareness, and perceptions of tax services have a significant positive impact on taxpayer compliance. These findings suggest that to improve taxpayer compliance, the government should focus on enhancing tax education, improving the quality of tax services, and building public trust in the tax system

Moderating effect of taxpayer perception on the relationship between electronic taxpayer education and turnover tax compliance among SMEs in Eldoret town, Uasin Gishu County

Taxpayer education has not best added extraordinary impact on big Small and Medium Enterprises (SMEs) marketplace performances but has also advanced well timed and coherent turnover tax compliance. Previous research has indicated that the turnover tax compliance among the SMEs have remained low. That is attributed to lack of tax compliance by SMEs via tax evasion, moving or briefly shutting down businesses. The study sought to assess the impact of electronic taxpayer education on turnover tax compliance amongst small and medium enterprises in Eldoret Town, Uasin Gishu County. The study was supported via monetary deterrence theory. Explanatory studies design was used focused on 68712 registered small and medium enterprises inside Eldoret town. Systematic sampling changed into used to pick out a sample of 397 SMEs. Questionnaires were used as the main facts series tool. Statistical Program for social sciences software was used to investigate quantitative facts both descriptively and inferentially. Findings from the study indicated that electronic taxpayer education had positive and significant effect on TOTC (Turnover Tax Compliance) of SMEs in Eldoret town (β1 = 0.600, p = 0.000<0.05). With a positive and significant effect of (β4=0.422, p=0.003<0.05), taxpayer perception moderates turnover tax compliance of SMEs in Eldoret town. The study concludes that electronic taxpayer education has a significant effect turnover tax compliance of SMEs in Eldoret town. The study therefore recommends that policy makers should focus on providing tax education programs for SMEs. This is to address the specific needs and challenges faced by SMEs in complying with tax regulations.

Trust in government, tax digitalization and tax education influence tax compliance with experience as a moderation

This study aims to examine the effect of trust in the government, tax digitization, and tax education on tax compliance with experience as a moderating variable. This study is an associative quantitative research using primary data in the form of a questionnaire. The population in this study is individual taxpayers registered at KPP Pratama Cilacap by giving several statements or questions to respondend totaling 97,483 people and a sample of 398 people. This research uses purposive sampling based on Slovin theory. The data analysis technique used in this study is the PLS-SEM model. This study uses descriptive statistical tests, measurement evaluation models, structural evaluation models and goodness-of-fit evaluation models. This study concludes that trust in government, tax digitalization, tax education and experience give positive impact to tax compliance. Experience cannot moderate the impact of trust in government to tax compliance. Experience weakened the impact of tax digitalization to tax compliance. Experience can moderate the impact of tax education on tax compliance.

Should the Cash Receipt System (CRS) be Implemented to Optimize Taxes in the Indonesian MSME Sector?

Research Aims: This study aims to analyze the viability of applying a Cash Receipt System (CRS) concept in supervising tax revenue from the MSMEs sector to add the consideration for implementing CRS in Indonesia using the OECD (2015) framework. Design/methodology/approach: This study uses a descriptive qualitative approach in the form of a case study conducted at the Directorate General of Taxes (DGT). The study was carried out by analyzing literature analysis, analyzing taxation data on the MSMEs sector, and analyzing interview results. The data collection method consists of secondary data through literature analysis and primary data through interviews with respondents from the DGT, Regional Revenue Agency, taxpayers in the MSMEs sector, consultants, and related associations. Research Findings: Research shows that CRS policy does not fulfill some OECD (2015) principles, especially Neutrality, Efficiency, and Equity. This research emphasizes the importance of tax education and financial literacy in the MSME sector for Indonesia's sustainability of tax revenues. Theoretical Contribution/Originality: Suggested by the OECD (2017), the study contributes to the body of knowledge regarding the application of the fiscal device to counteract tax evasion in Indonesia. Keywords: Fiscal Device, Cash Receipt, Tax Evasion, MSME