Taxpayer Compliance Behavior Research Articles

Taxpayer Compliance in SMEs Sector: A Theory of Planned Behavior

The low level of taxpayer compliance is assessed as one of the causes of not achieving the target of tax revenue in Indonesia. One of the efforts made by the government to optimize tax revenue is by requiring UMKM sector to fulfill the obligation of taxation. Based on the above, the researcher is interested to conduct research on taxpayer compliance of UMKM using the psychological approach that is Theory of Planned Behavior. This theory describes the effect of attitudes on behavior, subjective norms, and perceived behavioral control on taxpayer compliance intent and behavior. This research uses a survey method at formal UMKM in Bali Province. Methods of sampling using proportional random sampling. Data analysis using the Structural Equation Model (SEM). The results showed that attitudes toward behavior, subjective norms, and perceived behavioral control have an effect on one's intentions to comply with tax provisions. Nevertheless, perceived behavioral control variables have no direct effect on individual tax compliance behavior. The test results on the variable intention to comply with tax compliance behavior support Theory of Planned JEL Classification : H24 ; H26 ; M41 DOI: https://doi.org/10.26905/jkdp.v22i2.1561

A Perspective of Theory of Planned Behavior and Attribution Theory for PBB P2 Taxpayer Compliance in Probolinggo

This study aims to show that attitude to comply, subjective norms, and perceived behavioral control had affect the intent to obey. Furthermore, perceived behavioral control and intention to abide affect on PBB tax compliance refers to the Theory of Planned Behavior. This study also adds a variable: the sanctions, that refers to Attribution Theory which predicted to affect PBB taxpayer compliance behavior. The sample was PBB taxpayers who have tax object in Probolinggo. The results showed that the attitude to obey had positive influence on the intention to comply, subjective norms had negatively affected on the intention to obey and perceived behavioral control had positive influence on the intention to obey. Moreover, these results also prove empirically that the intention to obey and perceived behavioral control had positive effect on PBB tax compliance, while the sanctions have no effect on PBB tax compliance. In addition, the intention to obey have the effect of partial mediation on relationships perceived behavioral control and PBB taxpayer compliance.

KEPERCAYAAN TERHADAP OTORITAS PAJAK SEBAGAI PEMODERASI PENGARUH DETERRENCE FACTORS TERHADAP KEPATUHAN WAJIB PAJAK PRIBADI

This study examines the role of trust to moderate the relationship between deterrence factors and taxpayer compliance behavior. Their compalince on tax regulation is hypothesized to be determined by three factors i.e. tax audit, tax fine and trust in tax authorities. Economics-of-crime approach predicts that the higher probability of tax audit and tax fine will enhance tax compliance. According to slippery slope theory, the positive relation of tax compliance and its deterrence factors might be stronger if tax payer has a higher trust in legal and taxation system. The field experiment is designed by 2x2x2 between subjects. The participants comprise of 80 personal tax payers in Semarang City. Using ANOVA as statistical analysis, this reseach suggested that tax compliance is more likey to be effectively affected by trust in tax authorities rather than deterrence factor. However, according to univariate analysis, tax audit and tax fine are still important determinants of tax compliance.

PEMERIKSAAN PAJAK DAN SANKSI PAJAK TERHADAP KEPATUHAN WAJIB PAJAK BADAN PADA KPP KEPANJEN KABUPATEN MALANG

This study was conducted in 2015 on the territory of the Tax Office Primary Kepanjen region. The purpose of this study is to examine the effect of tax audits and tax penalties for mandatory compliance body. Method and data analysis which was used in this research was multiple linear regression analysis, the statistical test that consists of the calculation of validity, reliability, classical assumptions, regression, coefficient of determina-tion and hypothesis testing. The results indicates that the examination of the tax and tax penalties have significant impact on taxpayer compliance. Based on these results, audits and tax sanctions can improve taxpayer compliance behavior of the body. The results support Ebimobowei’s (2013), Duran’s (2009) and Nugroho’s (2006), but the results are not suitable with Winerungan’s (2012) and Prince’s (2014).

Improving Tax Administration's Services as a Factor of Tax Compliance: The Case of Tax Audit

In this paper the experiences of taxpayers with the tax audits services as an important tool of tax authorities’ struggle against tax evasion are discussed. In the theoretical part of the paper the factors of tax compliance and the tax authorities’ measures in combating tax evasion are examined, the levels of tax rates and the compliance burden of European Union member states’ tax systems are compared. In the empirical part of the paper the experiences of Slovenian companies with tax audit services are analyzed. Better understanding of the drivers of taxpayer compliance behavior allows tax administration to identify and implement policy measures more effectively.

THE EFFECT OF TRUST TO GOVERNMENT, MORAL OBLIGATION AND COMPLIANCE COSTS ON TAXPAYERS COMPLIANCE BEHAVIOR

The aim of this study is to examine the direct and indirect effect of trust to government, costs of compliance and moral obligation on taxpayer compliance behavior. This study was conducted in East Java. The respondents of the study are business taxpayers. Fourty three taxpayers participated in this study. The findings of this study show that: (1) the direct effect trust to government on taxpayer compliance behavior is positive and significant (2) the indirect effect of trust to government on taxpayer compliance behavior through moral obligation is positive and significant (3) the indirect effect of trust to government on taxpayer compliance behavior through costs of compliance is insignificant. This study contribute not only to the research literature but also to help government to develop strategies toward improving compliance. Keywords: trust to government, moral obligation, compliance costs, compliance behavior.

The impact of tax professionals upon the compliance behavior of Australian individual taxpayers

The tax compliance literature indicates that limited research attention has been given to gauging the influence of tax professionals upon individual taxpayer compliance behaviour. This potential gap in the literature needs to be addressed given that tax professionals not only act as intermediaries between the Australian Taxation Office (ATO) and the majority of individual taxpayers but they can directly influence taxpayers’ ethical behaviour and the level of compliance.This empirical study explored whether or not a relationship exists between the advices provided by tax professionals and the compliance behaviour of Australian individual taxpayers (both evaders and non-evaders) taken from the taxpayers’ perspective. The findings revealed that there was a statistically significant relationship between the need for engaging tax professionals and compliance behaviour generally. There was also evidence of a statistically significant relationship between tax professionals’ aggressive advice and the compliance behaviour of non-evaders. It is envisaged that this study’s results will provide useful information for the Australian Taxation Office and have implications for tax policy development.

Public Governance Quality and Tax Compliance Behavior in Nigeria: The Moderating Role of Financial Condition and Risk Preference

To have better understanding of compliance behavior of individual taxpayers in developing countries especially Nigeria, this study is undertaken primarily to test relationship between taxpayers’ perception<br />about public governance quality and their compliance behavior as well as to<br />determine whether the relationship is moderated by financial condition and risk preference individually and jointly. This study involved a survey of individual taxpayers’ opinion, perception and behavior about public governance quality as well as tax compliance. The major finding of<br />this study is that public governance quality has significant positive relationship with tax compliance behavior. The study also indicates that risk preference has strong negative moderating effect on the relationship between public governance quality and tax compliance behavior. Administration of income tax in Nigeria is characterized by low compliance level and therefore, there is no doubt that improvement in public governance quality would contribute significantly in reawakening the culture of tax compliance among individual taxpayers in Nigeria. Empirically, nothing much is known in tax compliance literature about the influence of<br />public governance quality on tax compliance behavior of individual taxpayers as well as the moderating effect of financial condition and risk preference on tax compliance and its determinants. This study extended tax compliance model to incorporate public governance quality and moderating effects of financial condition and risk preference.<br /><br />

Bureaucratic Behavior in Strategic Environments: Politicians, Taxpayers, and the IRS

This article extends the empirical literature on bureaucratic behavior by modeling the strategic interactions between an enforcement agency, its clients, and its political principals. Specifically, the study focuses on the joint analysis of IRS enforcement decisions and taxpayer compliance behavior in order to fully explore the extent of political controls over the agency. The results suggest that there is a very strong reciprocal relationship between IRS audit levels and taxpayer compliance levels across states and over time and that taxpayer compliance behavior is also influenced by partisan changes in national politics.

The Impact of Multiple Component Reporting on Tax Compliance and Audit Strategies

Prior studies of the strategic interaction between taxpayers and the tax authority have focused on reported net taxable income and on audit policies designed to discover potential misstatement of that single item. This paper extends the literature by modeling taxpayer compliance behavior and tax authority audit strategies within the context of a multidimensional report of taxable income. Specifically, the study analyzes the impact of component reporting requirements on taxpayer incentives to misstate their tax liability. It also allows the tax authority to tailor its audit policy to consider all tax return information. In particular, the model permits the tax authority to audit return components sequentially: the investigation of a second component is conditional on the results of the first component's audit. The study finds that partitioning taxable income into a multi-component report reduces overall tax evasion and increases tax authority net revenue collections relative to a singlereport model of net taxable income. However, the impact on predicted evasion is not uniform across taxpayers. While some taxpayers reduce evasion, others with multiple opportunities to evade are more likely to do so when faced with multi-component reporting requirements.