Tax Penalties Research Articles

Faktor-Faktor yang Memengaruhi Kepatuhan Wajib Pajak dalam Membayar Pajak Kendaraan Bermotor di Kota Denpasar

This study aims to obtain empirical evidence about the influence of taxpayer income levels, taxpayer awareness, service quality, and tax penalties on tax compliance in paying motor vehicle tax in Denpasar. The theory used is behavioral accounting theory as grand theory and attribution theory as supporting theory. The population is all active PKB taxpayers registered at the Joint Office of SAMSAT Denpasar City totaling 713,601. The research sample of 100 respondents was calculated based on the Slovin formula with the accidental sampling method. Data collection by questionnaire method and documentation technique. The data analysis technique is multiple linear regression analysis. The results showed the level of taxpayer income, taxpayer awareness, service quality and tax penalties had a positive effect on taxpayer compliance in paying motor vehicle tax in Denpasar.
 Keywords: Income Levels; Awareness; Service Quality; Tax Penalties; Motor Vehicle Taxpayer Compliance.

EFFECTIVENESS OF TAXPAYER EDUCATION ON TAX COMPLIANCE FOR SMALL AND MEDIUM ENTERPRISES IN KENYA: A STUDY OF SELECTED BUSINESS ENTERPRISES IN KITENGELA TOWN IN KAJIADO COUNTY

This research paper aim was to establish the effectiveness of taxpayer education on tax compliance for SMEs in Kitengela town. There are reasons why KRA never met its revenue targets and the revenue collected has never surpassed the target set aside by the commission. The non-compliance of tax by SMEs can be attributed to the tax gap that is available in every fiscal year. KRA conducts taxpayer education to all registered SMEs in an effort to improve the existing level of tax compliance. The only way KRA will meet their target revenue is when they include all SMEs in the generation of the revenue. The study was anchored on Theory of Reasoned Action and Fisher Tax Compliance Model while the study variables were PAYE form of tax, tax rates, tax compliance cost, tax penalties and fines. The target population of the study were 1400 SMEs with a sample that was random stratified chosen of 140 SMEs. The data was analyzed using descriptive statistics, inferential statistics and SSPS version 24.0. The inferential statistics was employed to establish the relations that exist between the study variables. Pearson correlation matrix was used for predicting and describing the variables in terms of directions and magnitude while regression analysis was conducted at a level of 5%. The data analysis tools will be SSPS and the use of inferential statistics. The study established that the effectiveness of taxpayer education on tax compliance and all the predictors as shown by beta coefficients: PAYE (? = 0.542); tax rates (? = 0.482) and tax penalties and fines (? = 0.632). However, the study established there is a positive but statistically insignificant relationship (? =0.06, p= 0.671>0.05) between tax compliance cost and tax payer education. The study concluded that tax rates, PAYE, tax penalties and fines contribute greatly to tax compliance and finally tax compliance cost have the most significant influence on tax compliance. The study recommends that KRA should have an office in every county that will address tax issues at county level and the services to be offered should include tax penalties, filing of tax returns, tax computation and tax differentiation.

Swallow Nest Tax Control in Cirebon Regency

This research investigates swallow nest tax controlling in Cirebon Regency. The swallow nest tax is tax on the activity of taking or exploiting swallow nest. Formulation of the problem in this study is based on the report issued by THE BPPD Cirebon Regency, which showed that there was tax disobedience or avoidance performed by the swallow nest taxpayers. There was also still lack of corrective action done by the government in deciding tax penalty for the tax breakers. It is assumed to happen due to the less optimized controlling process. Therefore, this research aimed at seeing how the controlling process of swallow nest tax in Cirebon Regency was conducted. The data collecting technique of the qualitative method was applied in this research by using the literature research, field research, and interviewing five informants. They were the Head of Control Sub-Department of THE BPPD of Cirebon Regency, the Head of Regional Tax 1 Department of THE BPPD of Cirebon Regency, the Head of Technical Implementation Unit (UPT) of THE BPPD of Cirebon Regency, the taxpayer, and the guard of swallow nest building. The research showed that the swallow nest tax collecting process in Cirebon Regency was not optimal at that time. It was because the performance had not met the determined target, the controlling process done had not been completely conducted based on the standard determined in the Regent’s Regulation (Perbup) No. 14 of 2012, and the commitment in deciding needs of corrective action was not strong enough.

‘Should I stay or should I go now?’: A qualitative study of why UK doctors retire

Health care delivery and education face critical potential shortages in the foreseeable future in terms of retaining doctors nearing the time of retirement - doctors who have experience-based knowledge to pass onto the next generation. Retirement decisions are driven by a combination of macro-related, job and individual factors. This is a constantly shifting space; findings from earlier studies do not always help us understand the retirement decisions of contemporary cohorts of doctors. To address these issues, and identify new knowledge to inform approaches to retaining expertise, we aimed to identify and explore what may keep an older doctor in the workforce ('stay') factors and ('go') factors that might prompt retirement. We invited doctors aged 50years or over from diverse areas of Scotland to participate in qualitative, semi-structured interviews. Initial analysis of interview transcripts was inductive. The embeddedness theory of Mitchell et al encompassing the dimensions of 'link,' 'fit' and 'sacrifice,' was used for subsequent theory-driven analysis. A total of 40 respondents participated. In terms of 'link,' retiring could feel like a loss when work links were positive, whereas the opposite was true when relationships were poor, or peers were retiring. Considering 'fit,' intrinsic job satisfaction was high but respondents had less confidence in their own abilities as they grew older. However, the data foregrounded the inverse of the notion of Mitchell et al's 'sacrifice'; for UK doctors, staying in work can involve sacrifice because of tax penalties, work intensity and arduous demands. Retirement stay and go factors seem enmeshed in the cultural, social and economic structures of health care organisations and countries. Systems-level interventions that address ultimate causes, such as sufficient staffing, supportive systems, non-punitive taxation regimes and good working conditions are likely to be most effective in encouraging doctors to continue to contribute their knowledge and skills to the benefit of patients and learners.

Financial knowledge overconfidence and early withdrawals from retirement accounts

AbstractEarly distributions from retirement accounts could endanger future retirement income security, and the U.S. has restrictions to discourage them, including possible tax penalties. On the other hand, tapping one's retirement assets may be rational when an individual encounters financial hardship. With the 2020 Coronavirus Aid, Relief, and Economic Security Act, early distribution from retirement accounts became an even more attractive option to individuals. In this study, we examined factors related to individuals' decision of taking hardship withdrawals and plan loans, focusing on financial knowledge and overconfidence in financial knowledge, using the 2018 National Financial Capability Study dataset. We found evidence that people may be making early withdrawals without understanding possible consequences. Objective financial knowledge was negatively related to hardship withdrawals and plan loans, but the subjective assessment of financial knowledge was positively related to hardship withdrawals. Respondents with financial knowledge overconfidence (high subjective and low objective knowledge) were more likely to take early withdrawals than those with other combinations of objective and subjective knowledge. We discuss implications for public policy and financial education and advice.

Pengaruh Kesadaran Wajib Pajak, Kualitas Pelayanan Fiskus, dan Sanksi Perpajakan Terhadap Kepatuhan Pelaporan Wajib Pajak

This research was conducted in connection with the ongoing tax payment period, namely March for Personal WP and April for Entities. The location of the study was conducted at KPP Pratama Seberang Ulu Palembang with a sample of 100 people taken based on the Slovin method. The independent variable in this study is the awareness of taxpayers, the quality of tax authorities, tax sanctions, while the dependent variable is taxpayer reporting compliance. The sample used is taxpayers who are registered at KPP Seberang Ulu Palembang. The results showed that the variable awareness of taxpayers and tax penalties had a significant positive effect on taxpayer compliance, and the variable Fiscus Services did not affect the compliance of taxpayers registered at the Seberang Ulu KPP. The results of this study are expected to provide input to improve service and satisfaction of taxpayers especially in the city of Palembang.

MEDICAL MARIJUANA, TAXATION, AND INTERNAL REVENUE CODE SECTION 280E

Congress enacted § 280E of the Internal Revenue Code in 1982 to punish businesses engaged in illegal drug trafficking, including marijuana. Section 280E denies all credits and deductions, including ordinary business expenses, from gross income of businesses illegally trafficking in a Schedule I or II controlled substance. This provision violates the principle that the tax code should foster a consistent treatment of income, regardless of source; and that the income tax is ill-used for punitive measures. Now that marijuana has been legalized in some form in at least 46 states for therapeutic purposes, this federal tax penalty transgresses principles of federalism. Recent scientific studies that have established the medical effectiveness of marijuana for certain conditions, further demonstrates that § 280E serves little legitimate purpose.

Effects of economic deterrence variables and royalty rates on petroleum profit tax compliance in Nigeria: an empirical analysis

PurposeThe oil and gas sector are among the nonrenewable energy sectors that contribute immensely to the economic development of more than 98 countries around the globe. Nigeria depends largely on revenue from oil and gas. Unfortunately, oil and gas companies mostly evade taxes. This study aims to investigate the effects of variables subsumed in the economic deterrence theory of Allingham and Sandmo (1972), which comprise (tax rate, penalty and detection probability) with one additional variable royalty rates (RR) on petroleum profit tax compliance (PPTC).Design/methodology/approachThe study used a survey to collect data from 300 local and multi-national oil and gas companies in Nigeria. SPSS version 25 and partial least squares-structural equation modeling (PLS-SEM) version 3.8 were used to analyze the data.FindingsThe results reveal that there is a negatively significant relationship between tax rate and RR and PPTC. The findings also show a positive and significant relationship between penalty and detection probability and PPTC.Originality/valueThe implication of the current study is that the current tax rate and RR are determinants of PPTC in Nigeria. Policymakers, in collaboration with the tax authority, should revisit these variables to enhance the level of PPTC, which could lead to an overall improvement in the country’s tax revenue.

Pengaruh Penerapan E-Filling Perpajakan, Kualitas Pelayanan, Kesadaran Wajib Pajak, dan Sanksi Perpajakan pada Kepatuhan WPOP

This study aims to determine the effect of e-filling forwarding, quality, taxpayer awareness, and tax sanctions on individual taxpayer compliance at East Denpasar KPP. The data analysis method used is multiple linear regression. The results of this study indicate that the good application of e-filling, quality of service, awareness of taxpayers, and tax penalties have a significant effect on the compliance of individual taxpayers who are registered at the East Denpasar KPP. This research can be used as a motivation for KPT Prtama East Denpasar to be able to maintain good service quality for the satisfaction and comfort of taxpayers to carry out their tax obligations.
 Keywords: Application of E-Filing; Service Quality; Taxpayer Awareness; Tax Sanctions; Obedience.

The Effect Of Earning Rate And Tax Sanctions On Taxpayers’ Compliance In Reporting Tax Annual Letter Of Notification For Private Taxpayers In The Area Of Medan Deli

Medan Deli describes one of the districts in the city of Medan which is included in the authority of the Tax Office (KPP) Pratama Medan Belawan. Taxpayer compliance particularly individuals is still very low in the area of Medan Belawan. There are several aspects that affect the taxpayer compliance level, including the level of income tax payers and tax penalties. There are three theories used in this study including theories about the level of income, the theory of tax penalties and theory of taxpayer compliance. This research methods used in this study are quantitative approaches, type of exposure studies and the nature of study explanatory. The study populations were all individual taxpayers in Medan Deli district, amounting to 25. 650 taxpayers. The samples were 100 taxpayers. The study showed that the level of earnings and tax penalty simultaneously affected taxpayers compliance as shown by F-observed (132,033) > F-table (3,09) and partially earning level affected taxpayers’ compliance in which F-observed (4,744) > F-table (1,98472), and partially tax penalty affected taxpayers’ compliance in which t-observed ((3,770) > t-table (1,98472). This study concluded that the level of income and the tax penalty affect tax compliance in submitting the annual letter of notification (SPT) for individual taxpayers in Medan Deli area.

Moderating role of patriotism on sales tax compliance among Jordanian SMEs

PurposeThe purpose of this paper is to investigate the impact of tax audit, tax rate and tax penalty on sales tax compliance and examine the moderating effect of patriotism on the associations between tax audit, tax rate and tax penalty with sales tax compliance among Jordanian manufacturing small- and medium-sized enterprises (SMEs).Design/methodology/approachIn this study, 660 questionnaires were distributed by using systematic random sampling to manufacturing SMEs in Jordan, after which a total of 385 useable questionnaires were deemed suitable for analysis. Partial least squares structural equation modelling (PLS-SEM) was used to validate the measurement model and structural model and the predictive relevance of the study’s model.FindingsThe findings showed that tax audit and tax penalty were positively associated with the level of sales tax compliance, whereas tax rate was insignificantly associated with sales tax compliance. They also demonstrated the moderating significant effect of patriotism on the relationship between tax penalty, tax audit and tax rate with sales tax compliance.Research limitations/implicationsTax authorities and policymakers in developing majority societies in developing countries and in other Arab countries, especially in Jordan may use the results to focus their interest on the formulation of policies founded on the outcomes of the study to strengthen eligible SMEs to comply to further boost their sales collections.Originality/valueThis study extends the deterrence theory in the context of sales tax compliance by proposing the moderating effect of patriotism in the deterrence theory on sales tax compliance among SMEs. Moreover, the suitability for the use of PLS-SEM as a statistical tool in investigating the extended deterrence theory with patriotism as a moderating variable as well as its implications for theory and practice was also discussed.

Social Norms Moderate the Effect of Tax System on Tax Evasion: Evidence from a Large-Scale Survey Experiment

In this study, we reconcile conflicting findings from the extant literature on the impact of tax system parameters on tax noncompliance. We argue that social norms play a role of heuristics facilitating tax payers’ response to the instrumental incentives posed by the systemic parameters, such as tax rate and penalties for evasion, and thus moderate the effect of those parameters on willingness to evade taxes. Relying on a unique survey experiment conducted in fourteen countries of Central-Eastern Europe, we demonstrate two types of a conditioning effect of norms. First, the impact of tax rates on respondents’ propensity for tax evasion is moderated by the perceived norms of the society at large (descriptive norms). In particular, an increasing tax rate lowers the probability of evasion as long as one views “most others” as honest taxpayers, which highlights the importance of equitability (fairness) concerns for tax compliance decisions. In contrast, the impact of punishment is moderated by the perceived norms of one’s immediate reference group (subjective norms). Strong subjective compliance norms tend to effectively replace penalties as a mechanism discouraging tax evasion, suggesting that the deterrent effect of a penalty can be entirely suppressed when subjective norms are strong. These findings have important implications for the understanding of tax compliance decisions under different formal and informal regimes.

Faktor-Faktor Yang Mempengaruhi Tingkat Kepatuhan Wajib Pajak Orang Pribadi di Kantor Pelayanan Pajak Pratama Semarang Selatan Tahun 2019

Abstract - This study aims to examine the effect of e-registration, e-filing, e-billing, service quality, understanding of taxation regulations, and tax penalties on the level of taxpayer compliance. The population in this study is 16.356 people in the area of Tax Service Office of Pratama in the city of Semarang Selatan. The sample in this study were 50 respondents obtained by the accidental sampling method. The Data were analyzed by using Structural Equation Modeling (SEM) with Partial Least Square (PLS) Path Modeling using SmartPLS 3.0 software. The results showed that e-registration, e-filing, and service quality partially affected the taxpayer compliance while e-billing, understanding of taxation regulations, and tax penalties did not affect the taxpayer compliance. The conclusion of this research is e-registration, e-filing, and service quality have a positive and significantly influence to taxpayer compliance, while e-billing, understanding of taxation regulations, and tax penalties have no influence on the level of taxpayer compliance. Keywords: Taxpayer Compliance, E-system, Understanding of Taxation Regulations

Faktor-Faktor Dalam Menggunakan E-Money (Gopay) Pada Masyarakat Muslim di Kota Semarang

Abstract - This study aims to examine the effect of e-registration, e-filing, e-billing, service quality, understanding of taxation regulations, and tax penalties on the level of taxpayer compliance. The population in this study is 16.356 people in the area of Tax Service Office of Pratama in the city of Semarang Selatan. The sample in this study were 50 respondents obtained by the accidental sampling method. The Data were analyzed by using Structural Equation Modeling (SEM) with Partial Least Square (PLS) Path Modeling using SmartPLS 3.0 software. The results showed that e-registration, e-filing, and service quality partially affected the taxpayer compliance while e-billing, understanding of taxation regulations, and tax penalties did not affect the taxpayer compliance. The conclusion of this research is e-registration, e-filing, and service quality have a positive and significantly influence to taxpayer compliance, while e-billing, understanding of taxation regulations, and tax penalties have no influence on the level of taxpayer compliance. Keywords: Taxpayer Compliance, E-system, Understanding of Taxation Regulations

Effect of tax penalties, tax audit, and taxpayers awareness on corporate taxpayers’ compliance moderated by compliance intentions

This study aims to empirically examine the impact of tax penalties, tax audits, and taxpayers’ awareness of corporate taxpayer compliance and the role of compliant intentions as the moderating variable in its correlation. The analytical method used is the Multiple Linear Regression (Multiple Regression Analysis) and the Moderated Regression Analysis (MRA). The population of this study is the corporate taxpayers in North Banjarmasin Tax Office in 2019 with a sample of 142 corporate rate taxpayers. The sampling method used is convenience sampling. The results show that tax penalties, tax audits, and taxpayers’ awareness positively affect corporate taxpayer compliance. However, the compliant intention is unable to moderate the effect of fines, tax audits, and taxpayers’ awareness toward corporate taxpayer compliance. This is due to the applied penalties and tax audits following the taxation laws and the corporate taxpayer’s awareness of the importance of taxation as the source of state income. The purposes of this research are to provide inputs and references for the tax authorities and taxpayers, to examine further about tax penalties and tax audits that have been implemented, and to raise awareness among taxpayers for complying with taxes. Then, this research is influenced by external factors and internal factors, namely penalty sanctions, tax audits, and awareness of taxpayers who make taxpayers compliant with taxes, so that the presence or absence of intentions will continue to make taxpayers obedient to taxes.

A New Examination of an Old Question: Is it Constitutional to Tax Marriage?

ABSTRACT In 2015, the U.S. Supreme Court recognized the fundamental right to marry in Obergefell v. Hodges. At the same time, the tax code commonly taxes married couples at a higher effective tax rate than their unmarried counterparts. We examine the constitutionality of the penalty on marriage, critically reviewing the justification for the penalty accepted in Johnson v. U.S. in 1976. Our evaluation of the tax system suggests that the marriage tax penalty violates due process and may violate equal protection and the First Amendment for some taxpayers. JEL Classifications: D15; H21; H24; H31; K34.

The ACA's Individual Mandate In Retrospect: What Did It Do, And Where Do We Go From Here?

The Affordable Care Act required most people to obtain health insurance or pay a tax penalty. Legislation enacted in December2017 effectively repealed that requirement, starting in 2019. This article reviews recent research on the mandate's effects, concluding that the mandate meaningfully increased insurance coverage, but likely by less than was projected before implementation. These coverage gains are likely to erode as mandate repeal takes hold. Looking ahead, policy makers have many options for expanding insurance coverage without restoring an individual mandate. However, achieving universal coverage without some form of mandatory individual contribution to health insurance would have a very large fiscal cost.

Analysis of the Application of Government Regulation No.23 of 2018, Understanding of Taxation and Tax Sanctions Against MSMEs Taxpayer Compliance

The purpose of this study was to determine the effect of Government Regulation No. 23 of 2018, Understanding of Taxation and Tax Sanctions on MSMEs Taxpayer Compliance in Plaza Harmoni, Tangerang City. The application of Government Regulation (PP) Number 46 of 2013 is one of the government's efforts to improve tax compliance for MSMEs. Besides, the government has also provided tax penalties for taxpayers who do not pay taxes. Data analysis techniques using multiple linear regression analysis methods, the sample in this study was 100 respondents. The results showed a T value of X1= 4.723, X2 = 3,975, and X3 = -0.033. It means that the application of PP 23 of 2018, understanding taxation, and Tax sanctions had a positive and significant effect on Msme's taxpayer compliance

Effect of Tax Rates, Penalty Rate, Detection Probability, Cost of Compliance, Royalty Rates, Environmental Regulations, and Petroleum Profit Tax Compliance the Moderating Role of Trust in Government: A Conceptual Framework

The paper presents a theoretical framework on the moderating effect of trust inauthority on the relationship between tax rates, penalty, detection probability, costof compliance, royalty rates, environmental regulations, and petroleum profit taxcompliance. The objective of the proposed framework is to expand the Allinghamand Sandmo (1972) model of tax compliance by adding two more predictor variablesrelevant to the oil and gas industry (royalty rates and environmental regulations), andmoderating variable (trust) to better explain the relationship. Allingham and Sandmo(1972) model received a lot of criticisms for not considering other non-human factorsthat can help in determining taxpayers’ compliance behavior, hence the expansion ofthe model to include new variables, purely non-human factors which are relevant to theindustry in question. A thorough search of the following databases: Scopus database,Web of Science, Emerald, Google Scholar, among others was conducted to come upwith the relevant and related literature on the subject matter. Providing empiricalevidence through validation of this framework would have important implicationsfor policymakers in host oil and gas producing countries, oil and gas operators, thedeterrence theory as well as future research.

TAX COMPLIANCE WITH TAXPAYER AWARENESS AS AN INTERVENING VARIABLE

Purpose of the study: This research explores the role of taxpayer awareness as an intervening variable in analyzing the effect of tax penalties and tax audits on taxpayer compliance.
 Methodology: The Research to use a purposive sampling method with the type of sample selection based on consideration the judgment sampling.
 Main Findings: The results of the SmartPLS Version 3.0 test provide evidence that tax penalties and tax audits carried out by professional auditors proved to be able to increase taxpayer compliance in paying their taxes in a timely manner.
 Applications of this study: The population of this study is individual taxpayers who carry out free work recorded at Tax Offices (KPP) Pratama Makassar (KPP Pratama Makassar Utara, KPP Pratama Selatan, and KPP Pratama Makassar Barat). whose status is still active, until January 2017 there were 234,104 effective taxpayers.
 Novelty/Originality of this study: The nationalism of the people as citizens and as high taxpayers creates a high sense of tax awareness that has an impact on their high compliance in paying taxes.