The Analysis of Corporate Taxpayer Compliance and Its Implication to Self-Assessment System Implementation

(Case Study of Tax Officer Pratama Bandung Karees)

  • Purwanto Lecturer of Jenderal Achmad Yani University, Faculty of Economics and Business
  • Hasna Safira Bina Nusantara University
Keywords: Corporate Taxpayer Compliance, Self-Assessment System, Tax Audit, Tax Sanction

Abstract

Self-Assessment System will run effectively if the law implementation such as auditing the taxpayers and enforcing the tax sanction are done optimally. This study aims to examine the impact of tax audit and tax sanctions on corporate taxpayer’s compliance and its implication to Self-Assessment System implementation in Tax Officer Bandung Karees.  The technique of data collection and sampling was done purposively by using questionnaires on Google Form and 110 respondents were obtained. The analysis method used was path analysis. The result showed that both tax audit and tax sanction had a significant effect on corporate taxpayer’s compliance by 60.10% and the remaining 39.90% was influenced by other variables. Tax audition had a direct relationship with Self-Assessment System implementation, while tax sanction has an indirect relationship with the implementation of Self-Assessment System, with corporate taxpayer’s compliance variable as an intervening variable. If both independent variables are consistently conducted, there will be a significant impact to Corporate Taxpayer Compliance, so that the tax revenue target can be achieved as soon as possible.

Keywords: Corporate Taxpayer Compliance, Self-Assessment System, Tax Audit, Tax Sanction

References

Adimassu, N.A., & Jerene, W. (2016). Determinants of Voluntary Tax Compliance Behavior in Self Assessment System: Evidence from SNNPRS, Ethiopia. International Journal of Science and Research (IJSR), Bol. 5, Issue 12: 967-973.

Armaini, R., Mubarok, M., & Sari, Y. (2015). Modernization Modelling of Taxation Administration System in Increasing Taxpayer Compliance. Jurnal Akuntanika, 2(1).

Cox, S.P., & Eger, R.J.I. (2006). Procedural complexity of tax administration: The road fund case. Journal of Public Budgeting, Accounting and Financial Management, 18(3): 259–283.

Dowe, D.E. (2008). E-Filing and E-Payments – The Way Forward, Paper presented at Caribbean Organization of Tax Administration (COTA) General Assembly, Belize City,

Dewi, C.S. & Supadmi, N.L. (2014). The effect of tax supervision, awareness, service quality on the level of supervision of the Corporate Taxpayers at Denpasar Madya KPP. Journal of Accounting at Udayana University, 9.2: 505-514.

Gunarso, P. (2016). Tax Audit and Tax Sanction to Corporate Taxpayer Compliance. Journal of Accounting and Business, 20(2): 214-223.

Hasanah, N., Pahala, I. & Indriani, S. (2012). Effectiveness of Self-Assessment System Implementation and Taxation Modernization Administration to Tax Service Quality. CBAM-FE UNISSULA, 1(1): 773-785.

Ilyas, W. (2017). Purification of Taxation Self-Assessment System. [Online]

Available at: http://id.beritasatu.com/home/pemurnian-sistem-self-assessment-perpajakan/168508

Jaidi, J., Noordin, R., Bin, A., & Kassim, M. (2013). Individual Taxpayers' Perception Towards Self-Assessment System: A Case Of Sabah. Journal of the Asian Academy of Applied Business (2013) 2, 1: 56-65.

Amaluddin & Madi. (2005). Tax Literacy and Tax Awareness of Salaried Individuals in Sabah and Sarawak. Journal of Financial Reporting and Accounting, 3(1): 71-89.

Kasipillai. (2000). Tax Professionals’ view on Self-Assessment System Analysis. Volume 7: 107-122.

Kasipillai, J. (2000). A Practical Guide to Malaysian Taxation-Current Year Assessment. Kuala Lumpur: McGraw-Hill.

Kasipillai, J. (2005). A comprehensive guide to Malaysian taxation under self-assessment system. 2nd ed. Selangor: McGraw Hill.

Kasipillai, J. & Jabbar, A. H. (2003). Tax compliance attitude and behavior: Gender & ethnicity differences of Malaysian taxpayers. The Malaysian Accountant: 1-7.

Kaur, G. (2016). Self-Assessment System of Taxation as a Challenge for India. International Journal of Advanced Education and Research, 1(3): 9-11.

Ahmed, A., & Kedir, S.. (2015). Tax Compliance and Its Determinant the case of Jimma Zone, Ethiopia. International Journal of Research in Social Sciences, Vol. 6, No. 2: 967-973

Kirchler, E., Niemirowski, A. & Wearing, A. (2006). Shared subjective views, intent to cooperate and tax compliance: Similarities between Australian taxpayers and tax officers. Journal of Economic Psychology, 27(4): 502–517.

Kurnia, S. R. (2013). Indonesian Taxation – Formal Concepts & Aspects.

Lasmaya, S.M., & Fitriani, N.N. (2017). The Effect of Self-Assessment System on Taxpayer Compliance. Journal Computech & Business, Vol. 11, No.2: 69-78.

Law Number 6 Year 1983. General Provisions and Tax Procedures.

Loo, E.C., & McKerchar, M. (2010). Challenges in understanding compliance behavior of taxpayers in Malaysia. Asian Journal of Business and Accounting, 3(2): 145-161.

Loo, E.C. (2006). The influence of the introduction on self-assessment on compliance behavior of individual taxpayers in Malaysia. PhD Thesis University of Sydney.

Loo, E.C. (2006). Tax knowledge, tax structure and compliance: A report on a quasi-experiment. New Zealand Journal of Taxation Law and Policy, Volume 12: 117 – 140.

Loo, E.C., McKerchar, M. & Hansford, A. (2008). Tax compliance behavior: Findings derived from a mixed method design. 8th International Tax Administration Conference, Sydney.

Loo, E.C., McKerchar, M. & Hansford, A. (2009). Understanding the compliance behavior of Malaysian individual taxpayers using a mixed method approach. ournal of the Australasian Tax Teachers.

Mardiasmo. (2016). Taxation. Jakarta: Agung Media.

McKerchar, M. (2005). The impact of income tax complexity on practitioners in Australia. Australian Tax Forum, 20(4): 529–554.

Mutascu, M. & Danuletiu, D. (2013). The Literacy Impact on Tax Revenues. Open assessment E Journal: 63.

Muturi, H.M., & Kiarie, N. (2015). Effects of Online Tax System on Tax Compliance Among Small Taxpayers in Meru County, Kenya. International journal of economics, commerce and management. Vol 3, Issue 12: 280-297.

Olatunji, O.C., & Ayodele, K.B. (2017). Impact of Information Technology on Tax Administration in Southwest, Nigeria. Global Journal of Management and Business Research. Vol 17. Issue 2.

Pandiangan, L. (2007). Modernization & Reform of Taxation Services Based on the Latest Law. Jakarta: PT Elex Media Komputindo

Palil, M. R. (2005). Does tax knowledge matter in self-assessment system? Evidence from the Malaysian tax administration. Journal of American Academy of Business, 6(2): 80–85.

Prinz, A., Muehlbacher, S., & Kirchler, E. (2014). The slippery slope framework on tax compliance: An attempt to formalization. Journal of Economic Psychology, 40: 20-34.

Putu & Supadmi. (2016). Effect of Service Quality, Tax Sanction, Tax Compliance Fee, and Implementation of E-Filling to Taxpayer Compliance. E-Jurnal Accounting, 14(2): 1239-1269.

Rahayu, S. K. (2013). Indonesia's Taxation - Concept & Formal Aspect. 1st ed. Yogyakarta: Graha Ilmu.

Rahim, A. (1998). Self-assessment – the Malaysian tax administration. Suara IROU, Volume 25:4-27.

Regulation of the Minister of Finance of the Republic of Indonesia Number 192 / PMK.03 / 2007. Procedures for Determining Taxpayers with Certain Criteria in the Context of Introductory Tax Overpayment Refunds.

Regulation of the Minister of Finance of the Republic of Indonesia Number 123 / PMK.05 / 2006. Tax Audit Procedures.

Regulation of the Minister of Finance of the Republic of Indonesia Number 74 Year 2012 Concerning Procedure for Determination and Revocation of Determination of Taxpayers with Certain Criteria in the Framework of Returning the Excess Tax Overpayment.

Resmi, S. (2017). Taxation - Theory and Case. 10th ed. Jakarta: Salemba Empat.

Richardson, G. (2006). Determinants of tax evasion: A cross-country investigation. Journal of International Accounting, Auditing and Taxation, 15(2): 150–169.

Riduwan & Sunarto. (2015). Statistics for Social Education, Economics, Communication, and Business. s.l.: Alfabeta.

Saad, N. (2014). Tax Knowledge, Tax Complexity and Tax Compliance: Taxpayers’ View. 2nd World Conference on Business, Economics and Management, pp. 1069-1075.

Saad, N., Mansor, M. & Ibrahim, I. (2003). The self-assessment system and its compliance costs. Accounting Seminar, Malaysia.

Saeroji, O. (2017). Measuring the Content of Taxpayer Compliance. [Online]

Available at: http://www.pajak.go.idcontent/article/menakar-kadar kep atuhan-wajib-pajak.

Salendu, I. (2017). Tax Audit as Supervisory on Implementation of Self-Assesment System and Taxpayer Compliance. Journal EMBA, 5(2): 2033-2039.

Samuel, A., & Viswanadham, P. (2016). An assessment of business income taxpayers‟ tax knowledge, tax complexity, and tax compliance: A Case of Amhara Regional State of Ethiopia. International journal of Science and Research (IJSR).

Sugiyono. (2017). Quantitative, Qualitative, and R&D Study. Bandung: Alfabeta.

Wong, K. S. (1999). Self-assessment – The Malaysian tax administration. p. 20–31.

Zaidi, S.K.H., Henderson, C.D., & Gupta, G. (2017). The moderating effect of culture on e-filing taxes: evidence from India. Journal of accounting in emerging economies, Vol 7, Issue 1: 134-152

Published
2020-12-20
How to Cite
Purwanto, & Safira, H. (2020). The Analysis of Corporate Taxpayer Compliance and Its Implication to Self-Assessment System Implementation. International Journal of Economics Development Research (IJEDR), 1(3), 213-224. Retrieved from https://journal.yrpipku.com/index.php/ijedr/article/view/131
Abstract viewed = 25 times
PDF downloaded = 21 times