Title: THE EFFECT OF TAX AUDIT ATTITUDE, COMPLEXITY OF TAX REGULATIONS, AND QUALITY OF TAX AUDIT ON COMPLIANCE MOTIVATION OF CORPORATE TAXPAYERS IN FULFILLING TAX OBLIGATIONS AT THE SURABAYA RUNGKUT TAX SERVICE OFFICE
Authors: TJANDRA WASESA
Affiliations: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya
Publisher: Universitas Airlangga
Abstract
The role of tax revenue in the next few years will be increasingly challenging given the ongoing economic crisis and the continued vulnerability of socioeconomic stability. This will undoubtedly impact business and investment development, employment opportunities, the production and distribution of goods and services, and ultimately impact the income and purchasing power of the community as a whole. This is reflected in the tax ratio, a benchmark for tax revenue performance, which declined by 0.8% in 2000 from 11.9% in the 1999/2000 fiscal year. This ratio indicates the significant portion of non-oil and gas GDP that can be recovered as taxes. Therefore, to increase this ratio, it is necessary to continuously foster awareness and compliance among taxpayers in paying taxes in accordance with applicable regulations, as well as law enforcement through tax audits.
The level of taxpayer compliance in Indonesia in paying taxes according to applicable regulations is generally low, although this is debatable. One indicator that can illustrate this is the tax coverage ratio, an indicator used to assess the success of tax collection. This ratio represents the comparison between the amount of tax collected and the potential tax that should be collected. In 2000, the average tax collection success rate reached 61.7%, a 15.7% increase from the previous year. This situation provides considerable hope for maximizing tax revenue. Law enforcement is used to maintain and improve taxpayer compliance. One form of law enforcement is tax audits.
Tax audits, in addition to improving taxpayer compliance in fulfilling tax obligations, also aim to prevent a sense of unfairness in tax treatment among taxpayers. Nevertheless, the audit priority policy remains in place with the hope of positively influencing taxpayers in fulfilling their tax obligations. Furthermore, efforts to improve audit quality must be supported by taxpayers, who are obligated to maintain bookkeeping records. To this end, the Directorate General of Taxes continues to strive to refine its audit policies for law enforcement purposes.
The data collection procedure carried out in this study was by distributing questionnaires to corporate taxpayers who had undergone tax audits. The results of the study were obtained using multiple linear regression analysis tools which proved that the attitude of the tax auditor had a positive effect of 2.518 with a probability of 0.013; while the complexity of tax regulations had a positive effect of 2.840 with a probability of 0.005; and the quality of the tax auditor had a positive effect of 2.899 with a probability of 0.005. The results of the analysis also showed that the influence model contained in the theory had met the goodness of fit criteria, which means that the theory could be proven empirically. Ultimately, the findings in this study provide a deeper understanding of several factors in tax audit activities that have a positive effect on the level of compliance of corporate taxpayers in fulfilling tax obligations.
Keywords: Tax Auditor Attitude, Complexity of Tax Regulation, Tax Auditor Quality and Tax Compliance Motivation of Company Taxpayer
Sources: http://repository.unair.ac.id/35527/