The complexity of tax regulations and principles of justice as determinants of taxpayer compliance: case of Indonesia
-
Author(s)Chalarce TotananLink to ORCID Index: https://orcid.org/0000-0003-1988-3109
,
JamaluddinLink to ORCID Index: https://orcid.org/0000-0002-8733-3953
,
MuliatiLink to ORCID Index: https://orcid.org/0000-0002-8430-8832
,
Femilia ZahraLink to ORCID Index: https://orcid.org/0000-0002-3783-6288
,
Muh. Ilham PakawaruLink to ORCID Index: https://orcid.org/0009-0008-1447-6006
-
DOIhttp://dx.doi.org/10.21511/pmf.13(1).2024.14
-
Article InfoVolume 13 2024, Issue #1, pp. 174-184
- 219 Views
-
49 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study aims to determine and analyze the determinants of the complexity of tax regulations and the principles of justice regarding taxpayer compliance in Indonesia. The study surveyed 148 individual taxpayers who are entrepreneurs of micro, small, and medium enterprises (MSMEs) using a Google Form. The results show that the complexity of tax regulations has a significant negative effect (–0.253) on taxpayer compliance, and the principles of justice (0.501) have a significant positive effect on taxpayer compliance. An R square shows that independent variables have a 45.5% influence on increasing taxpayer compliance. The degree of the correlation relationship between all independent variables is around 0.674. The results confirm the relationship between the complexity of tax regulations and the principle of justice and their effect on taxpayer compliance. Therefore, to increase taxpayer compliance, the government should put efforts into simplifying and explaining tax regulations. This can help reduce inadvertent errors, increase taxpayer confidence, and reduce the overall cost of complying with regulations. It is important to consider aspects of justice when designing and implementing the tax system. Efforts to increase transparency, reduce injustice, and make taxes applied proportionally can help strengthen taxpayer compliance and support the sustainability of state revenues.
- Keywords
-
JEL Classification (Paper profile tab)M48, M41, K34
-
References32
-
Tables8
-
Figures0
-
- Table 1. Frequency of tax regulation complexity
- Table 2. Frequency of the principles of justice
- Table 3. Frequency of taxpayer compliance
- Table 4. Validity of the tax regulation complexity statements
- Table 5. Validity of the principle of justice statements
- Table 6. Validity of taxpayer compliance statements
- Table 7. Reliability of research variables
- Table 8. Multiple linear regression analysis
-
- Andreoni, J., Erard, B., & Feinstein, J. (1998). Tax compliance. Journal of Economic Literature, 36(2), 818-860.
- Anggoro, D. D., & Aprilian, Y. A. (2020). Defisiensi prinsip keadilan dalam implementasi e-tax Kota Malang berdasarkan prinsip kebijakan pajak yang baik [Deficiency of the principle of justice in the implementation of e-tax in Malang City based on the principles of good tax policy]. Jurnal Pajak Indonesia (Indonesian Tax Review), 3(1), 11-15. (In Indonesian).
- Assiddiq, M. (2023, August 21). Sekilas tentang tax ratio atau rasio pajak Indonesia [A glance at the tax ratio or Indonesian tax ratio]. Pajak.Com. (In Indonesian).
- Basri, Y. M. (2016). Pengaruh dimensi budaya dan religiusitas terhadap kecurangan pajak [The influence of cultural dimensions and religiosity on tax fraud]. Akuntabilitas, 8(1), 61-77. (In Indonesian).
- Budak, T., & James, S. (2018). The level of tax complexity: A comparative analysis between the UK and Turkey based on the OTS index. International Tax Journal, 44, 23-40.
- Christian, Y. A., Nangoi, G. B., & Budiarso, N. S. (2019). Implikasi pengenaan pajak penghasilan final terhadap penghitungan pajak penghasilan badan pada PT. Empat Tujuh Abadi Jaya [Implications of the imposition of final income tax on the calculation of corporate income tax at PT. Four Seven Abadi Jaya]. Going Concern: Jurnal Riset Akuntansi, 14(1), 10-17. (In Indonesian).
- Darmayasa, I. G., & Setiawan, P. E. (2016). Pengaruh modernisasi sistem administrasi perpajakan pada kepatuhan wajib pajak orang pribadi [The influence of modernization of the tax administration system on individual taxpayer compliance]. Jurnal Akuntansi Universitas Udayana, 14(1), 226-252. (In Indonesian).
- Darussalam, Septriadi, D., & Dhora, K. A. (2020). Konsep dan aplikasi pajak penghasilan [Income tax concepts and applications] (2nd ed.). DDTC. (In Indonesian).
- Frey, B. S., & Feld, L. P. (2002). Deterrence and morale in taxation: An empirical analysis (CESifo Working Paper No. 760). Center for Economic Studies and ifo Institute (CESifo), Munich.
- Ghozali, I. (2016). Aplikasi analisis multivariate dengan program IBM SPSS 23 [Multivariate analysis application with the IBM SPSS 23 program]. Badan Penerbit Universitas Diponegoro. (In Indonesian).
- Halim, A., Bawono, I. R., & Dara, A. (2020). Perpajakan: Konsep, aplikasi, contoh, dan studi kasus [Taxation: Concepts, applications, examples, and case studies] (3rd ed.). Penerbit Salemba Empat. (In Indonesian).
- Hoppe, T., Schanz, D., Sturm, S., & Sureth-Sloane, C. (2017). What are the drivers of tax complexity for multinational corporations? Evidence from 108 Countries (WU International Taxation Research Paper Series No. 2017-12).
- Kemenkeu. (2019). APBN 2019: Adil, sehat, dan mandiri [Fair, Healthy, and Independent]. Kementerian Keuangan Republik Indonesia. (In Indonesian).
- Mangoting, Y. (2001). Pajak penghasilan dalam sebuah kebijaksanaan [Income taxes in a discretion]. Jurnal Akuntansi Dan Keuangan, 3(2), 142-156. (In Indonesian).
- Noreen, C. A., & Kristanto, A. B. (2021). Kepatuhan di tengah kompleksitas pajak: Apakah literasi memiliki peran? [Compliance amidst tax complexity: Does literacy have a role?]. Jurnal Riset Akuntansi Dan Perpajakan, 2(2), 184-195. (In Indonesian).
- OECD. (2018). OECD Economic Surveys: Poland 2018. Paris: OECD Publishing.
- Palilu, C. T., & Totanan, C. (2022). Makna kewajiban perpajakan berdasarkan kitab injil Markus [The meaning of tax obligations based on the Gospel of Mark]. Jurnal Pajak Dan Keuangan Negara, 4(15), 191-199. (In Indonesian).
- Parwati, N. M. S., Muslimin, Adam, R., Totanan, C., Yamin, N. Y., & Din, M. (2021). The effect of tax morale on tax evasion in the perspective of Tri Hita Karana and tax framing. Accounting, 7(6), 1499-1506.
- Primasari, S., & Hendrani, A. (2022). Pengaruh kompleksitas pajak, pemeriksaan pajak, dan sanksi pajak terhadap kepatuhan wajib pajak [The influence of tax complexity, tax audits, and tax sanctions on taxpayer compliance]. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 5(4), 1703-1709. (In Indonesian).
- Pusparini, P. D. (2022, January). Program pengungkapan sukarela (PPS) sebagai penghapus dosa [Voluntary disclosure program (PPS) as an atonement for sins]. Direktorat Jenderal Pajak. (In Indonesian).
- Rahayu, S. K. (2013). Perpajakan Indonesia konsep dan aspek formal [Indonesian taxation concepts and formal aspects]. Graha Ilmu. (In Indonesian).
- Resmi, S. (2019). Perpajakan [Taxation] (11th ed.). Salemba Empat. (In Indonesian).
- Safrina, N., Julkawait, & Qalbiah, N. (2018). Account representative “Dua Kaki yang Berdiri di Dua Perahu” dalam rangka pencapaian target penerimaan pajak tahun 2018 (Studi kasus di Kantor Pelayanan Pajak Pratama Gresik Utara) [Account representative “Two Feet Standing in Two Boats” in the context of achieving the 2018 tax revenue target (Case study at the North Gresik Pratama Tax Service Office)]. Jurnal INTEKNA, 18(2), 118-131. (In Indonesian).
- Setiadi, S. (2022). Harmonisasi uu hpp perpajakan Indonesia dengan tax center jilid 2 [Harmonization of the Indonesian taxation act with the tax center, volume 2]. Jurnal Bisnis Dan Akuntansi Unsury, 7(1). (In Indonesian).
- Suasa, M. D. S., Arjaya, I. M., & Saputra, I. P. G. (2021). Asas keadilan pemungutan pajak dalam peraturan pemerintah [Principles of justice in tax collection in government regulations]. Jurnal Preferensi Hukum, 2(1), 6-10. (In Indonesian).
- Sudjana. (2020). Penerapan asas keadilan dan kepastian hukum terhadap pajak penghasilan final bagi usaha kecil [Application of the principles of justice and legal certainty to final income tax for small businesses]. Jurnal Hukum Sasana, 6(2), 110-128. (In Indonesian).
- Sugiyono. (2012). Memahami penelitian kualitatif [Understanding qualitative research]. Alfabeta, Bandung.
- Sugiyono. (2016). Metode penelitian kuantitatif, kualitatif dan R&D [Quantitative, qualitative and research methods and R&D]. CV Alfa Beta.
- Sugiyono. (2018). Metode penelitian kuantitatif, kualitatif dan R&D [Quantitative, qualitative and research methods and R&D]. Alfabeta.
- Totanan, C., Yamin, N. Y., & Afdhal, S. M. (2018). The quality of income of manufacturing companies in Indonesia based on the tax planning and deferred paid tax. Proceedings of the 5th International Conference on Community Development (AMCA 2018).
- Wardani, E., Yuesti, A., & Sudiartana, I. M. (2015). Dampak dimensi keadilan pajak terhadap tingkat kepatuhan wajib pajak badan dalam konteks tri hita karana di KPP Pratama Badung Selatan [The impact of tax justice dimensions on the compliance level of corporate taxpayers in the tri hita karana context at KPP Pratama South Badung]. Jurnal Manajemen Dan Akuntansi STIE Triatma Mulya, 21(2), 99-112. (In Indonesian).
- Wulandari, S., & Budiaji, A. (2017). Pengaruh persepsi keadilan pajak dalam peraturan pemerintah nomor 46 tahun 2013 terhadap kepatuhan dalam memenuhi kewajiban perpajakan [The influence of perceptions of tax fairness in government regulation number 46 of 2013 on compliance in fulfilling tax obligations]. Jurnal Ekonomi Islam, 8(2), 239-268. (In Indonesian).
-
The influence of servant leadership on job satisfaction with individual character as a moderating variable
Bakri Hasanuddin ,
Mustainah M ,
Pricylia Chintya Dewi Buntuang
doi: http://dx.doi.org/10.21511/ppm.19(1).2021.37
Problems and Perspectives in Management Volume 19, 2021 Issue #1 pp. 445-455 Views: 3655 Downloads: 1645 TO CITE АНОТАЦІЯThis study aims to investigate the influence of servant leadership on job satisfaction with individual character as a moderating variable. It used a quantitative approach with multiple linear regression analysis. The population of this study were employees of the Central Sulawesi province industry and trade office. It involved 72 samples selected using a purposive sampling technique. The results showed that servant leadership significantly influence job satisfaction with a value of 82.5%. The most significant factor affecting job satisfaction is wisdom (correlation coefficient = 0.863) in which the higher the wisdom, the higher the job satisfaction. The next factor is persuasive mapping in which the higher the persuasive mapping, the higher the job satisfaction (correlation coefficient = 0.697). Then, it was followed by altruistic calling with the correlation coefficient value of 0.524 in which the higher the altruistic calling, the higher the job satisfaction. The last is emotional healing with a correlation coefficient value of 0.291 in which the higher the emotional healing, the higher the job satisfaction. On the other hand, organizational stewardship is the only factor does not influence the job satisfaction (correlation coefficient = 0.009).
-
Industrial development in Saudi Arabia: disparity in growth and development
Anis Ali
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 23-35 Views: 3004 Downloads: 1021 TO CITE АНОТАЦІЯIndustrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.
-
A model for analyzing the financial stability of banks in the VUCA-world conditions
Svitlana Khalatur ,
Liudmyla Velychko ,
Olena Pavlenko ,
Oleksandr Karamushka ,
Mariia Huba
doi: http://dx.doi.org/10.21511/bbs.16(1).2021.16
Banks and Bank Systems Volume 16, 2021 Issue #1 pp. 182-194 Views: 2305 Downloads: 575 TO CITE АНОТАЦІЯVUСA is a chaotic and rapidly changing business environment that, based on the variability, uncertainty, complexity and ambiguity of the modern world, transforms the approach of banks to the analysis of financial stability. The aim of the paper is to improve tools for monitoring the impact of VUCA-world conditions on the financial stability of banks, namely a model for studying and analyzing the impact of the modern business space “VUCA” on the financial stability of the country's banks. To test the model, the method of constructing regression equations in multifactor regression analysis is used. For this study, data from some Eastern European countries (Ukraine, Belarus, Latvia, Lithuania, Moldova) were used, and time series data were used for 10 years from 2010 to 2019.
Having considered the definition of “VUCA-world conditions”, the model of modern business space “VUCA” was developed when analyzing the activity of banks in the studied countries. Drivers, consequences, requirements and macroeconomic indicators of the countries’ activities in the VUСA-world conditions are determined. The VUCA-world conditions also consider the study of key macroeconomic indicators that allow building long-term relationships throughout the value chain. The analysis of the studied Eastern European countries showed that with the increase of factors of GDP growth, GNI per capita growth, research and development costs, foreign direct investment, and net inflow of 1%, the effective ratio of bank capital and assets also increases. The assessment, in contrast to the existing ones, makes it possible to consider the impact of the macroeconomic environment of banks on their financial stability.
