Determinants of tax compliance: theory of planned behavior and stakeholder theory perspective

  • 577 Views
  • 35 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The purpose of this research is to analyze and elaborate determinants of tax compliance in the perspective of the theory of planned behavior and stakeholder theory. This research is conducted on a population consisting of corporate taxpayers registered at the Directorate General of Taxes in the region of South Sulawesi. This research uses proportional random sampling to determine the samples. There are 560 respondents out of 1,000 exemplars of distributed questionnaires who are willing to participate. The analysis is conducted by using Partial Least Square (PLS). The result reveals that the behavior of the taxpayers has a positive and significant effect on the intention to tax compliance. The establishment of tax professional behavior to comply can encourage positive behavior of taxpayers, thus, the welfare of the society can be achieved. Subjective norm has a positive and significant effect on the intention to tax compliance. This research focuses on corporate taxpayers; hence, the researchers add social awareness based on stakeholder theory. This research depicts corporate taxpayers as entity that mingles with the society. Therefore, social awareness and cultural adaptation with the social environment through tax payment is a must.

view full abstract hide full abstract
    • Figure 1. Relevance of tax compliance and welfare
    • Figure 2. Interests linkage among the corporations, the government and the society
    • Figure 3. Structural model direct and indirect
    • Table 1. Path coefficient for the attitude and the behavioral intention for tax compliance
    • Table 2. Path coefficient for subjective norm have a positive and significant effect on behavioral intention for tax compliance
    • Table 3. Path coefficient for taxpayer social awareness has a positive and significant effect on behavioral intention for taxpayer compliance
    • Table 4. Path coefficient for social awareness has a positive and significant effect on tax compliance
    • Table 5. Path coefficient for behavioral intention has a positive and significant effect on tax compliance