A Tax Compliance Model with Legal Certainty Factors: A Laboratory Experiment Study

Rahayu Paramita Anjelina; Suwandi Suwandi

doi:10.21070/jas.v8i1.1796

(1) * Rahayu Paramita Anjelina Universitas Muhammadiyah Gresik
Indonesia
(2) Suwandi Suwandi Universitas Muhammadiyah Gresik
Indonesia
(*) Corresponding Author

DOI: https://doi.org/10.21070/jas.v8i1.1796

Abstract

This study aims to examine whether there is a difference in tax compliance between high and low law enforcement. This research was quantitative in nature and employed a 2x1 factorial experimental design, testing the dimensions of law enforcement in high and low conditions. The participants involved in this study are 95 undergraduate accounting students from the Faculty of Economics and Business who have taken taxation courses at the University of Muhammadiyah Gresik. The results of this research indicate a significant difference in tax compliance between the high and low law enforcement conditions. This suggests that taxpayers feel burdened by the prospect of high tax sanctions in the future. Taxpayers are more likely to choose compliance when law enforcement is stronger or when tax penalties are more severe. Without sanctions, taxpayers may underestimate the importance and choose not to fulfill their tax obligations properly.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

References

Alligham, S. (1972). Illicit activity: The economics of crime, drugs and tax fraud. Illicit Activity: The Economics of Crime, Drugs and Tax Fraud, 1, 1–289. https://doi.org/10.4324/9781315185194

Benk, S. 2016, Budak, T., Yüzba, B., & Mohdali, R. (2016). The Impact of Religiosity on Tax Compliance among Turkish Self-Employed Taxpayers. Religions, 7(4), 1–10. https://doi.org/10.3390/rel7040037

Damayanti, L. Dwi, & Amah, N. (2018). Individual Taxpayer Compliance: The Effect of Administrative System Modernization and Tax Amnesty. Journal of Accounting and Education, 7(1), 57–71.

Damayanti, T. W., & Martono, S. (2018). Taxpayer Compliance, Trust, and Power. Journal of Finance and Banking, 22(2), 231–239. https://doi.org/10.26905/jkdp.v22i2.1580

Dewi, S. K., & Merkusiwati, N. K. L. A. (2018). The Influence of Taxpayer Awareness, Tax Sanctions, E-Filing, and Tax Amnesty on Taxpayer Reporting Compliance. Accounting E-Journal, 22, 1626. https://doi.org/10.24843/eja.2018.v22.i02.p30

Ernawati, F. (2018). The Effect of Knowledge and Sanctions on Taxpayer Compliance with Religiosity as a Moderating Variable. Literate Syntax; Indonesian Scientific Journal, 6(6), 3080. https://doi.org/10.36418/syntax-literate.v6i6.1430

Hayat, M. A. N., & Kristanto, R. (2019). The Effect of Tax Forgiveness and Ease of Tax Administration on Individual Taxpayer Compliance at Kpp Pratama Jakarta Penjaringan. Transparency of the Scientific Journal of Administrative Sciences, 1(2), 218–234. https://doi.org/10.31334/trans.v1i2.305

Karnedi, N. F., & Hidayatulloh, A. (2019). The Influence of Tax Awareness, Tax Sanctions and Tax Amnesty on Individual Taxpayer Compliance. Profita Journal, 12(1), 1. https://doi.org/10.22441/profita.2019.v12.01.001

Laura, L., & Akhadi, I. (2021). The Influence of Understanding, Awareness, Service Quality and Sanction Firmness on Wpop Compliance. Business Media, 13(1), 55–64. https://doi.org/10.34208/mb.v13i1.954

Masruroh, S., & Zulaikha. (2013). (Empirical Study on OP Taxpayers in Tegal Regency). 2(2009), 1–15.

Matasik, A. L., & Damayanti, T. W. (2019). Recurring Tax Forgiveness and Legal Certainty in Tax Compliance in Indonesia: A Quasi Experiment. Assets: Journal of Accounting and Education, 8(2), 126. https://doi.org/10.25273/jap.v8i2.4189

Matasik, A. L., Panggalo, I. S., & Kala'tiku, A. (2021). Quasi-Experimental Testing of MSME Tax Compliance: Tax Fairness and Tax Benefits. JEMMA (Journal of Economic, Management and Accounting), 4(2), 158. https://doi.org/10.35914/jemma.v4i2.739

Mujaddid, A., & Ramadan, G. R. (2019). Religiosity Factors in Paying Taxes & Zakat. Infestation, 15(2), 98–110.

Nazaruddin, I. (2019). The Role of Religiosity and Patriotism in Improving Taxpayer Compliance. Journal of Accounting and Investment, 20(1). https://doi.org/10.18196/jai.2001111

Pratiknjo, M. L., & Lasdi, L. (2022). The Effect of Tax Sanctions and Tax Amnesty on Taxpayer Compliance Decisions. Accounting Perspectives, 5(2), 021–036. https://doi.org/10.24246/persi.v5i2.p021-036

Rara Susmita, P., & Supadmi, N. (2016). The Influence of Service Quality, Tax Sanctions, Tax Compliance Costs, and Implementation of E-Filing on Taxpayer Compliance. Accounting E-Journal, 14(2), 1239–1269.

Suyanto, S., & Putri, I. S. (2017). The Influence of Taxpayer Perceptions Regarding Tax Amnesty (Tax Forgiveness) Policy, and Motivation to Pay Taxes on Tax Compliance. Journal of Accounting, 5(1), 49. https://doi.org/10.24964/ja.v5i1.256

Tahar, A., & Rachman, A. K. (2014). The Influence of Internal Factors and External Factors on Taxpayer Compliance. Journal of Accounting and Investment, 15(1), 56–67.

Tiraada, T. A. M. (2013). Tax Awareness, Tax Sanctions, Fiscus Attitude towards Wpop Compliance in South Minahasa Regency. Emba Journal, 1(3), 999–1008.

Torgler, B. (2008). What Do We Know about Tax Fraud? An Overview of Recent Developments. Social Research, 75(4), 1239–1270.

Utami, C. K. (2017). Perceptions of tax law enforcement and taxpayer compliance. Ecubist Journal, 2(1), 53–67.

Wulan, R. (2013). The Influence of Law Enforcement and the Self Assessment System on Tax Compliance. The Influence of Law Enforcement and Self Assessment Systems on Tax Compliance, 15 (taxpayer compliance), page 3 of 5.

Taing, H. B., & Chang, Y. (2020). Determinants of Tax Compliance Intention: Focus on the Theory of Planned Behavior. International Journal of Publik Administration, 1–12.