Linking of taxpayer awareness to taxpayer compliance: The moderating role of account representative employee’s performance

Authors

  • Gunawan Gunawan School of Economics, STIE Bongaya YPBUP Makassar
  • Syamsul Ridjal
  • Hisnol Jamali

DOI:

https://doi.org/10.14738/abr.68.5040

Keywords:

Taxpayer awareness, compliance, account representative employee’s performance

Abstract

The purpose of this paper is to suggest and empirically test a model that explains the linking of taxpayer awareness on taxpayer compliance. In this model, account representative employee’s performance as a moderator variable. A valid research instrument was utilized to conduct a survey of 100 individual taxpayers registered in Tax Offices (KPP) Pratama North Makassar (Indonesia). The model was tested by using the partial least squares (PLS) structural equation modeling technique on the software WarpPLS, version 5.0. A thorough analysis of the role of moderator was carried out. Findings provide support for the proposed model and show that taxpayer compliance depend on taxpayer awareness as well as account representative employee’s performance level. These relationships are moderated by account representative employee’s performance. The model exhibits the highest predictive power when the account representative employee’s performance is also high. The findings may be utilized by Indonesian government and tax practitioners interested in to improvement the taxpayer compliance.

References

. Alfiansyah, F., & Venusita, L. (2012). Influence Account Representative (AR) Against Personal Taxpayer Compliance (KPP Pratama Sidoarjo Utara). Journal of Accounting UNESA, 1 (1).

. Arum, HP (2012). The influence of taxpayers' awareness, tax service, and tax sanction on taxpayer compliance of private persons conducting business activities and free employment (study in kpp pratama cilacap region) (Doctoral dissertation, Faculty of Economics and Business).

. Ashari, A., Widodo, US, & Utami, RH (2017). Sunset Polycy Influence. Tax Amnesty, Tax Sanction, E-SPT and Performance Account Representative to tax compliance level. in proceedings of national & international seminars.

. Bandura, A. (1978). Social learning theory of aggression. Journal of communication, 28 (3), 12-29. https://doi.org/10.1111/j.1460-2466.1978.tb01621.x

. Dewi, SK, & Merkusiwati, NKLA (2018) Effect of Taxpayer Awareness, Taxation Sanction, E-Filing, and Tax Amnesty Against Taxpayer Reporting Compliance. E-Journal of Accounting, 1626-1655.

. Diana, Sari. (2013). Basic Taxation Concepts. Bandung: PT Refika Adimata

. Hasanuddin, R., & Sjahruddin, H. (2017). The Structure of Emotional Intelligence, Spiritual Intelligence and Its Relationship with Work Enthusiasm and Auditor Performance. World Journal of Business and Management, 3(1), 67. http://dx.doi.org/10.5296/wjbm.v3i1.11321

. Herryanto, M., & Toly, AA (2013). Effect of taxpayer awareness, tax dissemination activities, and tax audit on income tax revenue in KPP Pratama Surabaya Sawahan. Tax & Accounting Review, 1 (1), 124

. Hidayati, IF (2014). Effect Analysis of Taxpayer Awareness, Knowledge and Understanding About Tax Regulation, Tax System Effectivity, Fiscal Services, and Tax Sanction on Personal Taxpayer Compliance (Case Study at KPP Pratama Surakarta) (Doctoral dissertation, Muhammadiyah University of Surakarta).

. Kesumasari, NKI, & Suardana, KA (2018). Influence Knowledge Taxation, Awareness and Knowledge Tax Amnesty On WPOP Compliance in KPP Pratama Gianyar. E-Journal of Accounting, 1503-1529.

. Kiswara, D., & Jati, IK (2016). The Effect of E-Filing Application and the Role of Account Representative Against the Imaging Tax Authorities and Compliance Taxpayers. E-Journal of Accounting, 349-377.

. Kock, N. (2011). Using WarpPLS in e-collaboration studies: Mediating effects, control and second order variables, and algorithm choices. International Journal of e-Collaboration (IJeC), 7(3), 1-13. https://doi.org/10.4018/jec.2011070101

. Mardiasmo. (2011) Taxation. Edition Revisi.Yogyakarta: Publisher Andi.

. Muammarsyah, N. (2011). Influence of representative account role, understanding taxpayer tax procedure, and service quality of integrated service place in tax office on taxpayer compliance in fulfilling its tax obligation (case study at eight pratama tax service office in South Jakarta).

. Ndona, YR (2018). Analysis of the influence of awareness, tax knowledge and tax amnesty program on taxpayer compliance (Doctoral dissertation, Widya Mandala Catholic University Surabaya).

. Nugroho, A., Andini, R., & Raharjo, K. (2016). The Effect of Taxpayer Awareness And Knowledge Taxpayer Taxpayer Compliance Taxpayer In Paying Income Tax (case study at KPP Semarang Candi). Journal of Accounting, 2 (2).

. Prihastanti, R., & Kiswanto, K. (2015). Compliance rate of corporate taxpayer against tax revenue is moderated by tax audit. Accounting Analysis Journal, 4 (1).

. Purba, Afrizal. M (2018). The Effect of Taxpayer Awareness, Fiscal Services, Taxpayers and Tax Sanctions Against the Formal Compliance Rate of Individual Taxpayer at Batam Primary Tax Office. Journal of Accounting Barelang, 2 (1),

. Republic of Indonesia (2009). Law No. 16 of 2009 on General Provisions and Procedure of Taxation

. Republic of Indonesia (2012). Regulation of the Minister of Finance No. 162 / PMK.011 / 2012 On Adjustment to the Amount of Non Taxable Income

. Republic of Indonesia. (2012). Regulation of the Minister of Finance.No.74 / PMK.03 / 2012. about the criteria of obedient taxpayers.

. Republic of Indonesia. (2013). Regulation of the Director General of Tax No. PER-03 / PJ / 2013 About. Guidance Counseling Taxation, Directorate General of Tax

. Sandi, NB (2010). Analysis of the influence of consulting services, and account representative oversight of taxpayer compliance: empirical studies at Tangerang and Serpong tax office.

. Setiawan, A. (2017). Influence Performance Account Representative, Self Assessment System, and Tax Inspection Against Taxpayer Compliance Level. Equilibrium: Scientific Journal of Economics, 12 (1), 77-90.

. Sholihin, M., & Ratmono, D. (2013). Analysis of SEM-PLS with WarpPLS 3.0 for Nonlinear Relations in Social and Business Research. Yogyakarta: Andi Publisher.

. Trisnayanti, IAI, & Jati, IK (2015). Effect of Self Assessment System, Tax Inspection, and Tax Billing on Value Added Tax (VAT). E-Journal of Accounting, 292-310.

. Ulfah, S. (2018). Effect of Tax Corruption Perception, Service Quality, Tax Knowledge, Tax Sanction, and Religiosity to Taxpayer Compliance. Faculty of Economics of Islamic University of Indonesia

. Ulyani, T.A. (2017). The influence of the taxpayer's perceptions on the application of e-system and account representative to compliance (study at tax office pratama kendari). Journal of Accounting, 1 (2).

. Waluyo, & Wirawan, B.Ilyas. (2011). Indonesian Taxation, Book One, Edition 10. Jakarta: Publisher Salemba Empat.

Downloads

Additional Files

Published

2018-09-01

How to Cite

Gunawan, G., Ridjal, S., & Jamali, H. (2018). Linking of taxpayer awareness to taxpayer compliance: The moderating role of account representative employee’s performance. Archives of Business Research, 6(8). https://doi.org/10.14738/abr.68.5040