Effects of taxpayer compliance with taxpayer consciousness as intervening variable


  • Annas Lallo School of economics Bongaya




Fiscal services, tax sanctions, tax examination, taxpayer awareness, and compliance


This study analyzes (1) the effect of tax authorities services on taxpayer awareness; (2) the effect of tax sanctions on taxpayer awareness; (3) the effect of tax audits on taxpayer awareness; (4) the effect of taxpayer awareness on mandatory compliance; (5) the effect of tax authorities services on taxpayer compliance; (6) the effect of sanctions on taxpayer compliance; (7) the effect of tax audits on taxpayer compliance; (8) the role of mediating the awareness of taxpayers in the influence of tax authorities services on taxpayer compliance; (9) the role of mediating the awareness of taxpayers in the effect of tax sanctions on taxpayer compliance; (10) the role of mediating taxpayer awareness in the effect of tax audits on taxpayer compliance. The population of this study is an individual taxpayer who performs free work registered at the North, South and West Makassar Primary Tax Office with 234.104 effective taxpayers still active. The research sample was 100 active taxpayers in the regional office of the directorate general of taxes in South Sulawesi. The sampling technique is purposive sampling. Data were analyzed using the Structural Equation Modeling method with the help of the Smart-PLS 3.0 program. The results of the study show that tax sanctions and tax audits have a direct or indirect effect on taxpayer compliance, while the services of tax authorities do not affect direct or indirect taxpayer compliance. The interesting result in this study is that the service of the tax authorities is not significant towards taxpayer compliance, but the positive influence fully mediates the effect of tax authority’s services on taxpayer compliance through taxpayer awareness.


. Ajzen, I. (1985). From intentions to actions: A theory of planned behavior. In J. Kuhl & J. Beckman (Eds.), Action control: From cognition to Heidelberg's behavior: Springer

. Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50 (2), 179-211.

. Allingham, MG, & Sandmo, A. (1972). Income tax evasion

. Alm, J., Bruner, DM, & McKee, M. (2016). Honesty or dishonesty of taxpayer communications in an enforcement regime. Journal of Economic Psychology, 56, 85-96.

. Alm, J., Cherry, T., Jones, M., & McKee, M. (2010). Taxpayer information assistance services and tax compliance behavior. Journal of Economic Psychology, 31 (4), 577-586.

. Alm, J., Kirchler, E., & Muehlbacher, S. (2012). Combining Psychology and Economics in the Analysis of Compliance: From Enforcement to Cooperation1. Economic Analysis and Policy, 42 (2), 133-151.

. Anderson, JC, & Gerbing, DW (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological bulletin, 103 (3), 411.

. Ariely, D., Kamenica, E., & Prelec, D. (2008). Man's search for meaning: The case of Legos. Journal of Economic Behavior & Organization, 67 (3-4), 671-677.

. Arum, HP (2012). The effect of taxpayer awareness, tax authorities services, and tax sanctions on taxpayer compliance of individuals who carry out business activities and free work (study in KPP Pratama Cilacap Area) (Doctoral dissertation, Faculty of Economics and Business).

. Ayuba, A., Saad, N., & Ariffin, ZZ (2015). The influence of work family conflict and fuel subsidy removal on tax compliance: A proposed framework for small and medium enterprises.

. Belkaoui, AR (2011). International relationship between tax compliance and selected determinants of tax morale. Journal of International Accounting, Auditing and Taxation, 13 (2), 135-143.

. Benk, S., Budak, T., & Cakmak, AF (2012). Tax Professional Perceptions of Tax Fairness: Survey Evidence In Turkey. International Journal of Business and Social Science, 3 (2).

. Bradley, CF (1994). An empirical investigation of factors: Corporate tax compliance behavior (Doctoral dissertation, University of Alabama).

. Castro, L., & Scartascini, C. (2015). Tax compliance and enforcement in evidence evidence from a field experiment. Journal of Economic Behavior & Organization, 116, 65-82.

. Cho, J., Linn, SC, & Nakibullah, A. (1996). Tax evasion with penalty costs and penalty renegotiation. Southern Economic Journal, 172-190.

. Christian, RC, & Alm, J. (2014). Empathy, sympathy, and tax compliance. Journal of economic psychology, 40, 62-82.

. Coricelli, G., Joffily, M., Montmarquette, C., & Villeval, MC (2010). Cheating, emotions, and rationality: an experiment on tax evasion. Experimental Economics, 13 (2), 226-247.

. Damayanti, TW, Sutrisno, T., Subekti, I., & Baridwan, Z. (2015). The role of taxpayer's perception of government and society to improve tax compliance. Accounting and Finance Research, 4 (1), 180.

. De Simone, L., Sansing, RC, & Seidman, JK (2013). Tax compliance programs mutually beneficial? The Accounting Review, 88 (6), 1971-1991.

. Doerrenberg, P. (2015). Does the use of tax revenue matter for tax compliance behavior? Economics Letters, 128, 30-34.

. Doran, M. (2009). Tax penalties and tax compliance. Harv. J. on Legis., 46, 111.

. Dulleck, U., Fooken, J., Newton, C., Ristl, A., Schaffner, M., & Torgler, B. (2016). Tax compliance and psychic costs: behavioral experimental evidence using a physiological marker. Journal of Public Economics, 134, 9-18.

. Feld, LP, & Frey, BS (2002). Trust breeds trust: How taxpayers are treated. Economics of Governance, 3 (2), 87-99.

. Friend, C. (2016). Social contract theory. Retrieved November 10, 2016, from http://www.iep.utm.edu/soccont/.

. Gangl, K., Hofmann, E., & Kirchler, E. (2015). Interaction with taxpayers: A conception of compliance in social dilemmas by power and trust. New ideas in psychology, 37, 13-23.

. Ghozali, I., & Latan, H. (2015). Partial least squares: Concepts, techniques and applications use the SmartPLS 3.0 program for empirical research. Semarang: UNDIP Publishing Agency.

. Gneezy, U. (2005). Deception: The role of consequences. American Economic Review, 95 (1), 384-394.

. Hair, JF (2010). Black, WC, Babin, BJ, & Anderson, RE (2010). Multivariate data analysis, 7.

. Harless, DW (1989). Three essays on the rational requirements of expected utility theory.

. Hartl, B., Hofmann, E., Gangl, K., Hartner-Tiefenthaler, M., & Kirchler, E. (2015). Does the Sole Description of a Tax Authority Affect Tax Evasion? - The Impact of Described Coercive and Legitimate Power. PloS one, 10 (4), e0123355.

. Hauptman, L., Horvat, M., & Korez-Vide, R. (2014). Improving tax administration services as a factor of tax compliance: The case of tax audit. Lex localis, 12 (3), 481-501.

. Indriantoro, Nur. & Supomo, Bambang. (2013). Business Research Methodology for Accounting & Management. Yogyakarta: BPFE.

. Jatmiko, AN (2006). The Influence of Taxpayer Attitudes on the Implementation of Penal Sanctions, Tax Services and Tax Awareness on Taxpayer Compliance (Empirical Study of Individual Taxpayers in the City of Semarang) (Doctoral dissertation, Diponegoro University Post Graduate Program).

. Jogiyanto, HM (2011). Business Research Methodology (Fourth Edition). BPFE. Yogyakarta.

. Kasper, M., Kogler, C., & Kirchler, E. (2015). Tax policy and the news: An empirical analysis of taxpayers' perception of tax-related media coverage and its impact on tax compliance. Journal of Behavioral and Experimental Economics, 54, 58-63.

. Kastlunger, B., Lozza, E., Kirchler, E., & Schabmann, A. (2013). Powerful authorities and trusting citizens: The Slippery Slope Framework and tax compliance in Italy. Journal of Economic Psychology, 34, 36-45.

. Keller, CE (1997). An experimental investigation of how ethical orientations, tax rates, penalty rates, and audit rates affect tax compliance decisions.

. Kennedy, PM, & Anyaduba, JO (2014). The impact of the tax audit on tax compliance in Nigeria. International Journal of Business and Social Science, 5 (9).

. Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus voluntary tax compliance: The "slippery slope" framework. Journal of Economic Psychology, 29 (2), 210-225.

. Kogler, C., Batrancea, L., Nichita, A., Pantya, J., Belianin, A., & Kirchler, E. (2013). Trust and power as a determinant of tax compliance: Testing the assumptions of the slippery slope framework in Austria, Hungary, Romania and Russia. Journal of Economic Psychology, 34, 169-180.

. Li, Z., Zheng, W., Meng, Q., & Jin, S. (2018). The impact of government subsidy and tax policy on the competitive decision-making of remanufacturing supply chains. International Journal of Sustainable Engineering, 1-12.

. Marvina, Ramdhan (2015). The effect of tax law and administration sanction compliance taxpayer. Journal of Survey on Individual Taxpayers in KPP Pratama Bandung Karees

. Mas'ud, A., Manaf, NAA, & Saad, N. (2014). Do trust and power moderate each other in relation to tax compliance? Procedia-Social and Behavioral Sciences, 164, 49-54.

. Masruroh, S. (2013). Effect of Employee Benefits, Taxpayer Understanding, Service Quality, Tax Sanctions Against Taxpayer Compliance (Empirical Study on OP WP in Tegal Regency). Diponegoro Journal of Accounting, 435-449.

. Mazar, N., Amir, O., & Ariely, D. (2008). The dishonesty of honest people: A theory of self-concept maintenance. Journal of marketing research, 45 (6), 633-644.

. McKee, M., Siladke, C. A., & Vossler, C. A. (2018). Behavioral dynamics of tax compliance when taxpayer assistance services are available. International Tax and Public Finance, 25(3), 722-756.

. Mongin, P. (1997). Expected utility theory. Handbook of economic methodology, 342350.

. Moscati, I. (2016). Retrospectives: how came economists to accept expected utility theory: the case of samuelson and savage. Journal of economic perspectives, 30 (2), 219-36.

. Muehlbacher, S., Mittone, L., Kastlunger, B., & Kirchler, E. (2012). Uncertainty resolution in tax experiments: Why waiting for an audit increases compliance. The Journal of Socio-Economics, 41 (3), 289-291.

. Muliari, NK, & Setiawan, PE (2011). Effect of perceptions of taxation sanctions and taxpayer awareness on compliance Individual taxpayer reporting in the pratama tax service office in East Denpasar Accounting and Business Scientific Journal.

. Palil, MR, Akir, MR, & Ahmad, WF (2013). The perception of tax on tax knowledge and tax education with level of tax compliance: A study of the influences of religiosity. ASEAN Journal of Economics, Management and Accounting, 1 (1), 118-129.

. Parasuraman, A., Zeithaml, VA, & Berry, LL (1985). A conceptual model of service quality and its implications for future research. the Journal of Marketing, 41-50.

. Prinz, A., Muehlbacher, S., & Kirchler, E. (2014). The slippery slope framework on tax compliance: An attempt to formalization. Journal of Economic Psychology, 40, 20-34.

. Purnamasari, A., Pratiwi, U., & Sukirman, S. (2018). Influence of Understanding, Tax Sanctions, Level of Trust in Government and Law, and Nationalism Against Compliance with Taxpayers in Paying PBB-P2 (Study on PBB-P2 Taxpayers in Banjar City). Journal of Accounting and Auditing, 14 (1), 22-39.

. Riahi-Belkaoui, A. (2004). International relationship between tax compliance and selected determinants of tax morale. Journal of international accounting, auditing and taxation, 13 (2), 135-143.

. Saad, N. (2010). Fairness Perceptions and Compliance Behavior: The Case of Salaried Taxpayers in Malaysia after the Implementation of the Self-Assessment System. eJournal of Tax Research, 8 (1).

. Saad, N. (2012). Perceptions of Tax Fairness and Tax Compliance Behavior: A Comparative Study (Equivalent Perception and Signs of Compliance with Excise: A Comparative Study). Management Journal (UKM Journal of Management), 36.

. Sapiei, NS (2012). External Tax Professionals 'Perception of the Corporate Taxpayers' Compliance Costs and Behavior under the Self-Assessment System. Monash University Sunway Campus, Malaysia, Kuala Lumpur

. Sekaran, Uma. (2014). Research Method for Business (Research Methods for Business). Book 1 Issue 4. Jakrta: Salemba Four.

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

. Siahaan, FO (2012). The influence of tax fairness and communication on voluntary compliance: trust as an intervening variable. International Journal of Business and Social Science, 3 (21).

. Sjahruddin, H., & Sudiro, A. A. (2013). Organizational justice, organizational commitment and trust in manager as predictor of organizational citizenship behavior. Interdiciplinary J. of contemporary Res. Bus.(IJCRB), 4(12), 133-141.

. Slemrod, J. (2016). Tax compliance and enforcement: New research and its policy implications.

. Suhendra, ES (2010). Effect of Corporate Taxpayer Compliance Level on Increasing Income Tax Receipts. Accounting journal.

. Van Gelder, T. (1998). The dynamical hypothesis in cognitive science. Behavioral and brain sciences, 21 (5), 615-628.

. Vossler, CA, McKee, M., & Jones, M. (2011). Tax information services are available on tax reporting behavior.

. Wahl, I., Kastlunger, B., & Kirchler, E. (2010). Tax compliance trusts and authorities: An empirical analysis of the "Slippery Slope Framework". Law & Policy, 32 (4), 383-406.




How to Cite

Lallo, A. (2019). Effects of taxpayer compliance with taxpayer consciousness as intervening variable. Advances in Social Sciences Research Journal, 6(1), 168–180. https://doi.org/10.14738/assrj.61.5963