The Determinants of Tax Evasion in Directorate General of Customs and Excise Jakarta

DOI

10.2991/aebmr.k.200309.041How to use a DOI?

Keywords

CA, SAS, IT, possibility of Fraud detection, Quality Service, Law Enforcement, tax evasion

Abstract

Tax evasion is one of the problems existing in every country in this world, has a negative impact on a country’s economy; is classified as an illegal act, it is an attempt to avoid tax payable by violating tax laws. Indonesia is a country that includes the world top ten countries with the majority of illicit financial depletions, which is more than USD 109 billion; therefore, the Minister of Finance in the DGT-DGCE Synergy Program Kick Off (www.cnbcindonesia.com, 2018) asked those two Directorates to synergize and consistently try to prevent tax evasion. The purpose of this research is to find out and analyze what factors influence the occurrence of tax evasion, especially at DGCE. This research uses a mixture of quantitative and qualitative methods; Structural Equation Modeling (SEM) is applied for quantitative method, meanwhile the qualitative method aims to deepen and confirm the variables studied. In this qualitative research, there were some activities in data analyzing such as data reduction, data display, and conclusion drawing. Primary data collection is conducted by distributing questionnaires to 135 respondents, consisting of Importers and Customs Consultants; besides that, triangulation is also conducted, which interviewed with several relevant officials at DGCE, observation, and documentation. The results of this research with t table = − 1,982 is Customs Audit (CR = − 4,934), Self-Assessment System (CR = − 3,592), Information Technology (CR = − 5,348) and Possibility of Fraud Detection (CR = − 2,421) influenced significantly negative for Tax Evasion. Whereas two other independent variables namely Quality Service (CR = − 1.610) and Law Enforcement (CR = − 1,276) have no effect on Tax Evasion. The recommended and confirmed outcome from interviews and documentation is the consistent implementation of Customs Audit (including Joint Audit with DGT), IT and the more professional handling of Law Enforcement process, which is the preparation of documents and related evidence for this case.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Purwanto Purwanto
AU  - Rizki Indrawan
PY  - 2020
DA  - 2020/03/12
TI  - The Determinants of Tax Evasion in Directorate General of Customs and Excise Jakarta
BT  - Proceedings of the Annual International Conference on Accounting Research (AICAR 2019)
PB  - Atlantis Press
SP  - 187
EP  - 190
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200309.041
DO  - 10.2991/aebmr.k.200309.041
ID  - Purwanto2020
ER  -