Individual Tax Compliance: Trust versus Power

DOI

10.2991/teams-19.2019.12How to use a DOI?

Keywords

Tax Compliance; Trust; Power; Voluntary Compliance; Enforced Compliance

Abstract

The objective of this study regards with the issue that Indonesia is facing about tax revenue. Currently, Indonesia does not achieve the tax revenue target. Thus make the tax authority more focuses on tax payer compliance by encouraging voluntary compliance through increased trust to increase tax revenue. However, tax authority has many strategies that the tax authorities were forced to choose various strategies to achieve their goals. One of them is issuing power-based regulations that have impact on enforced tax compliance. Thus encouraging researches to verify the relation between the role of power and trust with individual tax compliance and focused on tax avoidance that is mostly done by the individual tax payer. In this research, using the Structural Equation Model to know the correlation between trust and power towards voluntary tax compliance and enforced tax compliance on individual tax payers who does independent personal services with a revenue above and below 4.8 billion per year. This research is expecting to contribute to the tax authority to find out the factors that encourage tax payer compliance. The expectation of this study is to show that trust gives a positive effect on tax compliance by mediating with voluntary compliance. While Power does not affect tax compliance even though it has been mediated by forced compliance.

Copyright

© 2019, 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  - Retnaningtyas Widuri
AU  - Mellyana Jie
AU  - Angela Christie
PY  - 2019/11
DA  - 2019/11
TI  - Individual Tax Compliance: Trust versus Power
BT  - Proceedings of the International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 19)
PB  - Atlantis Press
SP  - 61
EP  - 67
SN  - 2352-5428
UR  - https://doi.org/10.2991/teams-19.2019.12
DO  - 10.2991/teams-19.2019.12
ID  - Widuri2019/11
ER  -