Tax Fraud Reporting: The Effect of Envious Motive and Financial Reward

DOI

10.2991/teams-19.2019.13How to use a DOI?

Keywords

Tax Fraud Reporting; Financial Reward; Envious Motive; Whistleblower

Abstract

This research examines the influence of envious and financial reward on tax fraud reporting. The focus in this research is on the motivation of a tax payer in reporting other tax payer who committed tax fraud. This research use fully crossed between-subjects design in experimental studies. This research use primary data which is obtained by using experimental studies as a media. The sample used in this research is data from 50 personal tax payers in Indonesia, with an accidental sampling method. There are two motivations in this research, first is intrinsic motivation that we mention as the existence of envious. The envious here means a tax payer who committed tax fraud has higher net income so that they have bigger funds or capital to develop their business, compared to tax payers who obey paying taxes. Extrinsic motivation in this research is financial reward, which means the tax payers who report the tax fraud (whistleblower) to the Pusat Pengaduan Direktorat Jenderal Pajak will get amount of money as a reward. This research found that both of this motivation do not have significant effect on the intention to report a tax payer who committed tax fraud. But, when envious motive associated with moral obligations as mediation variable, it shows better result. This research contributes to Indonesia Tax Authority in optimizing the participation of whistleblower, which will minimize the occurrence of tax fraud. The result of this research gives some suggestions to improve tax compliance that will create justice for all tax payers in Indonesia, some action that will support whistleblower is increasing protection for the tax fraud reporter. Other suggestion is to motivate even more, both in moral and reward.

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  - Illona Jevera
AU  - Janice Zerlinda
PY  - 2019/11
DA  - 2019/11
TI  - Tax Fraud Reporting: The Effect of Envious Motive and Financial Reward
BT  - Proceedings of the International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 19)
PB  - Atlantis Press
SP  - 68
EP  - 73
SN  - 2352-5428
UR  - https://doi.org/10.2991/teams-19.2019.13
DO  - 10.2991/teams-19.2019.13
ID  - Widuri2019/11
ER  -