Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 93

Full Length Research Paper

The role of taxpayer awareness, tax regulation and understanding in taxpayer compliance

Yayuk Ngesti Rahayu
  • Yayuk Ngesti Rahayu
  • Economics and Business Faculty, Wisnuwardhana University, Malang, East Java, Indonesia.
  • Google Scholar
Margono Setiawan
  • Margono Setiawan
  • Economics Business Faculty, Brawijaya University, Malang, East Java, Indonesia.
  • Google Scholar
Eka Afnan Troena
  • Eka Afnan Troena
  • Economics Business Faculty, Brawijaya University, Malang, East Java, Indonesia.
  • Google Scholar
Sudjatno
  • Sudjatno
  • Economics Business Faculty, Brawijaya University, Malang, East Java, Indonesia.
  • Google Scholar


  •  Received: 09 July 2017
  •  Accepted: 18 September 2017
  •  Published: 30 November 2017

Abstract

The purpose of this study is to provide an insight into the government’s need for sustainable socialization on the importance of paying taxes. This study also aims to analyze the taxpayer's awareness, whether it can mediate the knowledge and understanding of tax regulations on taxpayer compliance or not. The approach in this study is quantitative, with taxpayers as the respondents. The results show that knowledge and understanding of tax regulation and awareness of taxpayers simultaneously contribute to taxpayer compliance. Also, indirectly, knowledge and understanding of tax regulation in the society through the awareness of taxpayer do not have significant influence on tax compliance. Based on the questionnaire, the people have not fully mastered the tax administration using information technology and they have not fully realized the importance of paying taxes for the progress of the nation, due to the different demographic background. This study offers a new understanding and a better perspective of the influence of knowledge, understanding, and awareness of taxpayer compliance. The results will be useful for academics, communities, and governments as they are related to the subject of this study.

 

Key words: Knowledge and understanding of tax regulation, awareness, taxpayer compliance.