Full Length Research Paper
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.
INTRODUCTION
LITERATURE REVIEW
RESEARCH METHODS
RESULTS AND DISCUSSION
Based on Table 1, substructural 1 is about the relationship structure of knowledge and understanding of tax regulation (X1), taxpayer awareness (X2) and taxpayer compliance (Y). Simultaneously, knowledge and understanding of tax regulation and taxpayer awareness affect the taxpayer compliance by 0.779 or 779%; while 0.221 or 22.1% is influenced by other factors outside the model. Pengaruh secara langsung pengetahuan dan pemahaman peraturan perpajakan berpengaruh positif dan signifikan terhadap kepatuhan wajib pajak yang ditunjukkan oleh koefisien jalur sebesar 1,022 , pengaruh individual pengetahuan dan pemahaman peraturan perpajakan terhadap kepatuhan wajib pajak ditunjukkan t hitung sebesar 17,998 dengan signifikansi (ρ) 0,0000 < 0,05 maka berdasarkan hipotesis I : dapat diterima pengaruh pengetahuan dan pemahaman peraturan perpajakan berkontribusi dan signifikan terhadap kepatuhan wajib pajak.The direct influence of knowledge and understanding of tax regulation has positive and significant effect on taxpayer compliance shown by path coefficient as much as 1,022, while the influence of individual knowledge and understanding of taxation on taxpayer compliance is shown by t-count which is equal to 17.998 with the significance of (ρ) 0.0000<0.05. Then, hypothesis 1 is acceptable that the influence of knowledge and understanding of tax regulation significantly contributes to taxpayer compliance.Pengaruh secara langsung kesadaran wajib pajak berpengaruh negatif dan signifikan terhadap kepatuhan wajib pajak yang ditunjukkan oleh koefisien jalur sebesar -0,166 atau sebesar -16,6% pengaruh individual kesadaran wajib pajak terhadap kepatuhan wajib pajak ditunjukkan t hitung sebesar -2,927 dengan signifikansi (ρ) 0,0,400 < 0,05, maka berdasarkan hipotesis II : dapat diterima pengaruh kesadaran wajib pajak berkontribusi negarif dan signifikan terhadap kepatuhan wajib pajak. The direct influence of taxpayer awareness has a negative and significant effect on taxpayer compliance and is shown by the path coefficient (-0.166) or equal to -16.6%; the influence of taxpayer awareness on taxpayer compliance is shown by t-count that is -2.927 with the significance of (ρ) 0.0400<0.05. With that, based on hypothesis II, it is acceptable that the influence of taxpayer awareness has a negative and significant effect on taxpayer compliance. As shown in Table 1, substructural 2 is in accordance with the relationship structures of knowledge and understanding of tax regulation (X1) on the taxpayer awareness (X2). The path coefficient is 0.866 or 86.6% with the remaining 13.4% influenced by other factors outside the model.Sedangkan pengaruh langsung pengetahuan dan pemahaman peraturan perpajakan terhadap kedasaran wajib pajak ditunjukkan t hitung sebesar 28,810 dengan tingkat signifikasni (ρ) 0,0000 < 0,04, maka berdasarkan hipotesis II: dapat diterima pengaruh pengetahuan dan pemahaman peraturan perpajakan terdapat kesadaran wajib pajak. The direct influence of knowledge and understanding of tax regulation on taxpayer awareness is shown by t-count of 28.810 with the significance level of (ρ) 0.0000<0.04. As a result, hypothesis II is acceptable and there is a relationship between knowledge and understanding of tax regulation and taxpayer awareness.
Table 2 shows the value of F which is equal to 483.313 with the probability of (ρ) = 0.0000<0.05. Then, it can be said that hypothesis II is accepted; the knowledge and understanding of tax regulation and taxpayer awareness have an influence on taxpayer compliance, therefore, the partial (individual) test can be done. In the partial test (individual), the path coefficient is 1.022 which indicates the direct influence of knowledge and understanding of tax regulation on tax compliance with t-count by 17.998 and probability (sig) by 0.0000. The value of α < 0.05, makes H0 to be rejected and Ha accepted which means that the path coefficient is significant. So, it can be said that the knowledge and understanding of tax regulation have contributed significantly to taxpayer compliance. Moreover, direct testing can be described as shown in Figure 3.The analysis of X1 for Y: fDfrom the above analysis, the significance value of X1 was 0.0000<0.05, so that there is a significant effect on X1 for Y. The analysis of X2 for Y: the significance value of X2 is 0.004<0.05. Thus, it can be concluded that X2 is significantly affected by Y.
Taxpayer awareness testing as an intervening variable in the relationship of knowledge and understanding of tax regulation towards taxpayer compliance
The analysis of X1 through X2 to Y is known as the direct influence of X1 to X2 is 0.866, while the indirect influence of X1 to X2 on Y is -0.1437 obtained as 0.866 x -0.166. The total effect is generated from the sum of direct effect and indirect effect: 0.866 + (-0.1437) = 0.7223. Based on the calculation, the value of the direct effect is 1.022 and indirect effect is -0.1437 which means that the direct effect is greater than the indirect effect. The results show that, indirectly, X1 through X2 to Y does not have a significant influence on Y (Figure 4).
Model accuracy
The accuracy of the hypothesis model in this research is measured by the relationship of coefficient determinant R2 in both equations.Pengujuan petepatan model diperlukan untuk menentukan apakan model yang diajukan ssudah seuai (fit) tau konsisten dengan data. The test of model accuracy is necessary to be implemented to determine whether or not the model proposed is appropriate or consistent with the data. Penyjian model dilakukan dengan membandingkan matrik korelasi teoritis dan matrik korelasi empirisnya.The model is presented by comparing the matrix theoretical correlation and matrix empirical correlation. Jika kedua matrik tersebut telah sesuai, maka model teoritis yang diajukan dapat diterima secara sempurna.If both matrices are appropriate, then the proposed theoretical model is perfectly acceptable.
R2 Model = 1-(1-R21) (1-R22)
= 1-(1-0.779)(1-0750)
= 1-(0.221)(0.250)
= 1-(0.05525)
= 0.9447 or 94.47%
Based on the test results above, the value of 0.9447 or 94.47% points out that the model contribution could explain the relationship of the three variables studied
DISCUSSION
The hypothesis test shows that knowledge and understanding of taxation in the society is already good, meaning that higher knowledge and understanding of taxation regulation will create higher compliance in carrying out the taxation obligation. In contrast, lower knowledge and understanding of taxation regulation will decrease the compliance of taxation.Temuan penelitian ini sesuai dengan apa yang dilakukan Rahman Adi Nugroho (2012) dan Munari (2005) kelas ekonomi suatu masyarakat, misalnya akan semakin menentukan siapa yang akan memperoleh seberapa banyak dan ragam informasi pengetahuan perpajakan beserta semua konsekuensi yang ditimbulkannya. The findings of this study are in accordance with the research of Nugroho and Zulaikha (2012) and Munari (2005), discussing an economic class of a society; for example, this will increasingly determine who will get much and various information of taxation knowledge and all the consequences in the society.Didalam keadaan seperti ini masyarakat ditunjukkan pilihan pembayaran pajak tepat waktu untuk menghindari denda dan membayar pajak adalah salah satu bentuk kepeduliaan masyarakat terhadap pentingnya membayar pajak bagi negara untuk pembangunan bangsi dn negara. In such circumstances, the public is given the option to pay taxes on time in order to avoid fines and it is one form of public awareness of the importance of paying taxes for the construction of the nation. This study proves that the contribution of knowledge and understanding of tax regulation leads to a better compliance in the society.
Dengan meningkatnya pengetahuan dan pemahaman peraturan perpajakan membuktikan paling berpengaruh terhadap kepatuhan pajak karena dasar pemungutan pajak adalah Undang-undang yang dapat dipaksakan.The most influential aspect of tax compliance is the increased knowledge and understanding of tax regulation because tax collection is based on a law that can be imposed. Dengan Undang-undang dan peraturan perpajakan khususnya pengenaan sanksi dapat menambah meningkatkan kepatuhan wajib pajak dalam melaksanakan kewajiban perpajakannya. With the laws andregulations of taxation, especially the imposition of sanctions, this can increase taxpayer compliance in carrying out its tax obligation. Temuan ini bertentangan dengan hasil penelitian Bernadette K, Christian K dan Erich Kirchler (2010) yang menyimpulkan kurangnya pengetahuan dan pemahaman perpajakan pemilik usaha kecil cenderung tidak mematuhi membayar pajak. On the other hand, these findings are contradictory to the findings of Bernadette et al. (2010) who concluded on the lack of knowledge and understanding of taxation by small business owners who are less likely to comply with the tax payment.Hasil penelitian ini mendukung penelitian dari Machogu dan Jairus (2013); Nevertheless, the results of this study support the research of Machogu and Amayi (2013), Mas’ut (2004), Laksono and Ardiyanto (2007), Kariyoto (2010), Pratama (2012) and Sjursen et al. (2014) who agreed that there is an influence of tax knowledge and understanding on the compliance in carrying out tax obligations.Krause (2000) dalam Wahyu Santoso (2008) berpendapat bahwa semakin banyak mayarakat yang memahami peraturan perpajakan maka target penerimaan negara dari sektor pajak dapat terpenuhi, karena masyarakat menyadari arti penting pajak bagi negara. Krause (2000) and Santoso (2008) argued that the more, people understand the tax laws, the higher the state revenue obtained from the tax sector because the public realizes the importance of taxes to the state.This study proves the awareness of taxpayers in making tax payments and reports has demonstrated the formal compliance that is, making tax payments and reports right on time. Pengetahuan dan pemahaman peraturan perpajakan yang dimiliki wajib pajak selain memberikan pemahaman hak dan kewajiban wajib pajak, manfaat membayar pajak bagi negara dan khususnya dalam melakukan pembayaran Pajak Bumi dan Bangunan, maka manfaatnya lebih banyak kembali pada pengembangan dan pembangunan wilayahnya, karena Pajak Bumi dan Pangunan merupakan pajak lokal. Knowledge and understanding of taxation regulation by the taxpayer not only gives an understanding of taxpayer's rights and obligation, and the importance of paying taxes to the state especially in making payment of Land and Building Tax, but also benefits regional development because Land and Building Tax is actually a local tax.
CONCLUSION
CONFLICT OF INTERESTS
The authors have not declared any conflict of interests.
ACKNOWLEDGEMENT
The authors thank the Directorate of Research and Community Service (DRPM) for funding this research. This research is part of a dissertation.
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