THE INFLUENCE OF TAXPAYERS CONSCIOUSNESS, TAX SERVICES AND TAXPAYERS COMPLIANCE ON TAX REVENUE
PERFORMANCE
(Survey on The Individual Taxpayer in South Tangerang)
Created By:
Septian Maulana Yusuf
(109082100006)
ACCOUNTING MAJOR
INTERNATIONAL CLASS PROGRAM
FACULTY OF ECONOMICS AND BUSINESS
SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY JAKARTA
CURRICULUM VITAE
Jakarta, September 23rd 1991
Permanent Address :
Pamulang Permai 1 Blok A.14 No.4 RT.02 RW.010 Pamulang, Tangerang Selatan
Sports, and learning new things
GPA :
Pamulang 1 Junior High School 1997
- 2003
Pamulang Elementary school
2012 UKM Batik “Putra Gobah” Klewer – Solo
2011 Comitte of Futsal Competition (FUSHION)
2013 - ASIAN Tax Community - International Tax Seminar 2012
- Financial Accounting Training - DAAD Seminar on Climate
Change Economy 2010 Insurance Day
2009
- Moderate Muslim Society ”islam in the west and the east: boosting democracy, Human Rights, Freedom and peaceful coexistence”
ABSTRACT
THE INFLUENCE OF TAXPAYERS CONSCIOUSNESS, TAX SERVICES AND TAXPAYERS COMPLIENCE ON TAX REVENUE PERFORMANCE
(Survey on The Individual Taxpayer in South Tangerang)
The purpose of this research is to know the influence of taxpayers consciousness, tax services and taxpayers compliance, as independent variables on the tax revenue performance, as the dependent variable. The data used in this variable is the primary data by using the method of spreading the questioner using convinience sampling method. The sample consists of individuals taxpayers in the South Tangerang. Total questioner that spread is 50. The analysis used multiple regression analysis. Level of significance for t-test of the research is 0.030 for taxpayers consciousness, 0.030 to tax services, and 0.039 for taxpayer compliance and the level of significance for the f-test is 0.000. This shows that taxpayers consciousness, tax services and taxpayers compliance have significant influence on the tax revenue performance.
Key words:
ABSTRAK
Pengaruh Kesdaran Wajib Pajak, Pelayanan Perpajakan, dan Kepatuhan Wajib Pajak terhadap Kinerja Penerimaan Pajak
(Survey Terhadap Wajib Pajak Individu di Tangerang Selatan)
Tujuan dari peneletian ini adalah untuk mengetahui pengaruh kesadaran wajib pajak, pelayanan perpajakan, dan kepatuhan wajib pajak, sebagai variabel bebas terhadap kinerja penerimaan pajak, sebagai variabel terikat. Data yang digunakan dalam variabel ini adalah data primer dengan cara menyebarkan questioner menggunakan metode convenience samping. Sampel terdiri dari wajib pajak individu yang berada di wilayah Tangerang Selatan. Jumlah questioner yang disebar adalah 50. Data diuji dengan analisa regresi linear berganda. Level signifikansi untuk t-test dari penelitian ini adalah 0.030 untuk kesadaran wajib pajak, 0.030 untuk pelayanan perpajakan, dan 0.039 untuk kepatuhan wajib pajak dan level signifikansi untuk f-test adalah 0.000. Ini menunjukan bahwa kesadara wajib pajak, pelayanan perpajakan, dan kepatuhan wajib pajak memiliki pengaruh signifikan terhadap kinerja penerimaan pajak.
Kata kunci:
PREFACE
Assalamu’alaikum Wr.Wb
All praise to Allah SWT and Shalawat always gives to our Prophet
Muhammad SAW
Now with the strength, intelligence, patience, and passion from Allah SWT,
author able to finish this thesis as one of requirements to achieve bachelor degree.
Author believes there is an invisible hand (God) which have helped me going
through this proces.
Author believes that this thesis cound not be finish properly without support
and guidance from various parties either direct or indirect. Especially my Father,
Mother, and my Sister.
Auhor believes author is nothing without each one of you who has helped me
to finish this thesis. Thus, in this very special moment, let author say thanks to all
of them who were helped author through the process of this thesis, including:
1. Prof. Dr. Abdul Hamid, MS as a Dean and my supervisor I who have give
a time to provide guidance, direction, and motivation to author so that
2. Wilda Farah, M. Si as my supervisor II who have give a time to provide
guidance, direction, and motivation to author so that author can finish this
thesis.
3. Mrs. Yulianti as Vice Dean II and my lecture who give author education
and help in finishing this thesis.
4. Mrs. Rahmawati as taxation lecturer who give a lesson about tax and for
help author in finishing this thesis..
5. M. Arief Mufraeni, Lc.,Msi as Head of International Program.
6. Ahmad Dumyathi Bashori, MA as Secretary of International Program.
7. Mr. Sugi Waluyo who give author all information about academic.
8. All lecturer who have taught author patiently and provide uncountable
knowledge, and also academic staff for giving good services.
9. All my friends in Accounting International Program 6th Batch (2009), who
helped author in finishing this thesis. Bunch of love for diah, evi, arini,
opi, aulia, dea, kokoh, angga, ucup, bimo, nanda, putri, pipit, nenek, tami,
cici, gamal, adnan, and osman to every support and motivation that you
gave to finish my thesis, and also for every joy and sorrow that we have
been through together.
10. Thanks to wayan, cimol, brian, fiki, eko, yayan, dhio, fauzi, septya,
danang, and all my friends in accounting B and regular class for helping
author to finish this thesis, and for everything that we spend together.
Author realizes that this thesis is still far from perfection. Suggestion and
LIST OF CONTENTS
CURRICULUM VITAE ... i
ABSTRACT ... ii
ABSTRAK ... iii
PREFACE ... iv
LIST OF CONTECTS ... vii
LIST OF TABLES ... x
LIST OF FIGURES ... xii
LIST OF APPENDIX ... xiii
CHAPTER I : INTRODUCTION A. Background ... 1
B. Problem Formulation ... 6
C. Research Objectives and Benefits ... 6
CHAPTER II : LITERATURE REVIEW A. Basic Concept of Taxation ... 8
1. Definition of Tax ... 8
4. Tax Rates ... 12
5. Taxpayers ... 12
6. Theory Witholding Tax ... 13
7. Tax Payable ... 15
8. Emergence of Tax Payable ... 15
9. Withholding Tax Principle ... 16
10. Withholding Tax System ... 17
B. Taxpayers Consciousness ... 18
C. Tax Services ... 20
D. Taxpayers Compliance ... 22
1. Type of Taxpayers Compliance ... 26
2. Factors Determining High Low Compliance ... 27
3. Criteria Compliant Taxpayers ... 29
E. Tax Revenue Performance ... 29
F. Previous Research ... 33
G. Logical Framework ... 38
H. Hypothesis ... 40
CHAPTER III : RESEARCH METHODOLOGY A. Scope of Research ... 43
B. Sampling Methods ... 43
C. Data Collection Methods ... 44
CHAPTER IV : RESULT AND ANALYSIS
A. Research Objects ... 54
B. Characteristics of Respondents ... 59
1. Return Questionnaire ... 59
2. Description Statistics Demographics of Respondents ... 59
C. Discovery and Discussion ... 62
1. Data Quality Test ... 62
2. Result of Classical Assumption Test ... 66
3. Hypothesis Testing ... 70
CHAPTER V : CONCLUSION AND IMPLICATION A. Conclusion ... 77
B. Implication ... 77
LIST OF TABLES
No. Description Page
1.1 List of Domestic Revenue ... 1
2.1 Previous Research Table ... 33
3.1 Respondents Answer Score ... 44
3.2 Variable Operational Research ... 51
4.1 District in South Tangerang ... 58
4.2 Sample and Retun’s Rate ... 59
4.3 Descriptive Statistic ... 60
4.4 Description of Respondents Demographic Statistics By Education and Sex ... 61
4.5 Taxpayers Consciousness Validity ... 63
4.6 Tax Services Validity ... 63
4.7 Taxpayers Compliance Validity ... 64
4.8 Tax Revenue Performance Validity ... 65
4.9 Reliability Test ... 66
LIST OF TABLES
4.11 Multiple Regression Test ... 70
4.12 Determination Coefficient Test ... 72
4.13 Statistic F Test ... 73
LIST OF FIGURES
2.1 Type of Tax ... 11
2.2 Research Logical Framework ... 39
4.1 Scatterplot Graph ... 68
LIST OF APPENDIX
Appendix 1 ... 82
Appendix 2 ... 83
Appendix 3 ... 87
CHAPTER I
INTRODUCTION
A. Background
Currently, tax is the main source of domestic revenue fund Indonesia.
Most of the sources of revenues contained in the State Budget come from
taxes and, approximately 78.8% of total revenues derived from tax revenue in
2012(www.fiskal.depkeu.go.id). As the largest revenue, taxes are used to
finance government activities such as: expenditures for funding the
government’s administration build and improve infrastructure, provide education and health facilities, finance officers, and financing activities of the
government in providing the needs that are not generated by the private sector.
Government expenditures to finance it could not be fulfilled with good if not
supported by taxpayers and tax officials who are directly related to paying
taxes. The role oftax revenues from year to year has increased its overall
revenue it can be seen in Table1.1
From the table 1.1 it can be seen that the ratio of the percentage each year
in tax revenue and non-tax revenue, the amount of tax revenue is higher than
non-tax revenue, as in 2008 the percentage of tax revenue was 67.2%, and
non-tax revenue was 32.7%, as well as in 2012 the percentage of tax revenue
was 78.8% and non-tax revenue was 21.1%, thus it can be said that tax
revenue as a main source of income for the State.
In an attempt to optimize tax revenue, the government as policy makers
make an improvement in tax reform program through intensification that
seeks to increase tax revenues through increased taxpayer compliance,
taxation apparatus quality capability, excellent service to the taxpayer, and
guidance to taxpayers, administrative oversight , inspection, investigation and
passive and active collection, also law enforcement.
Taxpayers consciousness in paying their taxes correctly is in the spotlight
that not spared from the author's view, given the importance of public
taxpayer consciousness to increase the tax ratio where the Indonesia’s tax ratio
is still relatively low and has a tendency to fluctuate from year to year based
on calculations conducted by the International Monetary Fund (IMF) and
World Bank, and the Asian Development Bank (ADP) (bappenas.go.id).
Taxpayers consciousness formed by taxpayers perception dimensions, the
taxpayer's knowledge, the characteristics of the taxpayer and the tax
counseling. Taxpayers consciousness will increase if in the community when
positive perceptions of tax appear (Suryadi, 2006). With increasing taxation
education will have a positive impact on taxpayers consciousness to pay
taxes.Characteristics of taxpayers that represented by the condition of cultural,
social and economic will dominant forming taxpayers behavior which is
reflected in their consciousness in paying taxes. With taxation counseling
conducted intensively and continuously will be able to increase understanding
of the taxpayer's obligation to pay taxes as a form of national mutual
cooperation in raising funds for the benefit of government funding and
national development. With the increasing of revenue that government
obtained from tax revenue, will also raise development that will be
implemented by the government. Means that the increase in construction as a
proof that tax revenue performance is increased. Research about taxpayers
perception to tax revenue performance has been done by Maria Karanta in
swedia (Suryadi, 2006). The result of the research conclude that positive
society’s perspective influence taxpayers behave in paying their tax. So it will influence tax revenue performance.
Then after knowing and understanding the importance of taxation for
sustainable development and the wheels of government, citizens
consciousness to pay taxes is expected will be increased so the country’s tax
ratio is increase. A low tax ratio indicating of tax collection is not optimal. Not
optimal tax collection could be causes by several things such as low taxpayer
compliance and corruption. Therefore it is natural if some parties want DJP to
Tax services formed by the Human Resources (HR) dimensions, tax
regulations and Tax Information System (Suryadi,2006). Excellent service
quality standard to the community will be met if the human resources perform
their duties professionally, disciplined and transparent. In this condition the
taxpayer satisfied with the service provided to him, then they will tend to
perform the obligation to pay tax in accordance with applicable regulations.
Thus the tax information system and excellent human resources quality will
generate better service tax. This condition will be very influential in
improving tax revenue performance.Suryadi (2006), in his research shows that
the service tax formed by the dimensions of the quality of human resources
(HR), the provisions taxation, and taxation information system did not show
any influence on tax revenue performance.
Taxpayers compliance is formed by the dimensions of the tax audit, law
enforcement and tax compensation. The purpose of inspection is to test
taxpayers compliance in implementing tax obligations. If law enforcement can
provide justice and legal certainty so taxpayers will obey, obedient and
disciplined in paying taxes. If taxpayers feel that tax compensation already
fulfill as expectations then they will pay the tax in accordance with applicable
regulations. With contionus socialization to all society level, they will
understand the impact that will happen if they don’t pay tax. This is what
should be instilled by tax officers in order to create society that has complied
with the obligation to pay tax. With the compliance of the society as the
(2006) in his research shows that the taxpayers compliance formed by the
dimension of tax inspection, law enforcement, and compensation taxes show
the influence on tax revenue performance.
According to Finance Minister Agus Martowardojo (vivanews.com), the
compliance level of all elements in Indonesia toward tax still low. Such as
individual taxpayer is still about 8.5 million of the 110 million who are
actively working with SPT ratio only 7.7 percent. Meanwhile, the business
entities that pay taxes, he added, only 446 thousand compared with a business
that fixed domiciled and active as much as 12 million. "Only 3.6 percent the
compliance.Lower tax payments caused GDP (Gross Domestic Product) is
also low".
Several phenomena of cases occurring in the world of taxation Indonesia
recently made public andtaxpayers concern to paytaxes. One of the cases was
phenomenal from the Gayus Tambunan case. Former tax official IIIA group
was suspected of accepting bribes and gratuities, and stored in a safe deposit
box owned by him Rp74 billion. Gayus assets totaled reached 659.8 thousand
U.S. dollars and 9.68 Singapore dollars. Gayus was also involved incases of
alleged bribery prison chief Mako Brimob (Vivanews, Juny 2010). The
condition can affect tax compliance and reduced public trust of taxation,
because the taxpayers do not want any tax already paid by the tax authorities
Based on the description above, the author would like to further
investigate the problem and compile them in thesis entitled: "THE
INFLUENCE OF TAXPAYERS CONSCIOUSNESS, TAX SERVICES
AND TAXPAYERS COMPLIANCE ON TAX REVENUE
PERFORMANCE (Survey on The Individual Taxpayer in South
Tangerang)"
B. Problem Formulation
In this research the problem that will discussed can be formulated as
follows:
1. Is taxpayer consciousness significantly influence tax revenue
performance?
2. Is tax service significantly influences tax revenue performance?
3. Is taxpayer compliance significantly influences tax revenue performance?
C. Research Objectives and Benefits
1. This research was conducted with the aim of:
a. To analyze the taxpayer consciousness in influencing tax revenue
performance.
b. To analyze the tax services in influencing tax revenue performance.
c. To analyze taxpayer compliance in influencing tax revenue
performance.
2. Benefits of Research:
a. As an opinion for government in determining the policies to improve
b. As a source of information for other researchers who are interested in
the same issues and analysis that can be obtained for those who need
the information.
c. For a comparison of the existing research, also as an opinion and
reference for researchers who will conduct similar research.
d. As an opinion for DJP to know how importance taxpayers
consciousness, tax services, and taxpayers compliance in increasing
tax revenue performance.
e. As an opinion for tax authority to give better services regarding about
taxpayers consciousness, and taxpayers compliance in order to increase
tax revenue performance.
f. To contribute a knowledge for the university in order to improve
quality of the university.
g. To finish the final assignment and finish the bachelor degree.
h. As an opinion for ministry of finance to know how much the taxpayers
consciousness, tax services, and taxpayers compliance in influencing
CHAPTER II
LITERATURE REVIEW
A. Basic Concepts of Taxation
1. Definition of Tax
According to Adam Smith tax isa contribution from citizen to support of the state.According to Feldmann (Suandy, 2008:9) taxes are achievement that unilaterally forced, and payable to the businessman, , no reciprocity, and its solely used to cover general expenses.
According to RochmatSoemitro(Resmi, 2009:1) tax is contribution from the people to the state treasury under the law (which can be enforced) by not getting reciprocal services directly addressed and used to pay for public expenditure.
From the various definitions of the tax, it can be drawn a conclusion
that tax possess some basic aspects (Setiyaji and Amir, 2005):
1. Tax payment should be based on laws;
2. It can be enforced;
3. No direct reciprocity perceived by taxpayers;
4. Polling conducted by the state, and
5. Taxes are used to finance government expenditure (routine and
development) for the public society.
From the various definitions of taxes, there are a few responses from
experts and practitioners taxation. RochmatSoemitro stated that tax is debt,
is society members debt to society. This debt is legally engagement.
related to civil law and customary law. On the other hand, the fulfillment
of tax obligations will have an impact on the economy, from
microeconomics to macroeconomics. If members of the society fulfill their
tax obligations properly, the economic mechanisms in the community will
go well.
2. Type of Tax
Taxes are divided into three types based on the warrant parties (direct
and indirect taxes), collector (state taxes and local taxes), and nature (taxes
subjective and objective).
a. Type of taxes based on warrant parties:
1. Direct tax, is a tax payment that should be bourne by the taxpayer
and is not transferable to another party.
Example: Income Tax
2. Indirect tax, is a tax payment that can be transferred to other
parties.
Example: Sales tax, VAT, VAT-duty, stamp duty and excise.
b. Types of taxes based on collect parties:
1. State tax or central tax, is a tax levied by the central government.
Central tax is one of the state revenue sources.
2. Local taxes, are taxes collected by local governments. Local tax is
one of local government revenue sources.
Example: Tax spectacle, advertisement tax, PKB (Motor Vehicle
Tax), UN dues cleanliness, parking levies.
c. Types of taxes by their nature:
1. Subjective tax, is a tax that pay attention to the condition of the
taxpayer. In this case there must be a objective reasons in
determining the amount of tax that directly related to the ability of
taxpayers to pay.
Example: Income Tax.
2. Objective tax, is a tax based upon the object itself regardless of the
taxpayer.
Figure 2.1
Type of Tax
Source: Data are processed
3. Tax Function
Tax has two functions as follows:
a. Revenue function (Budgetary)
Tax have budgeter function means taxes is one of revenue to
finance both routine and development expenditures, as a source of
state finance, the government attempted to put as much money for
the state treasury (Resmi, 2009:3).
b. Set function (Regulator)
Tax has a regulatory function, meaning that taxes as a gauge set or
fulfilling government's policies in social and economic sector, as
well as achieving certain objectives outside of the financial sector
liquor, so that sales can be controlled. Similarly the excise duty on
cigarettes.
4. Tax Rates
Tax rate is a measure or standard tax collection. There are four types of
tax rates, the proportional rate, fixed rate, progressive rates, and digressive
rates (Waluyo, 2006:56).
a. Proportional rate
The form of a fixed percentage rate to any amount that is taxable, so
the amount of tax payable proportional to the amount of value that is
taxable.
b. Fixed rates
Rates form of a fixed amount against any amount that is taxable, so the
amount of tax payable is fixed.
c. Progressive rates
Percentage rates used increase substantially if the amount taxed
increases.
d. Digressive rates
The percentage rate used smaller when the greater amount taxed.
5. Taxpayers
Understanding of Taxpayer under Law 16 of 2000 on General
Provisions and Tax Procedures Article 1 paragraph (1), namely: Taxpayer
determined to make a tax obligation, including collectors certain taxes or
cutting taxes.
Entities is a group of people or capital either as a union to do business
or not do business that includes a limited liability company, limited
partnership, the other company, State Owned Enterprises or Region
Owned Enterprises by name and in any form, firm, partnership,
cooperative, pension funds, partnerships, associations, foundations,
organizations, political social organization, or similar organization,
agency, permanent establishment and other types of entities.
Enterprise taxpayers tax obligations and individual agencies in
accordance with the Act KUP include:
a. Must register to nearby KPP to get a NPWP.
b. Must fill out and submit SPT correctly, complete and clear.
c. Must pay or deposit the tax due through the post office or a bank
designated perception.
6. Theory Witholding Tax
According Suandy (2005:28), about tax collection:
a. Theory of Insurance
State in carrying out their duties, also includes the duty to protect the
lives and property of the individual wealth. Therefore, the state is
to pay taxes as a premium. However, these theories have long been
abandoned and are now practically no defenders anymore.
b. Theory of Interest
According to this theory of tax payments have a relationship with the
individual interests that derived from state job. The more an individual
received or enjoying the services of a government job, the greater the
tax.
c. Theory of bear power
This theory says that tax collection should be paid according to the
strength of the taxpayer (individuals). Thus, the pressure of all taxes
shall be in accordance with the Taxpayers carry power with respect to
the amount of income and wealth, as well as the taxpayer expenditure.
d. Theory of Purchasing Power
According to this theory the tax collection function when viewed as a
symptom of society, can be equated with a pump that is taking the
purchasing power of the society household for the state household and
then maintain life and to bring in a certain direction. This theory
teaches that organizes public interest is what canbe considered as the
basis of justice tax collectors, not individual interests, nor the interests
e. Absolute Liability Theory
This theory is based on understanding of state organization
(OrganischeStaatsleer) which teaches that the state as an organization
has a duty to hold the public interest. States shall take the necessary
actions or decisions, including the decision in the field of taxation.
With such properties, the state has an absolute right to collect taxes and
people have to pay taxes as a sign of devotion. According to this
theory the basic tax law lies in the relationship between the people and
the state, which the state shall be entitled to tax and duty people pay
taxes.
7. Tax Payable
According to the law No. 28 year 2007 of tax payable is the tax that
should be paid someday, in a tax period, the tax year or in part in
accordance with the provisions of tax laws.
8. Emergence of Tax Payable
There are two teachings that regulate the emergence of tax debt (as the
recognition of the tax debt), material teaching and formal teaching (Resmi,
2009:13).
a. Material Doctrine (Self Assessment System)
Tax debts emerge from applying of tax legislation as well as fulfill
subject terms and object terms. "Naturally" means that the emergence
of the tax debt intervention of tax officials is not necessary, as long as
because of some condition and action. This doctrine is applied to the
self-assessment system.
b. Formal Doctrine (Official Assessment System)
Tax debt emerge because the law at the time of tax assessment issued
by the Director General of Tax. So, as long there is no tax assessment
then no tax debt and there will be no billing although subject terms and
object terms conditions have been met. The doctrine is applied to the
official assessment system,
9. Withholding Tax Principle
To achieve collecting purposes, tax need to uphold collecting
principles in choosing alternative levied. So there is harmony in tax
collection with the purposes and principles required. In the book An
Inquiri into the nature and cause of the wealth of nations (Mansyuri,
2002:70), Adam Smith states that tax collection should be based on the
following principle:
a. Equality
Withholding tax must be fair and equitable, means that the taxes
imposed on an individual who should be proportional with the ability
to pay and according to the benefit received.
b. Certainty
Tax assessment was not determined arbitrarily. Therefore, the taxpayer
must have a clear and definite amount of tax payable, when it must be
c. Convenience
When the taxpayer must pay, is accordance with the best moments that
do not complicate the taxpayer, for example, when taxpayers earn fee.
This collection system is called pay as you earn.
d. Economy
Economically, the cost of collection and fulfillment of tax obligation
costs for taxpayers is expected to a minimum, as well as the burden
borne by taxpayers.
10. Witholding Tax System
Basically there are 3 applicable tax collection system, the official
assessment system, self-assessment system, and withholding system
(Suandy, 2008:17). Official assessment system is a tax collection system
where the amount of tax to be paid or payable by the taxpayer calculated
and set by fiskus/tax authorities. Next, self assessment system, in this
system Taxpayers calculate, pay and report taxes payable by himself
where the tax officials in charge of conducting counseling and supervision.
And last witholding system where in this collection system amount of tax
payable is calculated and deducted by a third party.
Initially the tax collection system in Indonesia using the official
assessment system, but after the introduction of the first tax reformation,
the system was changed to self assessment. The changes are aimed to
prevent fraud that would arise if a tax official in direct contact with the
impact on state revenues is meaningful. Taxpayers report their business so
they pleased. The trend, reporting taxpayer is far below its actual
This system is actually only be executed well in an economic system
that has been established. In these countries, the accounting system has
been developed making it easier for tax officers to conduct surveillance
and the existence of a complete transaction evidence. Our society is not yet
mature enough to be asked to fill in the amount to be payment of properly.
This is because we are still in the transition phase is often characterized by
low consciousness of the law.
Lack of consciousness of the law is shown by the many cases of
taxation that occurs. If the government wants to use this system, the
government should increase public consciousness of the importance of
taxes for the taxpayer so that the taxpayers with his own consciousness
pay taxes in accordance with the actual conditions.
B. Taxpayers Consciousness
Consciousness is the behavior or attitude of an object which involve
assumptions and feelings as well as the tendency to act in accordance the
object. Thus it can be said that the Taxpayer Consciousness in paying taxes is
a form of taxpayer behavior or outlook feelings involving knowledge, belief
and reasoning with tendency to act on the stimulus provided by the system and
The tax provisions. Of literature and the results, several internal factors that
1. Taxpayers Perception
Taxpayer consciousness to fulfill their tax obligations increased if the
public perception appears positive against taxes. Torgler in Ritonga
(2011) states that the payer consciousness taxes to dutifully pay taxes
associated with the perception that include paradigm will be the tax
function for financing development, usability taxes in the provision of
public goods, as well as justice (fairness) and legal certainty in the
fulfillment of tax obligations. Availability public goods is a matter of
confidence in the use of taxpayer taxes paid. If taxpayers feel that the
taxes paid can not be properly managed by the government, so that
taxpayersfeel the real benefit of tax paid, University of North Sumatra
Taxpayers would then tend not to obey.
2. The level of knowledge of the provisions of the applicable tax.
The level of knowledge and understanding of the provisions of the
taxpayers existing taxpayers effect on behavior of consciousness to
pay taxes. Taxpayers who do not understand the tax laws are clearly
taxpayers tend to be disobedient, and vice versa taxpayers increasingly
aware of the tax laws, the more taxpayers also aware of the sanctions
that will be accepted if the neglect tax obligation. Research conducted
by Prasetyo (Ritonga, 2011) provide results that taxpayers
understanding of regulatory taxation significant effect on the
3. The financial condition of the taxpayers
Financial conditions are factors that affect the economy tax
compliance. Financial condition is the ability of financial companies
are reflected in the level of profitability and cash flow. Corporate
profitability is onethe factors that influence the consciousness to
comply with regulationstaxation. Companies that have high
profitability tend tax reporting honestly from the companies that have
low profitability. Companies with low profitability inUniversity of
North Sumatra generally experiencing financial difficulties and tend to
tax non-compliance. Similarly, the cash flow condition and the
liquidity.
C. Tax Services
Service is a way to serve (or preparing to help take care of all the needs
that a person needs). Meanwhile, fiskus is tax authorities. So that the tax
authorities service means as a way to help take care or prepare all someone’s necessities needed (in this case the taxpayer).
According to the Toy Prastiantono quoted by AgusNugrohoJatmiko
(2006), the success rate of tax revenue not only influenced by tax payer but
also influenced by tax policy, tax administration, and tax law. Last three
factors inherent and controlled by the tax authorities themselves, while the tax
carrying out their duties to serve the public or taxpayers is highly affected by
the tax policy, tax administration and tax law.
Study Singh (Ritonga, 2011) also showed that the taxpayers were satisfied
with the services provided by the government, taxpayers will feel obliged to
comply with the law, including tax law. It is suggests that satisfaction with the
tax services can determine the levels of tax compliance. Services have certain
characteristics that distinguish the product goods. Zemke in Collins and
McLaughlinm (Ritonga, 2011) identified several characteristics of the service
as follows:
1. Consumers have the memories. Experience or memory is not can be
sold or given to anyone else.
2. Purpose the provision of services is unique. Every consumer and each
contact is special.
3. Occurs when a particular service, which can not be stored or
sent an example.
4. Consumers are partners involved in the production process.
5. Consumers do quality control by comparing hope to experience.
6. If an error occurs, the only way that can be done tofix it is apologize.
7. Employee morale plays a very decisive.
Macaulay and Cook (Ritonga, 2011) said that the ministry is the image
organization. Satisfactory service consists of three components, and all
the resulting products and services, (b) how employees provide services,
and (c) personal relationships formed through the service.
The tax authorities in charge and utilize human resources needed to
increase taxpayers compliance. Empirically it has been proved by Loekman
Sutrisno in Jatmiko (2006 )who found that there is a relationship between the
payment of taxes to the quality of public services to taxpayers in the urban
sector. The tax authorities are expected to have competence in the sense of
having the expertise (skills), knowledge, and experience in this case tax
policy, tax administration and tax laws. Besides the tax authorities should
have high motivation as a public service (Jatmiko, 2006).
Quality service is the service that can provide satisfaction to customers and
stay within standards of service that can be justified and must be done
continually. In a simple definition of quality is a dynamic state associated with
products, human service, process and environment that fit or exceed the
expectations of those who want it. If the services of an agency does not meet
customer expectations, the services are not qualified (Supadmi, 2006).
D. Taxpayers Compliance
According to Milgram (Ritonga, 2011) compliance associated with
compliance on the authority of the rules. In a more detailed sense, Hasseldine
(Ritonga, 2011) suggests that compliance is to report all property wealth
taxpayer of record at the specified time and returns report accurate tax
the application is recording. According Safri Nurmantu (Ritonga, 2011), tax
compliance is defined as a state where the taxpayer meets all tax obligations
and exercising the right of taxation . There are two kinds of compliance by
Safri Nurmantu (Ritonga, 2011), namely: formal adherence and compliance
material. Formal complianceis a state where the taxpayer to meet the tax
obligations formal accordance with the provisions of the tax laws. For
example provisions deadline Income tax returns (SPT VAT) held on march
31. If the taxpayer had reported income tax returns yearly on or before march
31, then the taxpayer has to meet.
In the context of the Self Assessment System adopted by Indonesia,
complianceis expected that compliance is voluntary and not a forced
compliance. Compliance is required by the Government against the taxpayer
in the system Self Assessment , of course, not adherence without supervision ,
because veryrisky and occurs on the experience in many countries that are not
all taxpayers comply, in many ways they try to minimize evenavoid taxes,
either through tax avoidance , which exploit loopholesbecause the tax laws are
not set or have a lot of interpretationdifferent , or through tax crime is
smuggling taxes (taxevasion).In this case Brooks (Ritonga, 2011) states there
1. Economic Approach
According to the economic approach to tax compliance
ismanifestations of human behavior that make a rational decisionbased on
an evaluation of benefits and costs.Factorsdetermine compliance with this
approach is the tariff rate, the structure of sanctions, andchance ofdetection
by law.
2. Psychological approach
The approach recognizes the tax compliance behavior is influenced
byfactors of one's perspective on the morality of smugglingtax -related
ideasand its values , perceptionsand attitudes toward the possibility
probablitasdetected, the fineand others, changes in behavior, subjective
framework for decisionstaxes.
3. Sociologicalapproach
This approach saw the causes of deviant behavior onethrough the
framework of the social system. According to sociologists,
encouragementor social pressure will form just as effective behaviorwith a
system of reward and punishment made by the Government.Therefore
according to this approach the factors that affect the taxavoidance and tax
evasion is the attitude of the government, a viewconcerning the
enforcement by thegovernment , views onjustice and taxation systems ,
contact the tax office and demographic characteristics.
Gibson in AgusBudiatmanto (Jatmiko,2006)said that compliance is
with established rules. Someone submissive behavior is the interaction
between the behavior of individuals, groups and organizations (Jatmiko,
2006).
In terms of taxes, the rules that apply are the rules of taxation. So in
relation to abiding taxpayers, the Taxpayer compliance is a sense of devotion
to carry out the provisions or taxation rules that are required or requested to be
implemented (Jatmiko, 2006). Since the tax reform in 1983 and the last in
2000 with the reversal Tax Act into Law no.16 of 2000, Law no. 17 of 2000
and Law no. 18 of 2000, the tax collection system in Indonesia is the Self
Assessment System. According Mardiasmo (2009), Self Assessment System is
tax collection system that authorizes taxpayers to determine for themselves the
amount of tax payable. In this system implies that taxpayers have an
obligation to count, calculate, pay and report income (SPT) right, complete
and timely.
Eliyani in AgusNugrohoJatmiko(2006) stated that the Taxpayer
compliance is defined as the time to enter and report the required information,
fill out the correct amount of tax payable, and pay taxes ontime without
coercive action. Noncompliance arises if one define requirements are not met.
Another opinion on compliance Taxpayers also presented by Novak as quoted
by Kiryanto (Jatmiko, 2006), which states a climate of taxpayer compliance
are:
2. Filling out tax forms correctly;
3. Calculating the correct amount of tax;
4. Paying taxes on time.
So the higher the correct count and taking into account rate, accuracy of
deposit, as well as filling and fill the Notice Letter (SPT) taxpayer, it is
expected that the higher the level of compliance and taxpayer in fulfilling their
tax obligations (Jatmiko, 2006).
1. Type of Taxpayer Compliance
According Nurmantu (2009), there are 2 (two) types of compliance,
namely formal adherence and compliance material.
a. Formal Compliance
Formal compliance is a situation where the taxpayer to meet tax
obligations with a focus on the name and form of liability only,
without regard to the nature of that obligation. For example, submit
SPTPPh before 31 March to the Tax Office (KPP), regardless of
whether the content of Tax Notice Letter (SPT) PPh it is correct or not,
and the most important thing SPT PPh be submitted before March 31.
b. Material Compliance
Material compliance is a situation where the taxpayer in addition to
meeting obligations associated with the name and form of tax
obligations, as well as particularly fulfilling nature of taxation
According Gunadi (2005:5) Taxpayer compliance is a taxpayer has a
willingness to meet its tax obligations in accordance with applicable
regulations without the need to hold the examination, investigation,
carefully, warning, or threat, and sanctions participation in law and
administrative.
Thus, it can be concluded understanding of taxpayer compliance is a
condition in which the taxpayer has a willingness to meet tax obligations
without any examination or sanctions imposed and voluntarily willing to
pay its obligations in the form of taxes in accordance with applicable
regulations.
2. Factors Determining High Low Compliance
According Nurmantu (2009), there are several factors that determine
the level of tax compliance, including clarity laws and regulations
implementing the tax, the cost of compliance, and a role model.
a. Clarity
The more clear the laws and regulations implementing the tax, the
easier for taxpayers to meet tax obligations. The more complicated the
implementation of the tax rules, especially when there is uncertainty
and disjunctive rules, the more difficult for taxpayers to meet tax
obligations.
b. Cost of Compliance
fees issued by the government to collect taxes called administrative
cost and expenses incurred by the taxpayer for taxation obligations is
called compliance cost. Compliance costs are all costs both physical
and psychologically to be borne by the taxpayer to meet tax
obligations. Compliance costs consist of fees for consultants /
accountants, personnel costs, transport costs to the tax office / bank /
treasury, photocopy costs as the physical cost and psychological costs
in the form of stress, curiosity, and anxiety. The lower the cost of
compliance, the easier it is for taxpayers to implement tax obligations.
Request copies more than once by section / official tax office under
one roof is an example of unnecessary compliance costs.
c. Modeling
Model system in the taxpayer’s community in Indonesia to be "the
greatest" taxpayer can be a factor that can increase the sense of tax
compliance. Being one of the 100 largest tax payers pushing
conglomerates in both central and regional levels toincrease the tax
payments which also leaned on the level of compliance. The example
given by president to fill SPT and submit to the Tax Office (KPP)
before March 31 contributed to the department heads, business leaders
to encourage members of organizations to follow the lead of the
president of the SPT before the deadline. Conversely, if the head of
yet have a NPWP would be a negative role model for community
members not to implement Taxpayers tax obligations.
3. Criteria Compliant Taxpayers
According to the Decree of the Minister of Finance numbers
544/KMK.04/2000, complianttaxpayers criteria are:
1. Timely submit SPT
Timely submit of SPT include submitting SPT that are not too late in
the last year for the tax period January to November is not more than
three (3) tax period each type of tax and consecutively. Notice Letter
Period of late has been submitted no later than the deadline for
submission of next tax Notice Letter Period.
2. It has no tax arrears for all types of taxes, unless the delinquent taxes
that have been licensed in installments or defer tax payments.
3. The financial statements audited by a public accountant or Government
Oversight Financial Institutions unqualified for 3 consecutive years.
4. Never convicted of a crime in the field of taxation based on court
decisions that have been legally binding for a period of 5 (five) years.
E. Tax Revenue Performance
According Rivaland Fawzi (Ritonga, 2011) performance is a function of
motivation and ability. To complete the task or job, one must have a degree of
willingness and a certain level of ability. Willingness and skills of a person is
performance can be measured through the four aspects of performance,
namely: the aspect of speed, quality aspects, aspects of the service, and value
aspects. Jewell & Marc (Ritonga, 2011) says that assessment performance is
the process used by organizations to assess the extent to which
members have been doing their job satisfactorily. Performance assessment can
be conducted on the performance of individuals and groups of people who
work in organized.
Understanding of the organization's performance is the answer to success
or failure of organizational goals that have been set. The supervisor or
managers often do not notice it unless it's already very bad or anything so
completely wrong. Too often managers do not know how bad the performance
has dropped so companies / agencies face a serious crisis. Bad impressions
profound organizational consequences and ignore the warning signs of
diminished performance. Some management experts formulate the definition
of performance as follows:
a. Stoner in his book Management suggests that performance is a function of
motivation, skills and role perception.
b. Bernardin and Ruseil (Bandarsyah, 2009) as presented in the book
Achmad S. Ruby defines performance as the recording of the results
obtained from the job functions and specific activities for a certain period.
c. Handoko in his Personnel and Resource Management defines performance
d. Prawiro Suntoro (Bandarsyah, 2009) in book Dandian Flag Merry suggests
that the performance is the result of work that can be accomplished person
or group of people within an organization in order to achieve
organizational goals within a certain time period.
e. According to John Whitmore in Coaching for Performance (Bandarsyah,
2009) performance is the implementation of the functions required of
someone . So, the performance is an act, a performance, a public
exhibition ability. Furthermore, John Whitmore argues that performance is
a condition that must be known and confirmed to certain parties to
determine the level of achievement of an agency linked to embrace the
vision of an organization or company and find out the positive and
negative impacts of an operational policy. Performance is an overview of
the implementation of an activity level of achievement in realizing the
goals , objectives , mission and vision of the organization as stated in the
strategic planning of an organization.
f. As'ad (Bandarsyah, 2009) defines performance as a person's success in
carrying out a job.
g. Kurb (Bandarsyah, 2009), defines performance as a combination of work
and organizing one's personal characteristics.
h. Gilbert (Bandarsyah, 2009) suggests that the performance is what can be
done in accordance with the duties and functions.
i. Moh. Pabundu Tika (Bandarsyah, 2009) in his book Culture and
elements contained in the performance are the results of the work function,
the factors that influence employee performance such as motivation, skills,
perceptions of the role and so on , the achievement of organizational goals
as well as the period of time particular.
So it can be concluded that the definition of the performance are the results
of the work or activities of individuals or groups within an organization that is
affected by a variety of factors in order to achieve organizational goals within
a certain time period.Tax revenueisallstate revenueconsisting ofdomestic
taxesandinternationaltradetaxes(Article 1 paragraph3of LawNo.4 of 2012).
From those definitions it is the overall tax revenue performance can be defined
Reasercher
1. Spiritual intelligence has a
significant influence on
the taxpayers motivation
variable
2. Performance of tax service
G. Logical Framework
State revenue in the tax sector is the largest contributor to the state budget.
Since the revenues from oil and gas cannot fulfill most of the national budget,
the government is focusing tax sector as a state revenue sector. So, the
taxpayer consciousness and compliance needs to be improved in order to
increase tax revenues. As well as the service of the tax authorities (fiskus)
should also be addressed so that the revenue that obtained can be optimal.
Hopefully with improved consciousness, tax compliance and services of tax
authorities will have a positive impact on tax revenue performance. Logical
Research Logical Framework
Figure 2.2
Taxasa significant source ofstate revenue, so thattaxrevenue performanceis essentialfornational development, and there are some factors which can
influence tax revenue performance
Theory Basis :The theoryof taxpayers consciousness, theory of tax services, and theory oftaxpayers compliance
Independence Variable Dependence Variable
Taxpayers Consciousness (X1)
Tax Services (X2)
Taxpayers Compliance (X3)
Tax Revenue Performance (Y)
Analysis Method
Quality Data Test (Validity Test, Reliability Test)
Classical Assumption Test
Multiple Regression Test (R2 Test, F Test, t Test)
Result and Analysis
H. Hypothesis
According Indriantoro and Supomo (2002) hypothesis in quantitative
research is the answer to a problem or a question based on research developed
theories need to be tested through the process of selecting, collecting, and
analyzing data. The hypothesis states that supposedly logical relationship
between two or more variables in the formulation of propositions that can be
tested empirically. This hypothesis has multiple functions in the study are as
follows:
1. Hypothesis explaining and solving research problems rationally.
2. Hypothesis states that the research variables need to be tested empirically.
3. Hypothesis are used as guidelines for selecting test data methods.
4. Hypothesis became the basis for making conclusions.
1. Taxpayers Consciousness to Tax revenue performance
Taxpayers consciousness formed by taxpayers perception dimensions,
the taxpayer's knowledge, the characteristics of the taxpayer and the tax
counseling. Taxpayers consciousness will increase if in the community
when positive perceptions of tax appear (Suryadi, 2006). With increasing
taxation knowledge of society through tax education both formal and
non-formal education will have a positive impact on taxpayers consciousness
to pay taxes. Characteristics of taxpayers that represented by the condition
of cultural, social and economic will dominant forming taxpayers behavior
counseling conducted intensively and continuously will be able to increase
understanding of the taxpayer's obligation to pay taxes as a form of
national mutual cooperation in raising funds for the benefit of government
funding and national development.. Research on taxpayer perceptions of
the tax revenue performance is doing by Maria karanta, et. al (2000) in
Sweden, concluded thatthe positive public perception can affect the
behavior of the taxpayer to pay taxes that would significantly affect the
performance of the Swedish National Tax Board.
H1: Taxpayer consciousness has significant influence ontax revenue
performance.
2. Tax Service on Tax revenue performance
Tax services formed by the Human Resources (HR) dimensions, tax
regulations and Tax Information System (Suryadi,2006). Excellent service
quality standard to the community will be met if the human resources
perform their duties professionally, disciplined and transparent. In this
condition the taxpayer satisfied with the service provided to him, then they
will tend to perform the obligation to pay tax in accordance with
applicable regulations. Thus the tax information system and excellent
human resources quality will generate better tax service.
Quality services should be pursued to provide safety, comfort,
smoothness and legal certainty can be counted for (Supadmi, 2006). Nerre
to taxpayers by making the tax system and tax policy and good practice
which historically have to consider the culture of a country. Karanta, et. al
(Suryadi, 2006), emphasizes the importance of the quality of personnel
(HR) taxation in providing services to the taxpayer. All in all a good job
means that the tax authorities should be completely capable and expert on
all the expertise in their respective fields.
H2: Tax Service has significant influenceon tax revenue performance.
3. Taxpayer Compliance to Tax revenue performance
Taxpayers compliance is formed by the dimensions of the tax audit,
law enforcement and tax compensation. The purpose of inspection is to
test taxpayers compliance in implementing tax obligations. If law
enforcement can provide justice and legal certainty so taxpayers will obey,
obedient and disciplined in paying taxes. If taxpayers feel that tax
compensation already fulfill as expectations then they will pay the tax in
accordance with applicable regulations. Taxpayers compliance that
measured from tax audit, law enforcement and tax compensation
significantly influence the tax revenue performances. Nominal tax
assessment has increased tax revenue, but the increase in nominal
acceptance is not followed by a significant increase in the average ratio of
profit before tax on sales and the average tax revenue based on the ratio of
income tax to sales (Suryadi, 2006).
CHAPTER III
RESEARCH METHODOLOGY
A. Scope of Research
The study takes the research object inSouth Tangerang. Which is this
research is a causality that is research that aims to determine the relationship
and influence between two or more variables. Variables to be analyzed in this
study were independent variables taxpayer consciousness, taxservice, and the
taxpayer compliance against the dependent variable istax revenue
performance.
B. Sampling Methods
The sampling techniqueis done byconvenience samplingmethod, which is
ageneral termthat includesvariations in thelevel ofrespondent
selectionproceduresthememberpopulationsampling techniqueis based
onconveniencealone. Someonesampledby chancepeoplehadbeen
thereorinvestigatorsknow the person. This type of samplingis very
goodifusedfor researchassessment, which is thenfollowed byadvanced
researchsampletakenat random(Sugiyono, 2007:56).
Sampling method used in this study is convenience sampling is a general
term that includes a wide variety of respondent selection procedures.
Convenience sampling means that the sample units drawn easily reachable, no
C. Data Collection Methods
In this study, data collection is done by the following techniques:
1. This study used a questionnaire instrument that will be distributed to the
respondents made reference to the Likert scale models. Each of the five
alternative answers available answers given weight value as follows:
Table 3.1
Respondents Answer Score
No Respondents answer Score
1 Strongly Agree / Always 5
2 Agree / Often 4
3 Less Agree / Sometimes 3
4 Disagree / Never 2
5 Strongly Disagree / Not Ever 1
Source: Data are processed
2. Literature (Library Research), which is getting the data and information
needed during the writing of this paper were derived from literature /
relatedresource and can be thought of which are related to thesis writing
D. Method of Data Analysis
The method of data analysis is a method used to process the research data
by using the simplification of data in a form thatis easy to read and interpreted
(Ghozali, 2011:5). The method used in this study is a quantitative method.To
find out how much the level of consciousness of the taxpayer, the tax service
quality, and taxpayer compliance, variablesmeasurement tools required that is
using scale model or called Likert type format. Likert method designed to
measure the level of consciousness, service, and compliance by answering
various questions about the variables that will be tested.
Development usage of procedures which represent a bipolar continuum. At
the end of the left (a small number) represents a negative answer, while the
right end (with a large number) describing the positive.
1. QualityTest Data
In a study to obtain valid and reliable data should be tested against the
data. Instrument used for testing data are:
a. ValidityTest
The validity means that how far the precision and accuracy of a
measuring instrument in doing the measuring function. A test or
measuring instrument can be said to have a high validity when
measuring instrument doing their functions properly. Validity indicates
how farthe measuring device is able to measure what you want to
Testing the validity of the thesis is done by comparing the value of
r count and r table for the degree of freedom (df) = n-2, in this case n is
the number of samples.
b. Reliability Test
If a measurement tools has been declared valid the next step is to
measure the reliability of the tools. As a measure that shows the
consistency of the measuring instrument to measure the same
phenomenon in other occasions. Reliability tests aim to see the
consistency of a measuring instrument will be used whether the gauge
is accurate, stable, and consistent.
2. Classical Assumptions Test
In this classical assumption test that used is the normality test data,
multicollinearity, autocorrelation and heteroscedasticity.
a. MulticollinearityTest
Multicollinearity test aims to test whether the regression model found a
correlation between the independent variables (independent). A good
regression model,corelation should not happen between independent
variables (Ghozali, 2011:91). To detect the presence or absence
multicollinearity in the regression model can be seen from the amount
of the value of the Tolerance and VIF (Variance Inflation Factor). Free
regression from multicollinearity trouble if the Tolerance value> 0.10
b. HeteroscedasticityTest
Heteroscedasticity test aims to test whether in the regression model
there is unequality variance from one residual observation to other
observation. If the variance from one residual observation to another
observation is fixed, then it is called homokedastitas and if it is
different called heteroscedasticity. A good regression model is a
regression model that is homokedastitas. Detection the presence
ofheteroscedasticitycan be do by looking at whether there are a
particular pattern in scatterplot graph between the predictive value of
the dependent variable (ZPRED) with the residual (SRESID) where
the Y axis is the predicted while X is residual. If there are certain
patterns so that will indicate there has been heterokedestitas, but if
there is no clear pattern and the points spread above and below zero on
the Y axis, so it heteroscedasticity does not happen (Ghozali,
2011:105).
c. Normality test
Normality test data aims to test whether the regression model, both
independent and dependent variables, have been distributed normally.
Good regression models is regression model with normal distribution
data or near normal. To determinewhether or not the normal
distribution of the data can be detected by looking Normality
Probability Plot (P-Plot). If the data (dots) spread around the diagonal
then showed a normal distribution pattern and regression models have
met the assumptions of normality (Ghozali, 2011:149).
3. Hypothesis Testing
Hypothesis testing is done through coefficient determinant testing
Adjusted R Square (Adj R ²), F test and t test.
a. Test Adj R ²
The coefficient of determination (Adj R ²) was essentially to measure
of how far the ability of the model in explaining the variation in the
dependent variable. Adj R ² value is between zero and one. If the value
of Adj R ² ranges from almost one, then the stronger the ability of the
independent variables in explaining the dependent variable, and vice
versa if Adj R ² values closer to zero, meaning the weaker the ability of
the independent variables in explaining the dependent variable
(Ghozali, 2011:98).
a. F Test
F statistical test basically shows whether all the independent variables
included in the model have an influence together on the dependent
variable. To accept or reject a decision by comparing the error rate
0.05 (Ghozali, 2011:88). Basis for decisionmaking are as follows:
1. If the probability> 0.05 and then Ha rejected.
