The Attitudes of Tertiary Students on Tax Evasion: A Study of Tax Compliance.

?;!9C

iiDJ

.*

;f

tr

\****

,-

..

t;*

Trg

2n'

;,qr,;

:$t/!l

r

nte

rh

ai;hia

t?o

nt

r

rril

r

=

Cn

EU

SineSS,

ifl

anaE€rn(:trt

anf,,16inr.1p

iir:3

Empress

Hol,el

F

Chiqng Moi

. Thqilqnd,

2.i

Oclober

2Ol3

a

1

{..

I

..{

IU

rhe 2'? tBSM 2013 t.ternation.l Conf€rence on 8!stness, Manag€ment _.nd Accounting

2 - 4 October 2013, Chiang Ma - _rhaIand

Creation of Arts

Craft

pottery

for

Based

on

Earthenware

andLocal

(

fimbul

Rohorjo

)

Export

Commodity:

Technology

I

Tracer Study Of Faculty Of Economics

Universitas

Negeri Jakarta

(Dormo

_{Riko Sworomarindo, Achmod Fouzi,}

Dewi Nurmoldsari)

lmpact

of

ERP

in lndian

Education System

{With

Special reference

to

M.p.University}

( Prceti Singh, Rsjendru _{Singh, Gaurdv Shrivostov}

)

A

Case

Study: lmproving

Business

Cperations

at

Wongpani

Donmuang Using

Microsoft

Excel

(Suropol _{Svetsomboon, Gomon Sovotsomboon}

)

lmplementation

Of School Based

t\4anagement

(sbm) On

Vocationel

High School

ln Centralrakarta

( Case

:

Implernentation

Of Sbm,

principal Manajerial,

School

Ccmitee,

And Teacher

performance

ln

public And

Private Vocational

High School)

( Dewi Nutmolosori, yunikd

Murdaydnti,

_{Sdnti Susonti,}

Dito putuwita

)

R"-Engineering

Of

Trading process And

Re_Design For

lmplementation

Electronic process

For

Trading Companies

( _{Zohto Ghorboni Rovond, Solmon Salimi Sodr} )

ACCOUNTING

The

Attitudes

of

Tertiary

Students on Tax Evasion:

A

Study

of Tax Compliance

( _{Veroni Co.olino}

)

An Empirical

Study of

Auditor

lndependence,

Competence and

Audit Tenure

on

Audit

euality

_

Evidence

from

North

,akarta,

Indonesia

( _{Yenni Corolino}

)

lnfluential

Sourc€s and

Authors on Behavioral

Research

in

Accounting

2O03-2012:

A

Ciiatian

Analrlsis

(Ton

Ming

Kuong

)

399

476

428

429

447

452

453

454

465

:

E

I

=

ihe2'3SM201-l

_{nterx.tion.l Conf€ren.e}

of

_{5!s ne!s, [4anagemenl.rrd}

AccounirnF

4 Octobe. 2013, Ch aig rJai - Thaitarc

The

Attitudes

of

Tertiary

Students on

Tax

Evasion:

A

Study of

Tax

Compliance

Verani Carolina

Emotl: velove

n4

_ic@yohoo.com

M o ro n ot h o Ch ri sti o n I_J n iv e rs ity, I n d a n e s i o

Abstroct

rhis research oims ta exominc tuhether tox knorvtedge dnd religiousity influence an

tettiory student's non comptionce _{behoviaur ond whether there ore djft'erences}

aJ the

tertiory student's nan comptionce behoviou depends

an

the level

o|

educotion ond gender.

A

pirot

study reveoled

thot

the

demogrophic _{voriabres her.l stottsticotly} signtJicont relotionship

with

tox

evasion behoviour.

Iertiary

_students

wha

_hove

tecetved tox educatian _{ond olsa wha have not iecejved yet \rere used}

os scmples. Doto wos _{praccessed usinq ANOVA ond the result shows thot tox knawledge}

ond r:etirliousity have on impoct an tertiory student's non camptionce behoviaut, there ore differences

of _{the tertiory student,s non complionce behaviour depends on the}

level oJ educotian but do not depends on gender. fhis result _{shows the importonce of inlorno;ion and tox}

saciolizotjan in _{tndonesia, especiolly the role al religiaus} jeaders _{in tox sacicttiztng.}

Keywards: Tox _{Knowtedge, Reliqiausity, Tox Evostonond Tox ComDhon.p}

INTRODUCTION

Tax

is

the

major

source

of

revenue

in

lndonesia.

lt

becomes

a

mainstav

for

_the governrnent

to

fund

the

_{expenditLrres.}

lt

_{is showed}

by

Realization

of

lndonesian Revenue

and

Expenditure Budget 2oo7-2o12.The

tabre

berow proves

that

taxes

provide more

than

70% of domestic revenue.

Table 1. Domestic revenue in lndonesian Reven!re and Expenditure (in

biltion rupiah)

2AO7 490 988,60 706.108,30 69,53q.

2008 658.700,80 979.305,40 _61,26%

2009 679_922,2a 847.096,60 73,18';

2010 123.306,70 _{992 248,50 7 2,90"6}

2071 873.874,00 1,.205.345,70 7

2,5t't

2412 10t6 237,30 1.357.380,00 _14,86.:

Source: prepared _{by researcler Uasea on}

wwi angga-n.a"[t"r,g.;

i

,

t

I

I

I

I

i

That

is

the

reason

why

government

_enaourages

the

people

to

pay taxes.so

that

Government,

through Direcicrate

_General

of

_Taxation

(DGi),

improves

the

efficig66y 6112;

collection.However, _taxpayers

tend

to

_craim

that

_{tax is}

a

,l

;

I

i

a

I

I

t

The 2"c rBSM 2013lnternatlon; Conferenc€ on

2

9us ness, M:fagemeit and Ac.o!ni

ig

4 October 2011, Ch.ns

r.r.r

lha tani concept,

there

is a

different

opinion

within

DGT and taxpayers. DGT optimizes

the

revenlre

from tax sector continuously, while taxpayers avoid paying tax.

Tax evasion appears, especialiy, in

the

implemented

of

Self Assessment System. ln

this system, taxpayers are given

trust

fo.m

DGT

to

calculate,

to

pay, and

to

report

thelr

tax

payrnent. Hence, taxpayer's responsibllity was bigger

iit

means

the

awareness of taxpayers

to

f!lfill

thelr

obligations is

to

pay taxes). ln this way,

tax

compliance has an

impo.tant

role in the effectiveness of tax co lection in this country.

Loo

et

al.

(2009)

stated

that

tax

knowledge emerged

asthe

most

influence

in

determining individual taxpayer's comp iance behavior. Furthermore,

they

revealed that

the

major impact

of the

introduction

of

self

assessment

was

itscontribution

towards

improvement

in

the

level of tax

kno\/ledge,

which

is

tax

knowledge

itself

could

affect taxpayer's

attitudes to

taxation.

Another

research

finding

expiains

that

there

is a difference in

tax

compliance

behavior

between respondents

that

have

tax

know edge and

with

those

who do

not

have

tax knowledte

(Roshidi

et

a.,

2007;

_Kasipil

ai

et

al., 2003; palll,

_2OO5;

Carolina

&

Simanjuntak,

2011).Personaltax

compliancewill increase

when

respondents recelves

the taxation

study

for

one semester. After those study,

the

ievel

of

tax knowledge increased, so

thatthe

level

of tax

evaslondecreased

(in other words,

it

created a voiuntarV

tax compliance).

It

is interesting

to

conduct

research studles, using

tertiary

studentas

the

subjects,

about

tax

evasion

practice as

part

of

the

tax

compliance's

study.

This

researchwas

motivated by

Devos

(2005) by

expanding

the

sample selection

criteria, not

only tertiary

strrdentsin

taxation major but

also in all departments. Religiousityisa

different

demographic

variable

from the prior

study. Tax knowledge,

level

of

education, andgender

are

another demographic variables

that

used

to

predlct tax evasion practice. Thus, this study contributes ;n investigating

whether tax

knowiedge, religiousity, level

of

eciucation, and genderhave an

impaat on

tertiary

studentsbehavior

to

conduct tax evasion

practices-I-ITERATURE REVIEWAND HYPOTHESES DEVELOPMENT Tdx Knowledge

Lack

of

understanding

tax

laws

is a

factor

causing non-ccmpiiance

behavior

(Abuyamin,

2010).

ln

Self

Assessment System,

taxpayers

mLrst

actively

upg.ade their

understanding in

tax

laws,

so

thai they

can

fulfili their

obligations according

to

taxation

rules-2.

There are some concepts explained tax knowledge:

ioc

et

al.

(2009)

stated

that

tax

knowledge refers

to

a taxpayer's

ability

to

correctly

report

his

or

her taxable income, claim relief and rebates, and compute tax liabilit./.

lt

is useful e5pecialiy in terms of their confidence in handling their tax affairs,

whi.h

eventually wou!d

aflect their

compliance behaviour.

Fallan (1999) stated

that

tax knowledge combines

information

about tax rules

-455-The 2" IBSM 2013 l.ternetrona Colrfe.ence on BLr! n€ss, Manage.nent dnd Ac.oun|ng

2

4 ociober 2013, Ch .ng

M:

- Thai anci

3.

Roshidi

et

al.(2007) stated

that

understanding

tax

laws

wlll

result

a

posltive

behavior so that taxpayers wi I decrease tax evasion practices.

4.

lt is

important

to

create

a

conduslve

tax

climate.

lt

is

intangible factorbetween tax resistanceand tax compliance. Zain (2007) said

that the

lntangible

factor

w

I

change into tax compliance if these condition are met:

Tax

impact

of

Therefore,

.

Taxpayers understand (or trylng

to

understand) the tax laws.

.

Accuracy ln filling tax forms.

.

Calcu ating

the

amount of tax must be paid correctly.

.

Paying tax on tlme.

know edgeis

a

major key in Self Assessment System.

lt

is expected

to

clarify the

tax

knowledge

on tertiary

studentsbehavior

to

conduct

tax

evasion practices.

I he

f;r

I hypothesis is

to'

_eo

ds

'o

'ows:

Tax knowledgehas a

direct impact

on

tertiary

studentsbehavior

to

conduct

tax

evasion practices. H1:

Reliqiousity

Rellgioncan be

termed

as

a

moral commitment

to

act

within the

prescribed rules (Rajagukguk &SLrlistlanti, 2011).Religiousityitself

creating a

mindset

for all

individuals.

lt

is

believed

that

religiousityis a belief about good

behaviors-Maarisit

(2006)

stated

that a lot of

taxpayers eschew

from their

obllgation

to

paY

taxes,

one

reason is

the

lack

of

information,

especially

the

lack

of

role

from the

reliSious

leaders

in

tax

socializing. Previous research

found

50%

of

respondent claim

that

their

conscience

will

disturb (guilty)

if

they

pad

business activities,

overstate

medical expense,

understate income,

not

fllling

a

retL]ln,

or

claim

an

extr3 dependent

(Rajagukgtlk &

Sulistianti,2011).

It

is

expected

to

clarify

the

impact

of

religiousity on

tertiary

studentsbehavior

to

conduct tax evasion practices. Therefore,

the

second hypothesis is formed as follows:

H2: Religiousity

has

a direct impact on tertiary

studentsbehavior

to

conduct tax

evasiori practices.

Gender dnd Level

ol

Education

According

to

Jackson and

Milliron

(1986) and Failan (1999), Gender is one signlficant

faator affecting

tax

compliance

att'tude.

Past

studies

have

shown

that

females

wer€

moreresponsive

to

conscience appeal

than

sanction

threat-

Kasipillai and

labbar

(2006) also

stated

that

there are 4 general forms of non-compliance 3itirudes _"a

follows:'

1.

Not submiting

the

Annual Tax Form

within the

stipulated period or non-submisslon.

2.

Understating income.

3.

Overstatingdeductions.

'ihe _{l"'l8514 2C13 niernar on.laoiler-ance on Sus,ness,}

Mandgement.nd Account ng

7 ,.1 _{O.tober 2013, Chi.fg}

\rt:

_Thajtand

Those

items

will

be successfully

done if

taxpayers have an adequate

educaton.

So

that, it

is expected

to

clarify differences in

tertiary

students behavior

to

conduct tax evasion practices based on gender and level of education. Therefore, the

third

and

forth

hypotheses are

formed

as

fo

Iows:

H3: There are

differences

in tertiary

students behavior

to

conduct

tax

evasion

practices based on gender.

H4:

There are

differenEes

in

tertiary

students behavior

to

conduct

tax

evasion

practices based on

the

level of education.

METHODS

Resedrch Subjects and

Sofiples

Tertiary

means edLrcation

after

secondary level_

primary and

secondary

level

are

compulsory

(in

most countries)

whereas

tertlary

is

not. A

higher

education,

e.g. college,

university, is called

tertiary-

This research used

tertlary

studentsas subjects becausethey are

future potential

taxpayers.

The

population

in

this

research

is

the

stLrdents

ln

Maranatha Christian Universlty,

lndonesia.

This

research used purposlve sampling

method

to

select

the

sampe

with

the

criteria

as

follows:

1.

The,/ are both

who

have recelved tax educationand have

not

received yet.

2.

They are who was taking postgraduate proBramme :rre included in

the

sample selection.

Therefore,

every

person

who was

taking

undergraduate

or

postgraduate programmes are used as Samples.

Definition

ond Meosurement

oI

Vqtiobles

Tax compliance is usually cast in

terms

of

the

degree version relate which taxpayers

comply

with

the tax law

(lames

and

Alley,

2002).

ln ordert

to

comply

with the tax

law,

taxpayers need

tax

knowledge as

their ability

to

correctly

report

his

or

her taxable income (Loo

et

al., 2009). The major consequences

of

implemented Self Assessment S./stem is

that

taxpayers

must

always update

their

knowledge.

Thus,

tax

knowledgewas measured by

ordinal

scale.

Tertiary

studentswho have never received tax education

were

coded one (1).

Tertiary studentswho have

recei!,ed

tax

education

but

never

or

seldom

updating

tax

inform3tions were

coded

two

(2).Finally,

tertiary

studentswho have received tax education

and are always updating tax informations were coded three (3)_

When

religiousityis a belief about good behaviors and

it

js believed

that the

religious

leaders

have

an

important

role

in

creating positive behavior

on

taxaticn,

therefore

religiousity was

measured

by ordinal

scale.

Tertiary

studentswho have never gone

to

the

pla.e of worship or

did

it

4-6 times a year were coded one (1i,

within

once a month

to

cnce

a week vrere coded

two

(2), and more than once a week were

coded three

(3).

-+57-ihe

2"'

ESM :013 lnternarronalConference o,-r B!s nes!, Ntanagemefr a.d A.counr,rg

2

4 oclober 2013, Chlang

t"4;

ihrll.nd

Jackson

and Milliron

(1986)

found

ihat

between

male and

female

have

a different

way

to

conduct

their tax

obligation.

Genderwas measured

by nonrinal

scale.

Men

were

coded one (1)

dan

women were

coded

two

(2).

Flnally, Kasipillai

et

al.

(2003)

found

that

there

is an improvement

in

persona tax

compliance (decreaslng

of tax

evasion practlces)

when

someone gets an educat

on,

so

that the

level

of

educatlon was

rreasured

by

ordlnal

scale. Tertiary students in

the

undergraduate programrnes were coded one (1) and

tertiary

students in

the posttraduate

programmes were coded

two

i2).

Lyons Susan

M

in

Suandy (2011)

stated

that

tax

evaslon is

the

reduction

of tax

by

ilega

means. Some examples of

tax

avoidance schemes include locating assets in

offshore

jurlsdictlons,

delaying

repatriation

of profit

earn

in

low tax foreign

jurlsdictons,

ensuring

that

_{Bains are capital} rather than income so

the

galns are not subject

to

tax (or a subject at a

lower

rate), spreading of lncome

to

other

tax

payer

with lower

marginal

tax

rates and

taking

advantages

of tax

incentives. A seven

point

likert

scale was used

to

indicate

the

degree

of

agreement or disagreernent

of

non-compliance schemes.

Oota Collection ond Anolysis

Data was collected

by distribut ng

questlonnaires, _{'"vhich was}

adapted

from

Devos

(2005). Testing

of

the

questionnairesbegins

with

a

normality

test,

when validlty

_and

reiiabiiity

analysis were foliowing.

Kolmogorov-Smirnovtest was used

for the

test

with

hypotheses as

fo

lows: Ho:Residual data is norma 1y

distributed.

H,:Residua data is not normally

distributed.

When Asymp. sig. (2-tailed)is _higher

than

_{a pha (5%), then accept Ho(Ghozalt, 2006).}

Validity

iest

was

conducted by running

pearson

correlation. lnstruments are

valid

when

the

vaiue

of r

(correlation)

on

the

SPSS

result

are higher

than

the

value

of r

on the

product

moment

table

(with

degree

of freedom (df)

₌ n

-

2).

While

reliability

analysls was

conducted

by

running

one shot method-lntruments

are

reliable

when

Cronbach's Alphais

higher than 0,6 (Ghozall, 2006).

Data

was

proccessed _{using Analysis}

of

_{Variance (ANOVA). ANOVA}

ls

a

method

₁₍₎

examine

the

correlation between

one metric

dependent variableand

or,e

non

metric

(categorial) independent variable

or

more. The

first

and

the

second hypotheses were tested

by

two

way anova, when the

third

and the

forth

were

tested

by one way anova.

Homogeneity of variance should be

met

before runninB

the

ANOVA. Homogeneity

of

variance means dependent variables

anci

indcpendent variable (categorial)

have

a

similiarity. While

Levene's

test

of

homogeneity

of

variance is

not

siBnificant (probability

is

higher

than

alpha (596))

then the

assumptions

are

met

(Ghozalr, 2006). Acceptance

of

a I

The 2"! l85M 2013 lnternat onal conferen.e cn B!si.est, warag.F.nl and Ac.oLrni

fg

2

,1 _{Octob€. 2013, Chl.ng N., - I h.r}

;.d

lnteraction

test

is also conducted when runnlng ANOVA

It

aims

to

indicate whether

there

is an

interaction

between

the

two

independent variables

when

affectlng dependent variab e. The hypotheses

for

interactlon test are:

Ho:

theae

is

no

interaction

between

tax

knowledge

and relitlousityin

affecting

tertiary

studentsbehavlor

to

conduct tax evasion practices.

H":

there

is an

interactlon

between tax knowledBe and religiousityin affectlng

tertiary

studentsbehavior

to

conduct tax evasion practices.

When 5iB.

(2tailed)is

higher than alpha (5%), then accept H."(Ghozall, 2006).

EMPIRICAT TESTS AND RESULTS

Choracte ti st i cs of ResP on d e nts

The survey was

distributed

to

100 undergraduate economic students (management

and

accoLrnting

programme) and

48

postgraduate

econcnlic

and

psychology students at

Maranatha Christian University. Only 134 completed survey

were

received,

glving

a

response

rate

of

91%.

lt

was due

to

incompleteness in

filllng

the

survey. The

table

below

shows

the

characteristics of respondents.

Table 2. Characteristics

of

Respondents

Frequency

Per€entage

Tax knowledge

Never re.eive

tax educatlon

Never/seldom

update

Always update

tax informations

Religiousity

Never/4-6 tiines a year

once a month/a week

More than once a week Level of education

Undergraduate

82 13

39

24

9,t%

61,2%

29,1%

11,90/a

61,2%

20,9% 82

90

--

459

T'r!2"ltsSr,42011 nterndi onalConfereice on SLrs iess, \ranatamenr.no A.count ng

2 _{-:1 O.rober 2013, Ch a.g}

Mar

_{lha t.nd}

Normolity

fest

The tab e

cende r Ma le

Norr.alParameters"

51 fa,1%

61,9%

beiow shows

the

result of normality test.

Table 3. One-Sample (olmoeorov-Smirnov Test

5td Deviat

of

Neg.tive

134 3 463E .73950 .046 .046

- 033 .536 .936

(olmogorov _{Smirnov Z}

Asymp. SlC. (2 tarled)

a. Test d nribution is Normat.

Kolmogorov-Smirnov

test

shows

that

Asym p. Sig. (2-toited)is _{0,936. When}

the

_value

is higher than 5%,then accept H0. Thus,it means

that the

data is norn,ally distributed.

Volidity

Test

The

value

ol

r

on

the

product

moment

table,

with

degree

of

freedom132, is 0,17.

While

the

value of

/

(correlation) _on

the

SPSS resLrlt are summarized by

the

table below. This

table shows

that the

instrument is defined valid.

Table 4.

Validity

Results

0,171

4,11

4,21,4 3 4,135

0,218

5 4,231,

6 0,762

7 o,l56

8 0,644

9 c,684

10 0 490 11 0,364

\2

0,348 [image:9.595.174.486.57.390.2] [image:9.595.179.421.209.388.2]

The 2

'

.BSM 2013 lnternai o.al Conferen.e on Bus.est, Man.gement ard Ac.ountinB

2

-

1 October 2013, ChlanB

Mai

Tha lrnd

Relidbility

Test

The result

of

reliability test shows by the table below.

Table 5. Reliability Statistics

The ta ble below shows

the

result ofhomogeneity of variance test.

Tabl€ 6. Levene's Test of tquality of Eror variancesa

li

lorr

Ft

--lt,r.

I

],o-o \t

o,

loes

l

a. Design: lntercept+ TK + R +TK * R

Levene's

test

of

hornogeneity

of

va.iance is 0,068, higher

than

5%. Thus,

it

means

the

assumptions of homogenelty are met.

Cronbach's Alphais 0,734, which is higher than 0,6. Thus, the instrument is reliable Homogeneity

of

Voridnce Test

Two-wdy ANOVA ond

lnteroction

Test

The result

of the first

and

the

second hypotheses

testing are shown by

the

table below.

.134

Table 7. Tests of setween-Subjects Effects Type lll

of 5lc.

41.49A' 6 7.915 39.822 .000

319 488 7 319.483 1607E 000

T( 3.987

)

10.031 000 4.276 2 2.138 1,O.7 51 .000

1.390 945 010

Error 25.243 \27 .199 1680 445

Corrected

Tota

7 2.7 33 133

a. R Squared =,6s3 (Adiusted RSquared _=,637)

[image:10.595.189.406.130.168.2] [image:10.595.60.526.475.789.2]

-46i-From

the

table

_{above, signlficant va Lte}

for tax

kno\/ledge

_{is O,OO0,}

which

is

ower

than 5%,

it

means tax knowledgehas a direct impact on

ter|ary

studentsbehavlor

to

conduat tax _{evasion practices. Llkewise significant value}

for

_{religlousity is O,OOO,}

it

_means

religiouslty

has a dlrect lmpact on

tertiary

studentsbehavior

to

conduct tax evaslon practjces. Significant

va ue

for

interaction

between

tax

_{knowledge and}

rellgiousity

_{ls also}

lower than

_{S%, O,O1O,}

then

t

can

be

concluded

that

there

is

an

interactlon between

tax

knowlecige

ancl

re iglousityin affecting

tertiary

_{studentsbehavior to conduct tax evasion practices.}

The result of this research confirms

that

tax knowledge and rellgiouslty has a

dlrect

rmpact

on

tertiary

studentsbehavior

to

_conduct

tax

_{evasion practices}

and

_consistent

with

prevlous research

from

Kasipillai

et

at.

(2003),palit(2005), Roshtdi

et

at.(2007),Carotina & Simanjuntak (2011), Rajagukguk & Sulistianti (2011).

One'wdy ANOVA

The

2"

_{BSM 2013 nternatloni Conferpnce on 6uslness, lUanage.r.ent .nd A..ouni .g}

2

4 october 2013, ch.nE

M.i

Tharlard

Table 8 and 9 below _show

the

_{ANOVA results}

for the

third

_and

the

forth

hyp.theses

testing

.556

72.\17

7 2133

1.017 .315

Table 9. One-way ANOVA

of 5ig.

2.r94 1 2.194 4.106 .045

Within

132

12.733 133

Table 8 shows

the

result

for

the

third

hypothesis. SiBnificant value is 0,315

which

is

hiSher

than

s%then

it

can

be

conciuded

that there

are

no differences in

tertiary

students oehavior

to

conduct

tax

evasion practices based

on

gender. Whereas, significant value

for

the

forth

hypothesis

in

tai-.le

9

is

0,045,

\r.,hich

is lower than

5%,

it

means

there

are

differences in

tertiary

students behavior

to

condLtct

tax

evasion practices based cn

the

level of education.

Table 8. one-way ANOVA

[image:11.595.176.423.337.635.2]

The 2^d lSsM 2013 irternatrona conferen.e onB!s ness, Il.nagemerl: rd

A.co!ii

r1g

4 October 2013, Ch

.rg

Mar- Trr:L and

The result of

this

research confirms

that

there are no differences in

tertiary

students

behavior

to

conduct tax

evasion practices based

on

gender and inconsistent

with

previous research

from.lackson

and

Milliron

(1986) and Fal an (1999). But,

this

research is consistent

wth

Kaslplllai

and

labbar

(2006)

who stated

that

tax

compliance bahavior between male and female are

the

same. The result of

this

research also confirmsthat there are differences

in

tertiary students behavior

to

conduct

tax

evasion practlces based

on

the

level

of

educatlon and consistent

with

Devos (2005).

coNcLUSlONS

The purpose of

this

research is

to

find

empirical evidence about

the

influence of tax

knowiedge

and

reliSiousity

on

tertiary

studentsbehavior

to

conduct

tax

evasion

practlces.Thls

research also

examines

whether there

are differences

in tertiary

students behavior

to

conduct tax evasion practices based on Senderand leve! of education'

There are several

finding

in

this

study

FirstlY,

tax

knowledgehas a

dire't

lmpact on

tertiary

studentsbehavior

to

conduct tax evasion practices This result is consistent

wth

the

theorltical framework.

lt

is

important

to

maintain tax know edge as

part

of Self Assessrrent System, so

that

taxpayers can combine

information

about tax rules with financlal knowledge

to

compute

their

tax

liability

correctly.

To

maintain

their tax

knowledge, taxpayers should

updatethrough senrinar

of

taxation, etc. Hutagaol (2007) stated

that

tax counseling aims

to

spread

the information

of taxation so

that

taxpayers understand and are capable to condLlct

their

dutles according to

the

regulations.

Seconcilv, religiousityhas a direct impact on

tertiary

studentsbehavior

to

conduct

tax

evasion practices-This

result

is consistent

with the theoritical

framework

ReliSiousity wrll

lmpact taxpayers' behavior throuSh guilty feeling.

lt

is believed

that when

taxpayerswill

conduct

the

praciice

of tax

evasion,

their

consc!ence are

disiurbed

so

that

they

repeal

it

Burton (2009) stated

that

seminary

and workshop

are

the

most dinamic

strategyin

spreading

the

importance

of tax,

and

it

can be conducted

by anyone ln this term,

the religious leaders are

the

main key for

this-Thirdly, gender

makes

no

difference

in tertiary

students

behavior

to

conduct tax

evasion practices.

lt

is obvious,

both

male and female taxpayers have similiar

attitudc

and

perceptions

towards

the

lndonesian

tax

system. Finally,

there are

differences

in tertiary

students behavior

to

conduct

tax

evasion practices based

on

the

level

of

education- The

formal tax education

can Sive

a

positive behavior, so

that

collaboration

between DGT and

educational

institution

can be used

for

improvement of voluntary tax compliance

The result

of this

stuciy cannot be generalized, because

of

llmitation

of

the

research

area.

The

next

research

also

needs another operational variabies

or

use

another

demographia variables

to

predict compliance behavior'

-The

2'"

85Nr 2C-rj inter..tlonalCcnieren.€.n B!srncst, i\4a..gem!nt al-]d A.coLrnrtng

2

4 Odober 2013, Ch

ris

1,,'lai

Ihrl

and

R€ FE R ENCES

Abuya min, _{Oyok \207A), Perpojokon Pusot} & Doeroh, Humaniora, Ba ndunB.

Burtoo, _{Richard (2009), Kojion Aktuo} I Perpojokor, Salemba Empat, lakarta.

Caro

ina,

V.

and

Simanjuntak,

T.

H.

(20f1),

"Pengaruh

Tax

Knowledge

dan

Persepsi Tax Fairness terhadap Tax Compliance

Wajib

Pajak Badan yang

Terdaftar

di

KPP Madya BanduNg", Prosiding

Seminor Nosionol: Problemotiko Hukum

dolom

lmplementosi

Bisnis don lnvestosi (Perspektif Multidisipliner), pp- 205-215.

Departemen _{Keuan8an Republik lndonesia {2013),} "Data Pokok APBN 2007 2013", availabie

at www.anggaran.depkeu.go.ld (accessed 24 April 2013).

Devos, Ken (2005), "The

Attitudes

of Tertiary Students on Tax Evasion and

the

Penalties

for

Tax Evasion

-

A Pilot Study and Demograph c _{Analysis" ,} e Journol

al

Tox Reseorch, Vol.3 No.2,

pp.222

273.

Fallan, Lars (1999), "Gender, Exposure to Tax KnowledBe and AttitLrdes towards Taxation: An

Experimenta

l\prroach", ioutnol

of Business Ethics,Vol-18 No.2, pp. 173-184.

Ghozali,

lmam

\2A06),

Anolisis

Multivoriote Denqon Prcqrom

5P55,

Badan

Penerbit

Unive15itas Dipenogoro, Semarang.

tutagaol,

John 12007), Perpoiokdn: tsu-isu Kontemporer, Graha llmu, YogVakarta.

Jackson, B. R. and Mll iron, V. C. (1986), "Tax compliance research: Findlngs, prc,blems, and ptospecls" _{, Journal} o; Accaunting Literature, Vol.5, pp.

125-165-James,

Simon

and

Aley,

Clinton {2002), "Tax

Compliance,

Self Assessment

and

Tax

Adnrinistration",

./ournol of Finonce ond Monogement in public

service,vol.2

No.2, pp.

2l

42.

Kasipillai,

J.,

Arpin,

N.,

and

Amran,

N. A.

(2003),

"The

tnfluence

Of

EdLlcation

On

Tax Avoidance And Tax Evasion", eJournol

of

Tox Reseor'.h, Vol.1 No.2, pp- 134 146.

Kasipillal,

l.

and Jabbar, H. A. (2006), "Gender and Ethnicity Differencei ln TaxCompliance'', Asion Acodemy ol Monogement Jautnol,V o1.11 No.2, pp. 73 88.

Loo, E. C-, MarBaret, M., and Ann, H. (2009), "Understanding The Compliance Behaviour

of

Ma

aysian lndividual

Taxpayers Using

A

Mixed Method

Approach",

Journol

of

the Austrolosion Tox Teochers Associotion, V ol.4 No.1, pp. 181,202.

Maarisit,

M.

L- 1,2006]/, _Pojok

Menurut

_Tealogi

Krlst€r, lembaga

_Penerbit

taku]tas

_Ekonomi

U niversitas _{lndonesia, iakarta.}

Palil,

M.

R. (2005), "Taxpayers Knowledge:

A

Descriptive Evidence On Demographic Factors

ln Malaysia", Jurnol Akuntonsi don Keuongon,Voi.T

tlo.1,

pp. 11 21.

Raja8ukguk, S.

M.

and

5ulistianti,

F. (2011), "Religiousity Over Law and Tax Compliance",

Prosiding

Seminor Nosionol: Prcblemotiko

Hukum dolom

lmplementosi Bisnis

don

I n ve sto si ( P e rs

pektii

M u ltid isi pl i net _), pp. 276-222.

Roshidi,

M.

A.,

Mustafa, H.

and

Asri,

M.

(2007),

"The

Effects

Of (nowledge On

Tax

Compliance

Behaviours

Arnong

Malaysian Taxpayers",

lntetnotianol

Cont'erence on Business ond lnfarmotion 4 (1.1).

Suandy, Erly {2011), Perenconoon Pojok,Salemba Empat, iakarta