Proceedings of the 1st International Conference on Environmental Governance, ICONEG 2019, 25-26 October 2019, Makassar, South Sulawesi, Indonesia

Research Article

Could tax compliance be increased? Measuring tax morale role in increasing tax compliance as a kind of strategy of sustainable future for human security from tax revenue

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  • @INPROCEEDINGS{10.4108/eai.25-10-2019.2300499,
        author={Abdul  Rahman},
        title={Could tax compliance be increased? Measuring tax morale role in increasing tax compliance as a kind of strategy of sustainable future for human security from tax revenue},
        proceedings={Proceedings of the 1st International Conference on Environmental Governance, ICONEG 2019, 25-26 October 2019, Makassar, South Sulawesi, Indonesia},
        publisher={EAI},
        proceedings_a={ICONEG},
        year={2020},
        month={10},
        keywords={tax compliance mtas tax sanction tax service tax morale sustainable future human security},
        doi={10.4108/eai.25-10-2019.2300499}
    }
    
  • Abdul Rahman
    Year: 2020
    Could tax compliance be increased? Measuring tax morale role in increasing tax compliance as a kind of strategy of sustainable future for human security from tax revenue
    ICONEG
    EAI
    DOI: 10.4108/eai.25-10-2019.2300499
Abdul Rahman1,*
  • 1: STIA LAN Bandung
*Contact email: rhnoke@gmail.com

Abstract

Research regarding the tax reform worldwide proves the role of modern tax administration system (MTAS), tax sanction, tax service, and tax morale as elements of reform. Theoretically, tax compliance is influenced by economic and non-economic factors, in which, in the end, these factors lead to the same point with these elements. It means that the spirit of tax reforms worldwide is undertaken to improve tax compliance and to prevent tax non-compliance. The non-compliance is a major problem of countries imposing taxes on their society. It may be true that tax morale is an important factor behind this problem. Therefore, I am interested in measuring the tax morale role as a mediator in improving tax compliance. Study conducted in Indonesia toward 400 taxpayers who are employed in the public sectors through a survey method with a questionnaire as a tool to collect data. As a result, the existence of tax morale succeeded to increase the effect of MTAS on tax compliance. This study revealed the important role of tax morale as a mediator in enhancing tax compliance. This study recommends that the programs to increase tax compliance should be started from the tax morale. This is because improvements in this side will facilitate the government in achieving voluntary compliance in paying taxes so that a sustainable future for human security from the tax sector can be attained.