Proceedings of the 1st International Symposium on Indonesian Politics, SIP 2019, 26-27 June 2019, Central Java, Indonesia

Research Article

Tax Administration Reform: Impact of Taxpayers’ Trust and Power of Tax Authority on Taxpayer Compliance

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  • @INPROCEEDINGS{10.4108/eai.25-6-2019.2287972,
        author={Davin  Andika and Milla Sepliana Setyowati},
        title={Tax Administration Reform: Impact of Taxpayers’ Trust and Power of Tax Authority on Taxpayer Compliance},
        proceedings={Proceedings of the 1st International Symposium on Indonesian Politics, SIP 2019, 26-27 June 2019, Central Java, Indonesia},
        publisher={EAI},
        proceedings_a={ISIP},
        year={2019},
        month={9},
        keywords={tax compliance taxpayer trust power of authority},
        doi={10.4108/eai.25-6-2019.2287972}
    }
    
  • Davin Andika
    Milla Sepliana Setyowati
    Year: 2019
    Tax Administration Reform: Impact of Taxpayers’ Trust and Power of Tax Authority on Taxpayer Compliance
    ISIP
    EAI
    DOI: 10.4108/eai.25-6-2019.2287972
Davin Andika1,*, Milla Sepliana Setyowati1
  • 1: Faculty of Administrative Sciences, Universitas Indonesia, Depok, West Java, Indonesia
*Contact email: davinandika15@gmail.com

Abstract

Referring to slippery framework, taxpayer compliance can be measured using taxpayer trust and power of tax authority in order to obtain comprehensive output. This research is addressed to analyze taxpayer’s trust and power of tax authority of Large Tax Office Two as well as analyzing the impact of taxpayer’s trust and power of tax authority towards taxpayer compliance. The research employs mixed methods approach. In quantitative side, this research collected data from questionnaire and is processed using descriptive statistics, regression, and coefficient determination tests. In qualitative side, this research collected the data from interview and was processed for triangulation objective and enriching output obtained from quantitative approach. This research revealed that taxpayer’s trust and power of tax authority lie on different level and performed significant impact on taxpayer compliance by 57.2% in Large Tax Office Two. It is suggested that Large Tax Office Two needed to control its authority and power to prevent it from being either weak or arrogant