Difficulty in understanding tax obligations

Oct 13, 2025 by talynt.org 13 views

The Level of Taxpayer Compliance in Restaurant Tax Payments at the Medan City Tax and Retribution Management Agency

The Medan City Tax and Retribution Management Agency (BPPRD) plays a crucial role in collecting taxes from various sectors, including restaurants. In an effort to understand the level of compliance with restaurant taxpayers, this research focuses on the Medan City BPPRD. The objective of this study is to analyze the level of taxpayer compliance in restaurant tax payments at the Medan City BPPRD and to identify the obstacles and challenges faced by the agency in collecting taxes from restaurant taxpayers.

The Medan City BPPRD has been collecting taxes from restaurant taxpayers since 2014. According to the data collected from the Medan City BPPRD, the number of restaurant taxpayers and revenues continues to increase every year between 2014 and 2017. This increase indicates that the level of compliance of restaurant taxpayers in the Medan City BPPRD is classified as good. However, despite the positive trend in restaurant tax compliance, there are various obstacles in the tax collection process that need to be addressed.

This study uses a qualitative approach to analyze the level of taxpayer compliance in restaurant tax payments at the Medan City BPPRD. The data was collected through interviews with restaurant taxpayers and officials from the Medan City BPPRD. The study also analyzed the tax collection data from the Medan City BPPRD to identify the trends and patterns in restaurant tax compliance.

The results of this study show that the level of compliance with restaurant taxpayers in Medan is good enough. However, there are still room for improvement. The study identified various obstacles in the tax collection process, including:

Difficulty in understanding tax obligations: Some restaurant taxpayers may have difficulty in understanding their tax obligations, which can lead to non-compliance.
Challenges in law enforcement: The Medan City BPPRD may face challenges in law enforcement, which can make it difficult to collect taxes from restaurant taxpayers.
Ineffective tax collection strategies: The Medan City BPPRD may not have effective tax collection strategies in place, which can lead to low tax revenue rates.

The results of this study have several implications for the Medan City BPPRD. Firstly, the agency needs to continue to innovate and overcome the various challenges that exist in order to increase compliance and tax revenue. Secondly, the agency needs to improve its tax collection strategies to ensure that high tax revenue can contribute to Regional Original Revenue (PAD). Finally, the agency needs to educate restaurant taxpayers on their tax obligations to ensure that they comply with the tax laws.

In conclusion, this research shows that although the level of compliance with restaurant taxpayers in Medan is good enough, there is still room for improvement. The Medan City BPPRD needs to continue to innovate and overcome the various challenges that exist in order to increase compliance and tax revenue. The positive results of this study are expected to be a reference for the development of better and sustainable taxation policies in the future.

Based on the results of this study, the following recommendations are made:

Improve tax collection strategies: The Medan City BPPRD needs to improve its tax collection strategies to ensure that high tax revenue can contribute to Regional Original Revenue (PAD).
Educate restaurant taxpayers: The Medan City BPPRD needs to educate restaurant taxpayers on their tax obligations to ensure that they comply with the tax laws.
Increase transparency and accountability: The Medan City BPPRD needs to increase transparency and accountability in its tax collection process to ensure that taxpayers have confidence in the system.

This study has several limitations. Firstly, the study only analyzed the level of compliance with restaurant taxpayers in Medan and did not consider other sectors. Secondly, the study only collected data from the Medan City BPPRD and did not consider other tax collection agencies. Finally, the study only analyzed the tax collection data from 2014 to 2017 and did not consider other years.

This study has several future research directions. Firstly, the study can be replicated in other cities to compare the level of compliance with restaurant taxpayers. Secondly, the study can be extended to other sectors to analyze the level of compliance with taxpayers. Finally, the study can be used as a reference for the development of better and sustainable taxation policies in the future.

[1] BPPRD (2018). Annual Report 2017.
[2] Ministry of Finance (2018). Taxation Policy in Indonesia.
[3] World Bank (2018). Taxation in Indonesia.

The appendix includes the following:

Interview schedule: The interview schedule used to collect data from restaurant taxpayers and officials from the Medan City BPPRD.
Tax collection data: The tax collection data from the Medan City BPPRD used to analyze the level of compliance with restaurant taxpayers.
Tax laws and regulations: The tax laws and regulations in Indonesia used to analyze the level of compliance with restaurant taxpayers.
Frequently Asked Questions (FAQs) about Taxpayer Compliance in Restaurant Tax Payments at the Medan City Tax and Retribution Management Agency

A: The level of taxpayer compliance in restaurant tax payments at the Medan City Tax and Retribution Management Agency is classified as good. The number of restaurant taxpayers and revenues continues to increase every year between 2014 and 2017.

A: The obstacles in the tax collection process include:

Difficulty in understanding tax obligations: Some restaurant taxpayers may have difficulty in understanding their tax obligations, which can lead to non-compliance.
Challenges in law enforcement: The Medan City Tax and Retribution Management Agency may face challenges in law enforcement, which can make it difficult to collect taxes from restaurant taxpayers.
Ineffective tax collection strategies: The Medan City Tax and Retribution Management Agency may not have effective tax collection strategies in place, which can lead to low tax revenue rates.

A: The Medan City Tax and Retribution Management Agency can improve taxpayer compliance by:

Improving tax collection strategies: The agency needs to improve its tax collection strategies to ensure that high tax revenue can contribute to Regional Original Revenue (PAD).
Educating restaurant taxpayers: The agency needs to educate restaurant taxpayers on their tax obligations to ensure that they comply with the tax laws.
Increasing transparency and accountability: The agency needs to increase transparency and accountability in its tax collection process to ensure that taxpayers have confidence in the system.

A: The benefits of improving taxpayer compliance include:

Increased tax revenue: Improving taxpayer compliance can lead to increased tax revenue, which can contribute to Regional Original Revenue (PAD).
Improved public services: The increased tax revenue can be used to improve public services, such as education, healthcare, and infrastructure.
Increased confidence in the tax system: Improving taxpayer compliance can increase confidence in the tax system, which can lead to increased compliance and reduced tax evasion.

A: Restaurant taxpayers can ensure compliance with tax laws by:

Understanding their tax obligations: Restaurant taxpayers need to understand their tax obligations to ensure that they comply with the tax laws.
Keeping accurate records: Restaurant taxpayers need to keep accurate records of their income and expenses to ensure that they comply with the tax laws.
Seeking professional advice: Restaurant taxpayers can seek professional advice from tax consultants or accountants to ensure that they comply with the tax laws.

A: The consequences of non-compliance with tax laws include:

Fines and penalties: Restaurant taxpayers who fail to comply with tax laws may be subject to fines and penalties.
Loss of business license: Restaurant taxpayers who fail to comply with tax laws may lose their business license.
Damage to reputation: Restaurant taxpayers who fail to comply with tax laws may damage their reputation and lose customer trust.

A: The Medan City Tax and Retribution Management Agency can improve its tax collection process by:

Implementing effective tax collection strategies: The agency needs to implement effective tax collection strategies to ensure that high tax revenue can contribute to Regional Original Revenue (PAD).
Increasing transparency and accountability: The agency needs to increase transparency and accountability in its tax collection process to ensure that taxpayers have confidence in the system.
Providing education and training: The agency needs to provide education and training to taxpayers on their tax obligations to ensure that they comply with the tax laws.