Factors Contributing to Low Taxpayer Compliance

Oct 13, 2025 by talynt.org 24 views

Introduction

Tax is the primary source of state revenue, contributing significantly to national income. In the Self Assessment system, taxpayers are expected to fulfill their tax obligations independently, including reporting the Annual Return (SPT). The Annual SPT plays a crucial role in monitoring reported tax revenues. Therefore, efforts are needed to increase taxpayer compliance in reporting annual tax returns to maximize tax revenue.

In this study, we aim to determine the level of compliance of individual taxpayers in reporting the Annual Tax Return at the Lubuk Pakam Primary Tax Service Office. Additionally, this research seeks to identify the factors that cause low taxpayer compliance in reporting annual tax returns and the efforts made by the Lubuk Pakam Primary Tax Service Office to increase compliance.

Methodology

This study employed a qualitative descriptive method, where researchers analyzed data by describing or explaining the data collected directly. The results showed that the level of compliance of individual taxpayers in reporting annual tax returns at the Lubuk Pakam Primary Tax Service Office in 2018 to 2022 was 77%, 74%, 58%, 57%, and 60%. These figures indicate significant fluctuations every year, with the category of taxpayers who are classified as less compliant.

Factors Contributing to Low Taxpayer Compliance

The low level of compliance is caused by several factors. On the taxpayer side, the lack of knowledge and understanding of taxation and limitations in the use of internet technology is the main cause. In addition, technical obstacles such as network disorders also contribute to the low compliance. On the other hand, the factors of tax employees include technical obstacles, errors in the proof of cutting from the employer, as well as lack of human resources (HR) at the Tax Service Office.

Efforts to Increase Compliance

To increase compliance with the annual tax return reporting, the Lubuk Pakam Primary Tax Service Office made various efforts, including through socialization of taxation, providing counseling in the field, and applying sanctions for taxpayers who did not meet their obligations. This effort is expected to increase the awareness and understanding of taxpayers, so that they are better able to report the annual SPT in a timely manner.

Importance of Increasing Taxpayer Compliance

Increasing taxpayer compliance in reporting annual tax returns is very important to increase state revenue. By understanding the factors that influence compliance and making appropriate efforts, it is expected that the level of taxpayer compliance at the Lubuk Pakam Primary Tax Service Office can continue to increase in the coming years.

Conclusion

In conclusion, this study highlights the importance of increasing taxpayer compliance in reporting annual tax returns. The findings of this study suggest that the level of compliance of individual taxpayers in reporting annual tax returns at the Lubuk Pakam Primary Tax Service Office is influenced by several factors, including the lack of knowledge and understanding of taxation, technical obstacles, and errors in the proof of cutting from the employer. To address these issues, the Lubuk Pakam Primary Tax Service Office has made various efforts, including socialization of taxation, providing counseling in the field, and applying sanctions for taxpayers who did not meet their obligations.

Recommendations

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

The Lubuk Pakam Primary Tax Service Office should continue to provide socialization of taxation and counseling in the field to increase the awareness and understanding of taxpayers.
The Tax Service Office should improve its technical infrastructure to minimize technical obstacles and errors in the proof of cutting from the employer.
The Tax Service Office should increase its human resources to handle the increasing number of taxpayers and to provide better services to taxpayers.

Limitations of the Study

This study has several limitations, including:

The study only focused on the Lubuk Pakam Primary Tax Service Office and did not include other tax service offices in the study.
The study only analyzed the data from 2018 to 2022 and did not include data from previous years.
The study only focused on the factors that influence compliance and did not include other factors that may influence compliance.

Future Research Directions

Future research should focus on the following areas:

Conducting a study on the factors that influence compliance in other tax service offices.
Analyzing the data from previous years to identify trends and patterns in taxpayer compliance.
Conducting a study on the effectiveness of the efforts made by the Lubuk Pakam Primary Tax Service Office to increase compliance.

Conclusion

Q: What is taxpayer compliance?

A: Taxpayer compliance refers to the ability of taxpayers to fulfill their tax obligations, including reporting the Annual Return (SPT) and paying taxes on time.

Q: Why is taxpayer compliance important?

A: Taxpayer compliance is important because it helps to increase state revenue, which is essential for funding public services and infrastructure. Additionally, compliance helps to ensure that taxpayers are held accountable for their tax obligations and that the tax system is fair and equitable.

Q: What are the factors that influence taxpayer compliance?

A: The factors that influence taxpayer compliance include:

Lack of knowledge and understanding of taxation
Technical obstacles, such as network disorders
Errors in the proof of cutting from the employer
Lack of human resources (HR) at the Tax Service Office
Other factors, such as taxpayer attitude and behavior

Q: What efforts can be made to increase taxpayer compliance?

A: Efforts to increase taxpayer compliance can include:

Socialization of taxation
Providing counseling in the field
Applying sanctions for taxpayers who do not meet their obligations
Improving technical infrastructure to minimize technical obstacles
Increasing human resources to handle the increasing number of taxpayers

Q: What are the benefits of increasing taxpayer compliance?

A: The benefits of increasing taxpayer compliance include:

Increased state revenue
Improved fairness and equity in the tax system
Reduced tax evasion and avoidance
Improved taxpayer attitude and behavior
Increased trust and confidence in the tax system

Q: What are the challenges of increasing taxpayer compliance?

A: The challenges of increasing taxpayer compliance include:

Lack of knowledge and understanding of taxation among taxpayers
Technical obstacles, such as network disorders
Errors in the proof of cutting from the employer
Lack of human resources (HR) at the Tax Service Office
Other factors, such as taxpayer attitude and behavior

Q: How can taxpayers improve their compliance with tax obligations?

A: Taxpayers can improve their compliance with tax obligations by:

Seeking guidance from tax professionals or the Tax Service Office
Staying informed about tax laws and regulations
Keeping accurate and complete records of tax-related transactions
Paying taxes on time
Seeking help if they are experiencing difficulties with tax compliance

Q: What are the consequences of non-compliance with tax obligations?

A: The consequences of non-compliance with tax obligations can include:

Penalties and fines
Interest on unpaid taxes
Loss of tax benefits and deductions
Damage to credit rating and reputation
Other consequences, such as legal action and imprisonment

Q: How can taxpayers report tax-related issues or concerns?

A: Taxpayers can report tax-related issues or concerns by:

Contacting the Tax Service Office directly
Seeking guidance from tax professionals or the Tax Service Office
Filing a complaint with the relevant authorities
Seeking help from a tax ombudsman or advocate
Other methods, such as online reporting or social media.