Probability of Fraud Detection

Oct 13, 2025 by talynt.org 2 views

Factors Affecting Taxpayer's Perception of Tax Evasion Ethics: Empirical Study at KPP Pratama Binjai

Introduction

Tax evasion is a significant issue in many countries, including Indonesia. It not only affects the government's revenue but also undermines the trust of taxpayers in the tax system. Understanding the factors that influence taxpayers' perception of tax evasion ethics is crucial in developing effective strategies to prevent tax evasion. This study aims to investigate the effect of various factors on taxpayers' perception of tax evasion ethics in Indonesia, specifically at KPP Pratama Binjai.

Methodology

This study employed a quantitative approach using a survey method to collect data from 50 taxpayers registered at KPP Pratama Binjai. The sampling technique used was convenience sampling, where questionnaires were distributed to taxpayers who met the specified criteria. The analysis method used in this study was multiple linear regression.

Factors Affecting Taxpayer's Perception of Tax Evasion Ethics

Tax Audit Intensity

The intensity of tax audits has a significant negative effect on taxpayers' perception of tax evasion ethics. This suggests that the more frequent taxpayers are audited, the lower their perception of the ethics of tax evasion. A possible explanation for this finding is that taxpayers who are frequently audited are more likely to be aware of the risks associated with tax evasion and are therefore less likely to engage in such behavior.

Tax Compliance

Tax compliance also has a significant negative influence on taxpayers' perception of tax evasion ethics. The higher the level of tax compliance, the lower their perception of the ethics of tax evasion. This finding suggests that taxpayers who comply with their tax obligations tend to view tax evasion as an unethical action. This is consistent with the idea that taxpayers who are committed to paying their taxes honestly are more likely to have a strong sense of moral obligation to do so.

Taxation Knowledge

Taxation knowledge also has a significant negative influence on taxpayers' perception of tax evasion ethics. The higher the taxpayer's knowledge about taxation, the lower their perception of the ethics of tax evasion. This finding suggests that a better understanding of tax regulations can increase the awareness and commitment of taxpayers to pay taxes honestly. This is consistent with the idea that education and awareness are key factors in promoting tax compliance.

Taxation System

The results of this study indicate that the taxation system also has a significant negative influence on taxpayers' perception of tax evasion ethics. The better and fairer the taxation system, the lower their perception of the ethics of tax evasion. This finding suggests that a transparent, efficient, and fair taxation system can increase the confidence of taxpayers and encourage their compliance with tax obligations.

Probability of Fraud Detection

The probability of fraud detection also has a significant negative influence on taxpayers' perception of tax evasion ethics. The higher the probability of fraud detection, the lower their perception of the ethics of tax evasion. This finding suggests that the greater the risk of being caught due to tax evasion, the lower the taxpayer's desire to engage in such behavior.

Conclusion

This study shows that there are several factors that significantly affect taxpayers' perception of tax evasion ethics. These factors include tax audit intensity, tax compliance, taxation knowledge, taxation system, and probability of fraud detection. The findings of this study suggest that efforts need to be made to improve the quality of tax audits, increase the level of tax compliance, increase tax taxpayer knowledge, improve taxation systems, and increase the probability of fraud detection. By making these efforts, it is expected that the perception of taxpayers on tax evasion ethics will be lower and tax compliance in Indonesia will increase.

Recommendations

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

Improve the quality of tax audits: Tax authorities should strive to improve the quality of tax audits to increase the effectiveness of tax enforcement.
Increase tax compliance: Tax authorities should implement policies and programs to increase tax compliance, such as providing education and awareness programs for taxpayers.
Increase tax taxpayer knowledge: Tax authorities should provide education and awareness programs for taxpayers to increase their knowledge about taxation.
Improve taxation systems: Tax authorities should strive to improve taxation systems to increase the confidence of taxpayers and encourage their compliance with tax obligations.
Increase the probability of fraud detection: Tax authorities should implement policies and programs to increase the probability of fraud detection, such as using advanced technology to detect tax evasion.

By implementing these recommendations, it is expected that the perception of taxpayers on tax evasion ethics will be lower and tax compliance in Indonesia will increase.
Frequently Asked Questions (FAQs) about Factors Affecting Taxpayer's Perception of Tax Evasion Ethics

Q: What is tax evasion, and why is it a significant issue?

A: Tax evasion is the act of intentionally avoiding or underpaying taxes owed to the government. It is a significant issue because it undermines the trust of taxpayers in the tax system and affects the government's revenue.

Q: What are the factors that affect taxpayers' perception of tax evasion ethics?

A: The factors that affect taxpayers' perception of tax evasion ethics include tax audit intensity, tax compliance, taxation knowledge, taxation system, and probability of fraud detection.

Q: How does tax audit intensity affect taxpayers' perception of tax evasion ethics?

A: Tax audit intensity has a significant negative effect on taxpayers' perception of tax evasion ethics. The more frequent taxpayers are audited, the lower their perception of the ethics of tax evasion.

Q: How does tax compliance affect taxpayers' perception of tax evasion ethics?

A: Tax compliance has a significant negative influence on taxpayers' perception of tax evasion ethics. The higher the level of tax compliance, the lower their perception of the ethics of tax evasion.

Q: How does taxation knowledge affect taxpayers' perception of tax evasion ethics?

A: Taxation knowledge has a significant negative influence on taxpayers' perception of tax evasion ethics. The higher the taxpayer's knowledge about taxation, the lower their perception of the ethics of tax evasion.

Q: How does the taxation system affect taxpayers' perception of tax evasion ethics?

A: The taxation system has a significant negative influence on taxpayers' perception of tax evasion ethics. The better and fairer the taxation system, the lower their perception of the ethics of tax evasion.

Q: How does the probability of fraud detection affect taxpayers' perception of tax evasion ethics?

A: The probability of fraud detection has a significant negative influence on taxpayers' perception of tax evasion ethics. The higher the probability of fraud detection, the lower their perception of the ethics of tax evasion.

Q: What are the implications of this study for tax authorities?

A: The findings of this study suggest that tax authorities should strive to improve the quality of tax audits, increase the level of tax compliance, increase tax taxpayer knowledge, improve taxation systems, and increase the probability of fraud detection.

Q: What are the recommendations for taxpayers?

A: Taxpayers should strive to comply with their tax obligations, increase their knowledge about taxation, and report any suspicious activities to the tax authorities.

Q: What are the limitations of this study?

A: The limitations of this study include the small sample size and the use of convenience sampling.

Q: What are the future research directions?

A: Future research directions include investigating the impact of tax evasion on the economy, exploring the role of tax authorities in preventing tax evasion, and examining the effectiveness of tax evasion prevention strategies.

Q: What are the policy implications of this study?

A: The policy implications of this study include the need for tax authorities to improve the quality of tax audits, increase the level of tax compliance, increase tax taxpayer knowledge, improve taxation systems, and increase the probability of fraud detection.

By understanding the factors that affect taxpayers' perception of tax evasion ethics, tax authorities and taxpayers can work together to prevent tax evasion and promote a fair and transparent tax system.