Does Coercive Power Influence The Relationship of Tax Morale on Tax Evasion

DOI

10.2991/aebmr.k.200606.010How to use a DOI?

Keywords

tax morale, coercive power, tax evasion, tax compliance

Abstract

This study aims to examine the effect of tax morale against tax evasion and examine the role of coercive power as a moderating variable that can strengthen or weaken the direct relationship of tax morale to tax evasion. The study uses 100 individual taxpayers who earn income from various sources. Methods of data collection are done through a survey. This research data analysis using partial least square structural equation models (PLS-SEM) and using WarpPLS software. The result of this study indicates that tax morale acts negatively towards tax evasion. The higher the tax morale, the tax evasion will decrease. The moral of taxpayers in this study provides a positive impact on reduces tax evasion. The results also showed that coercive power as a moderator variable was not proven to weaken or strengthen the effect of tax morale on tax evasion. The taxpayer in this study realised that the tax obligations should be implemented with its own consciousness without coercion mechanism with sanctions or compliance tests through tax audits. Besides, the tax obligation in this study sees that law enforcement through tax audits and sanctions will lead to high compliance costs. This finding provides important implications that the taxpayer does not want to feel forced to fulfil the tax obligations. Tax compliance that is forced through sanctions and tax audits does not guarantee that tax evasion will decrease. In fact, through the implementation of voluntary tax compliance, taxpayers with their awareness can fulfil their tax obligations which can have an impact on increasing tax compliance.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

TY  - CONF
AU  - Yenni Mangoting
AU  - Vanessa Alma Sumarno
AU  - Talita Gloria
AU  - Sonia Dwi Indriani
PY  - 2020
DA  - 2020/06/09
TI  - Does Coercive Power Influence The Relationship of Tax Morale on Tax Evasion
BT  - Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019)
PB  - Atlantis Press
SP  - 60
EP  - 68
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200606.010
DO  - 10.2991/aebmr.k.200606.010
ID  - Mangoting2020
ER  -