Tax Evasion: Is It Ethical or Unethical? (from Samarinda Taxpayers Perception)

DOI

10.2991/miceb-17.2018.3How to use a DOI?

Keywords

compliance cost, perception, tax evasion, tax fairness

Abstract

The tax evasion is a taxpayers active undertaking in the event of reducing, abolishing, illegally manipulating of the tax payable or not to pay tax payable as appropriate. It's believed that this action is influenced by two factors namely, Tax Fairness and Compliance Cost. If the tax fairness has been applied properly, so the taxpayer will tend not to do tax evasion and if the compliance cost is too high, so the taxpayer will tend to do tax evasion. Theoretically, the results of this study are expected to provide empirical evidence about the factors that affect taxpayers' perceptions on the tax evasion so that it can be useful for academics, practitioners, and tax policy makers. The population in this study are individual taxpayers registered in the Tax Office Primary in Samarinda. The used sampling technique is purposive sampling with the criteria: individual taxpayer who has a freelance work that amounts to 60 respondents. The freelance work in question is the work performed by an individual who has special skill to earn an income that is not bound by an employment relationship, such as lawyers, accountants, architects, sportsmen and the like. The analysis of this research data used PLS (Partial Least Square). The results of this study indicate that: (1) the tax fairness has a positively effect toward the taxpayers' perception on the tax evasion action, (2) the compliance cost positively affect the taxpayers' perception toward tax evasion action. Based on the findings can be concluded that the results of hypothesis analysis of tax fairness are not in accordance with the development of the hypothesis, while compliance cost are appropriate.

Copyright

© 2018, 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/).

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TY  - CONF
AU  - Nurhapizah Majid
AU  - Cornelius Rantelangi
AU  - Mr Iskandar
PY  - 2017/10
DA  - 2017/10
TI  - Tax Evasion: Is It Ethical or Unethical? (from Samarinda Taxpayers Perception)
BT  - Proceedings of the Mulawarman International Conference on Economics and Business (MICEB 2017)
PB  - Atlantis Press
SP  - 13
EP  - 18
SN  - 2352-5428
UR  - https://doi.org/10.2991/miceb-17.2018.3
DO  - 10.2991/miceb-17.2018.3
ID  - Majid2017/10
ER  -