Proceedings of the International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 19)

Tax Fraud Reporting: The Effect of Envious Motive and Financial Reward

Authors
Retnaningtyas Widuri, Illona Jevera, Janice Zerlinda
Corresponding Author
Retnaningtyas Widuri
Available Online November 2019.
DOI
https://doi.org/10.2991/teams-19.2019.13How to use a DOI?
Keywords
Tax Fraud Reporting; Financial Reward; Envious Motive; Whistleblower
Abstract

This research examines the influence of envious and financial reward on tax fraud reporting. The focus in this research is on the motivation of a tax payer in reporting other tax payer who committed tax fraud. This research use fully crossed between-subjects design in experimental studies. This research use primary data which is obtained by using experimental studies as a media. The sample used in this research is data from 50 personal tax payers in Indonesia, with an accidental sampling method. There are two motivations in this research, first is intrinsic motivation that we mention as the existence of envious. The envious here means a tax payer who committed tax fraud has higher net income so that they have bigger funds or capital to develop their business, compared to tax payers who obey paying taxes. Extrinsic motivation in this research is financial reward, which means the tax payers who report the tax fraud (whistleblower) to the Pusat Pengaduan Direktorat Jenderal Pajak will get amount of money as a reward. This research found that both of this motivation do not have significant effect on the intention to report a tax payer who committed tax fraud. But, when envious motive associated with moral obligations as mediation variable, it shows better result. This research contributes to Indonesia Tax Authority in optimizing the participation of whistleblower, which will minimize the occurrence of tax fraud. The result of this research gives some suggestions to improve tax compliance that will create justice for all tax payers in Indonesia, some action that will support whistleblower is increasing protection for the tax fraud reporter. Other suggestion is to motivate even more, both in moral and reward.

Copyright
© 2019, 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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Volume Title
Proceedings of the International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 19)
Series
Advances in Economics, Business and Management Research
Publication Date
November 2019
ISBN
978-94-6252-843-7
ISSN
2352-5428
DOI
https://doi.org/10.2991/teams-19.2019.13How to use a DOI?
Copyright
© 2019, 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/).

Cite this article

TY  - CONF
AU  - Retnaningtyas Widuri
AU  - Illona Jevera
AU  - Janice Zerlinda
PY  - 2019/11
DA  - 2019/11
TI  - Tax Fraud Reporting: The Effect of Envious Motive and Financial Reward
BT  - Proceedings of the International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 19)
PB  - Atlantis Press
SP  - 68
EP  - 73
SN  - 2352-5428
UR  - https://doi.org/10.2991/teams-19.2019.13
DO  - https://doi.org/10.2991/teams-19.2019.13
ID  - Widuri2019/11
ER  -