Article Sidebar

Download
PDF
Statistic
Read Counter : 204 Download : 179

Main Article Content

Abstract

Tax compliance in Indonesian government institutions significantly affects national revenue and resource allocation. This study addresses tax non-compliance by identifying its causes and proposing mitigation strategies. The research aims to understand why government institutions in Indonesia struggle with tax compliance, with objectives including identifying inhibiting factors, assessing their impact, and proposing mitigation strategies. This integrated approach encompasses various elements, including a descriptive analysis approach, comprehensive literature research, comparative analysis, a qualitative research approach, and secondary data collection. Findings highlight complex regulations, inadequate tax education, and inconsistent enforcement as compliance hindrances. The study quantifies their impact. Proposed solutions include simplifying tax rules, enhancing tax education, and enforcing tax laws. In conclusion, this research informs policymakers, tax authorities, and government officials about tax compliance challenges, offering insights to improve tax collection and resource allocation, potentially increasing government revenue and promoting sustainable development.

Keywords

Tax Compliance Factors Government Institutions Mitigation Strategies Indonesian Taxation Revenue Enhancement

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Silalahi, H. (2024). Enhancing Tax Compliance in Indonesian Government Institutions: Identifying and Mitigating Inhibiting Factors . Ilomata International Journal of Tax and Accounting, 5(1), 162-179. https://doi.org/10.52728/ijtc.v5i1.783

References

  1. Adi, A. , & N. D. (2020). Tax administration reform and taxpayer compliance: Evidence from Indonesia. Journal of Accounting and Taxation, 12(3), 59–72.
  2. Anderson, J. , & B. L. (2023). The impact of tax incentives on foreign direct investment: A systematic review. International Journal of Finance and Economics, 45(2), 187–204.
  3. Artz, B. (2010). Fringe benefits and job satisfaction. International Journal of Manpower, 31(6), 626–644. https://doi.org/10.1108/01437721011073346
  4. Crocker, M., Milte, R., Duff, G., Lawless, M., Corlis, M., & Ratcliffe, J. (2022). Are Australians willing to pay more tax to support wage increases for aged care workers? Findings from a national survey. Australasian Journal on Ageing, 41(4), 513–521. https://doi.org/10.1111/ajag.13094
  5. Diamond, P., & Saez, E. (2011). The case for a progressive tax: From basic research to policy recommendations. Journal of Economic Perspectives, 25(4), 165–190. https://doi.org/10.1257/jep.25.4.165
  6. Direktorat Jenderal Pajak. (2022). Laporan Tahunan Direktorat Jenderal Pajak Tahun 2022. Kementerian Keuangan.
  7. Downs, A., & Stetson, B. (2014a). Economic and Non-Economic Factors: An Analysis of Corporate Tax Compliance. In Advances in Taxation (Vol. 21, pp. 37–72). Emerald Group Publishing Limited. https://doi.org/10.1108/S1058-749720140000021002
  8. Downs, A., & Stetson, B. (2014b). Economic and Non-Economic Factors: An Analysis of Corporate Tax Compliance. In Advances in Taxation (Vol. 21, pp. 37–72). Emerald Group Publishing Limited. https://doi.org/10.1108/S1058-749720140000021002
  9. Eichner, T., & Pethig, R. (2018). Self-enforcing capital tax coordination. Journal of Business Economics, 88(7–8), 915–940. https://doi.org/10.1007/s11573-018-0895-7
  10. Firmansyah, R. A., & Wijaya, S. (2022). Natura dan Kenikmatan Sebelum dan Sesudah Undang-Undang Harmonisasi Peraturan Perpajakan. Jurnal Pajak Dan Keuangan Negara.
  11. Hadipryanto, J., Sarah, S., Nuryanti, T., Yeni, Y., Ramadhony, R., & Adhikara, A. (2023). ANALYSIS OF TAX AMNESTY IMPLEMENTATION IN TAX REVENUE IN ASIAN REGION COUNTRIES. Riset, 5(1), 014–028. https://doi.org/10.37641/riset.v5i1.214
  12. Herawaty, V. , & K. H. (2021). Government Tax Policy in Achieving Good Governance in Indonesia. Journal of Accounting, Finance and Auditing Studies, 7(1), 94–105.
  13. Hsu, A., & Liu, S. (2023a). The effect of book-tax conformity on the information environment: from the analyst perspective. Review of Quantitative Finance and Accounting. https://doi.org/10.1007/s11156-023-01160-5
  14. Hsu, A., & Liu, S. (2023b). The effect of book-tax conformity on the information environment: from the analyst perspective. Review of Quantitative Finance and Accounting. https://doi.org/10.1007/s11156-023-01160-5
  15. Indradi. (2023). Repeated Tax Amnesties in Indonesia: An Evaluation of Tax Compliance. Ilomata International Journal of Tax and Accounting, 4(3), 385–406. https://doi.org/10.52728/ijtc.v4i3.759
  16. Irawan, T. , & S. A. S. (2019). The Effect of Government Policies and Tax Compliance on Tax Revenue: A Case Study in Indonesia. International Journal of Economics, Commerce, and Management, 7(3), 35–48.
  17. Iswahyudi, H. (2021). THE PERSISTENT EFFECTS OF COVID-19 ON THE ECONOMY AND FISCAL CAPACITY OF INDONESIA. Jurnal Ekonomi Dan Pembangunan, 29(2), 113–130. https://doi.org/10.14203/jep.29.2.2021.113-130
  18. Kraemer, R., & Lehtimäki, J. (2023). Government debt, European Institutions and fiscal rules: a synthetic control approach. International Tax and Public Finance. https://doi.org/10.1007/s10797-023-09791-z
  19. Lee, C. , & L. H. (2019). Tax incentives and firm performance: Evidence from a regression discontinuity design. Journal of Financial and Quantitative Analysis, 54(3).
  20. Ministry of Finance. (2022). Laporan Keuangan Pemerintah Pusat Tahun 2022. Https://Djpb.Kemenkeu.Go.Id/Portal/Id/Data-Publikasi/Publikasi-Cetak/Laporan-Keuangan-Pemerintah-Pusat-Lkpp.Html.
  21. Mitchell, M. , & S. R. (2020). Tax law complexity and taxpayer compliance: Evidence from the United Kingdom. European Accounting Review, 29(3), 485–510.
  22. Ngwaba, C. A., & Azizi, S. S. (2020). Effectiveness of tax reform on entrepreneurship. Journal of Entrepreneurship and Public Policy, 9(1), 94–111. https://doi.org/10.1108/JEPP-07-2019-0060
  23. Nursalam, M. , & Z. M. (2017). The Influence of Taxpayer Perception, Tax Penalties, and Tax Knowledge on Tax Compliance of Government Institutions in Indonesia. International Journal of Economics, Commerce, and Management, 5(2), 40–52.
  24. Pu, C., & Syu, H.-F. (2023). Effects of disability on income and income composition. PLoS ONE, 18(5 May). https://doi.org/10.1371/journal.pone.0286462
  25. Puspitasari, R. , & N. S. (2017). The Effect of Taxpayer Awareness, Tax Penalties, and Tax Sanctions on Tax Compliance of Government Institutions. Journal of Accounting and Investment, 18(1), 37–48.
  26. Rahman, M. , & A. F. (2020). (2020). Tax compliance costs and small and medium enterprises: A comparative analysis of developed and developing countries. International Review of Applied Economics, 34(3).
  27. Republik Indonesia. 2021. Peraturan Menteri Keuangan Republik Indonesia Nomor 59/PMK.03/2022 tentang Perubahan Atas Peraturan Menteri Keuangan Nomor 231/PMK.03/2019 tentang Tata Cara Pendaftaran dan Penghapusan Nomor Pokok Wajib Pajak, Pengukuhan dan Pencabutan Pengukuhan Pengusaha Kena Pajak, Serta Pemotongan dan/atau Pemungutan, Penyetoran. Dan Pelaporan Pajak Bagi Instansi Pemerintah. (n.d.).
  28. Rosadi, R. , & W. R. (2015). The Influence of Taxation System and Taxation Knowledge on the Level of Tax Compliance: A Study on the Taxpayer of Government Institutions. Journal of Economics and Sustainable Development, 6(18), 9–15.
  29. Saragih, A. H., Reyhani, Q., Setyowati, M. S., & Hendrawan, A. (2022). The potential of an artificial intelligence (AI) application for the tax administration system’s modernization: the case of Indonesia. Artificial Intelligence and Law. https://doi.org/10.1007/s10506-022-09321-y
  30. Satyadini, A. E., Rea Erlangga, R., & Vdkg, B. S. (n.d.). WHO AVOIDS TAXES? AN EMPIRICAL EVIDENCE FROM THE CASE OF INDONESIA.
  31. Suranta, E. , & N. P. (2018). Tax Compliance of Government Institutions: A Study on Tax Compliance Factors and Their Impact on Tax Revenues. International Journal of Scientific and Research Publications, 8(10), 399–404.