TY - JOUR
T1 - What determines the tax compliance intention of individual taxpayers receiving COVID-19-related benefits? Insights from Indonesia
AU - Saptono, Prianto Budi
AU - Khozen, Ismail
N1 - Publisher Copyright:
© 2023, Emerald Publishing Limited.
PY - 2023/10/25
Y1 - 2023/10/25
N2 - Purpose: Even as governments worldwide take extraordinary measures and spend unprecedented amounts of their state budgets to combat COVID-19, tax compliance remains challenging. Therefore, this study employs previously identified predictors to investigate the factors that persuade individual taxpayers to comply with the law. Design/methodology/approach: Individual taxpayers in Indonesia (N = 699) who had experienced COVID-19-related benefits were asked to assess the provided evaluation regarding the tax compliance intention and its determinants. The bootstrapping analysis was employed using smart partial least squares (SmartPLS) to test the hypotheses. Findings: The results suggest that the perceived fiscal exchange, tax morality, tax fairness, tax complexity and the power of authority are significant determinants of tax compliance intention. This study also supports the indirect effects of numerous factors on tax compliance intention through the perceived fiscal exchange and tax morality. In practice, reminding taxpayers of how tax payments fund public services, improving taxpayer morale, increasing the perceived fairness of the tax system, streamlining the tax code and managing the effectiveness of tax administration could all lead to a greater intention to comply with the law. Originality/value: In addition to highlighting the dynamics of tax compliance amid the unprecedented pandemic crisis, our findings also provide insight into the importance of perceived fiscal exchange and tax morality for achieving and sustaining planned behavior to comply with tax rules.
AB - Purpose: Even as governments worldwide take extraordinary measures and spend unprecedented amounts of their state budgets to combat COVID-19, tax compliance remains challenging. Therefore, this study employs previously identified predictors to investigate the factors that persuade individual taxpayers to comply with the law. Design/methodology/approach: Individual taxpayers in Indonesia (N = 699) who had experienced COVID-19-related benefits were asked to assess the provided evaluation regarding the tax compliance intention and its determinants. The bootstrapping analysis was employed using smart partial least squares (SmartPLS) to test the hypotheses. Findings: The results suggest that the perceived fiscal exchange, tax morality, tax fairness, tax complexity and the power of authority are significant determinants of tax compliance intention. This study also supports the indirect effects of numerous factors on tax compliance intention through the perceived fiscal exchange and tax morality. In practice, reminding taxpayers of how tax payments fund public services, improving taxpayer morale, increasing the perceived fairness of the tax system, streamlining the tax code and managing the effectiveness of tax administration could all lead to a greater intention to comply with the law. Originality/value: In addition to highlighting the dynamics of tax compliance amid the unprecedented pandemic crisis, our findings also provide insight into the importance of perceived fiscal exchange and tax morality for achieving and sustaining planned behavior to comply with tax rules.
KW - COVID-19 pandemic
KW - Individual taxpayer
KW - Perceived fiscal exchange
KW - Tax compliance intention
KW - Tax morality
UR - http://www.scopus.com/inward/record.url?scp=85158884978&partnerID=8YFLogxK
U2 - 10.1108/IJSSP-02-2023-0045
DO - 10.1108/IJSSP-02-2023-0045
M3 - Article
AN - SCOPUS:85158884978
SN - 0144-333X
VL - 43
SP - 1190
EP - 1217
JO - International Journal of Sociology and Social Policy
JF - International Journal of Sociology and Social Policy
IS - 11-12
ER -