Kepatuhan di Tengah Kompleksitas Pajak: Apakah Literasi Memiliki Peran?

ABSTRACT Tax regulations have become increasingly complex in recent years. Therefore, this study aims to determine whether the tax complexity can reduce tax compliance. Furthermore, this study also intends to find out whether public literacy can play a role in maintaining compliance despite experiencing complex taxation aspects. This study uses secondary data in the form of complexity scores, tax effort, and literacy scores of various countries around the world. The sample of this study amounted to 52 countries, which were obtained by the purposive sampling method. This research is a quantitative study using moderated regression analysis. This study found that tax complexity is proven to reduce tax compliance. However, literacy cannot weaken these negative effects. The results of this study imply that the government needs to consider the complexity of regulations and procedures for fulfilling tax obligations to increase tax revenues. ABSTRAK Regulasi pajak semakin kompleks pada beberapa tahun terakhir. Oleh sebab itu, penelitian ini bertujuan untuk mengetahui apakah kompleksitas pajak dapat mengurangi kepatuhan pajak. Selain itu, penelitian ini juga bermaksud untuk mencari tahu apakah literasi masyarakat dapat berperan untuk mempertahankan kepatuhan meskipun mengalami aspek perpajakan yang kompleks. Studi ini menggunakan data sekunder berupa skor kompleksitas, tax effort, serta skor literasi berbagai negara di dunia. Adapun sampel penelitian ini berjumlah 52 negara, yang diperoleh dengan metode purposive sampling. Penelitian ini adalah studi kuantitatif dengan menggunakan analisis regresi dengan pemoderasi. Penelitian ini menemukan bahwa kompleksitas pajak terbukti dapat mengurangi kepatuhan pajak. Namun demikian, literasi tidak dapat memperlemah efek negatif tersebut. Hasil penelitian ini berimplikasi bahwa pemerintah perlu mempertimbangkan kompleksitas regulasi maupun tata cara pemenuhan kewajiban perpajakan untuk dapat meningkatkan pendapatan pajak.

Income Tax Complexity Faced by Multinational Corporations: A Comparative Study of Canada, the United States, and Other Selected OECD Countries

This study examines the complexity of Canada's corporate income tax system from the perspective of multinational corporations and compares it with the complexity of the US system, also taking into account measures of complexity for 19 other member countries of the Organisation for Economic Co-operation and Development (OECD). The author finds that with regard to the Canadian tax code, the most complex laws are those on corporate reorganization, transfer pricing, and controlled foreign corporations, and with regard to the Canadian tax framework, the most complex areas are tax audits, tax-law enactment, and tax guidance. In comparison with other OECD countries, Canada is remarkably similar to the United States. Both countries have a medium level of overall complexity, and both have a more complex tax code but a less complex tax framework than other countries. However, a closer examination of the Canadian and US tax codes and tax frameworks reveals some significant differences in complexity levels, particularly in respect of certain tax laws.

The Effects of Tax Knowledge, Tax Complexity and Tax Morale Towards Tax Compliance Behaviour Among Salaried Group in Malaysia

This study examines the relationship between tax knowledge, complexity and morale with the tax compliance behaviour among salaried group in Malaysia. A structured questionnaire were distributed to the private and government sector employees throughout Malaysia. The data analysis from 152 completed responses revealed that tax knowledge, complexity and morale proved to have significant influences on the tax compliance behaviour among salaried group. The findings of this study not only contribute to literature in exploring determinants that encourage voluntary compliance among the taxpayers under the Self-Assessment System (SAS) in Malaysia, they also provide insights to the governing bodies and the tax authorities of the needs to improve the current tax policy and merangka strategic movement in improving tax literacy among the taxpayers. This present study, however, has limitations due to the use of closed questionnaires that might not capture further information completely on the understanding of tax regulations and the factors causing non-compliance.

GST complexities in Malaysia: views from tax experts

Purpose The Goods and Services Tax (GST) implementation in Malaysia had raised various responses from many parties involved when the new tax was introduced in 2015 until its abolishment in 2018. GST complexity has been stated as part of the reasons for its resistance and abolishment. The purpose of this paper is to identify causes of GST complexities during its implementation in Malaysia. Design/methodology/approach This paper draws on causes of tax complexity from previous studies and conducted semi-structured interviews with tax experts. The respondents comprised of subject matter experts in GST and the findings are based on their numerous years of experiences handling clients with diverse backgrounds. Findings Findings from this study are categorised into legal complexity and declarative complexities. Almost all the causes of complexities from prior studies were encountered by Malaysian businesses. This study concluded that the most likely reasons for the abolishment of GST in Malaysia are: numerous rules and exception to the rules (e.g. 35 tax codes, gifts rules, 21-day rules), frequent changes of GST rulings and guidelines, GST computations that were too difficult for mixed supply and process of GST refund that were onerous and lengthy. Research limitations/implications Limitations of this paper include reliance on the respondents’ ability to accurately and honestly recall details of their experiences, circumstances, thoughts or behaviours that are being asked. Practical implications Despite the abolishment of the GST in Malaysia, it is pertinent to identify the causes of GST complexities that can be learnt by the relevant authorities. Measures can be formulated to mitigate the identified GST complexities to ensure high compliance among businesses with other existing taxes or new taxes (if any) to be introduced in the future. This includes addressing the competency of RMCD officers and businesses on the rules and regulations, minimal rules and exception to the rules, a simplified GST computations for mixed supply and a systematic refund process. Originality/value The research method used is a flexible and powerful tool to capture the voices and the ways respondents make meaning of their experience dealing with the GST matters. The findings reveal a deep understanding of the issues from the views of the experts in the field.

Influence of Tax Knowledge and Tax Complexity on Compliance Behavior Among Sole-Proprietors

Tax noncompliance is widely believed as a major concern for all tax administration in almost all countries. This issue calls for serious attention as the problem of noncompliance will cause losses of current income to the government. Studies on tax compliance have found that the compliance levels of sole proprietor are likely to be considerably low compared to other groups of taxpayers. Despite having the least compliance level, little is known about their taxpaying behaviour towards tax compliance. Various factors influencing tax compliance have been discussed in a previous study, but tax knowledge and tax complexity were the most important determinant among sole proprietors. Thus, this study aims to examine taxpayers' views on their level of tax knowledge and perceived complexity of the income tax system. The data was collected through Google Form that were distributed to sole proprietors who run the small business activities. The results revealed that tax knowledge and tax complexity are viewed as contributing factors towards non-compliance behaviour among sole proprietors. The finding of this study may be of interest to revenue bodies for addressing tax compliance issues. In ensuring the success of the revenue process, the collaboration between the tax authority and tax researchers is important to further understand the taxpayers’ compliance behaviour. Isu pematuhan cukai merupakan kebimbangan utama bagi semua pentadbir cukai hampir semua negara. Isu ini memerlukan perhatian yang serius kerana masalah ketidakpatuhan cukai akan mengakibatkan kerugian pada pendapatan negara. Kajian ke atas pematuhan cukai mendapati bahawa tahap pematuhan cukai di kalangan pemilikan tunggal adalah lebih rendah berbanding dengan pembayar-pembayar cukai yang lain. Walaupun mereka sering dikatakan mempunyai tahap pematuhan cukai yang rendah, namun sedikit sahaja kajian dilakukan tentang sikap terhadap tingkahlaku pematuhan cukai. Pelbagai faktor yang mempengaruhi pematuhan cukai telah dibahas dalam kajian sebelumnya, tetapi pengetahuan dan kerumitan cukai adalah penentu yang paling penting di kalangan pemilikan tunggal. Justeru kajian ini bertujuan menentukan pengaruh pengetahuan cukai dan tahap kerumitan cukai terhadap ketidakpatuhan cukai. Data kajian dikumpulkan melalui Google Form yang diedarkan kepada pemilik tunggal yang menjalankan aktiviti perniagaan secara kecil-kecilan. Hasil kajian menunjukkan bahawa pengetahuan dan kerumitan cukai dilihat sebagai faktor penyumbang terhadap tingkah laku ketidakpatuhan di kalangan pemilik tunggal. Dapatan kajian ini diharap dapat membantu pihak berkuasa dalam menangani isu ketidapatuhan cukai. Walaubagaimanapun, bagi memastikan proses pemungutan cukai berjalan dengan baik, pihak berkuasa percukaian dan penyelidik perlu bekerjasama untuk lebih memahami isu-isu pematuhan cukai.

PERCEPTION OF CORRUPTION, PERCEPTION OF TAX COMPLEXITY, AND FINANCIAL INFORMATION ACCESS: EXTENDING THE ANALYSIS OF THE SLIPPERY SLOPE FRAMEWORK

Tax literature indicates perception of corruption and perception of tax complexity as tax compliance factors. Nevertheless, although the initial SSF theory suggests several tax compliance factors to have associations with trust in and power of tax authorities, none of the SSF studies pay their attention on these two factors. Therefore, based on survey questionnaires on 500 individual taxpayers in Jakarta, Indonesia, as well as interviews on several taxpayers and tax officers in the Directorate General of Taxes (DGT), this study is dedicated to elaborating the associations between these factors and trust and power and how the change in financial information access affects them. Mixed methods research was used through conducting a survey of individual taxpayers, and interviewing both individual taxpayers and tax officers. The results show that the factors are proven to have significant influence on trust in and power of the tax authorities, even though there is no significant association between perception of tax complexity and power. The results also confirm main SSF assumptions that trust leads to voluntary compliance while voluntary compliance positively affects overall tax compliance. Yet, the study fails to evidence the relationship of power to enforced compliance, while enforced compliance is found to negatively affects overall tax compliance.

The Determinants of Tax Compliance In Southern Sumatera

The aims of research are to analyze the effect of tax knowledge, tax complexity and tax justice on taxpayers' trust and tax compliance as well differences of the levels of tax compliance in the Southern Sumatera. This research is descriptive with quantitative approach. Method of the collecting data uses questionnaire substantially contains those variables and documentation. The analysis method uses confirmatory factor analysis (CFA) with the structural equation modelling (SEM) approach. Results of the research showed that (1) tax knowledge has no effect on taxpayers' trust; (2) tax complexity has no effect on taxpayers' trust; (3) tax justice effects on taxpayers' trust; (4) tax knowledge has no effect on tax compliance; (5) tax complexity has no effect on tax compliance; (6) tax justice effects on tax compliance; (7) taxpayers' trust effects on tax compliance and (8) there are differences in the level of tax compliance after the implementation of SMS Blast policy. Keywords: Tax Compliance; Taxpayers' Trust; Tax Knowledge; Tax Complexity; Tax Justice; Individual Taxpayers; SMS Blast