Effect of Fairness, Transparency on Trust and Its Impact on Taxpayer Compliance with Social Norms as Moderating Variable

  • Ida Bagus Teddy Prianthara, Putu Kepramareni, I. Gusti Ayu Wirati Adriati, Ida Ayu Budhananda Munidewi, Wayan Suryasa

Abstract

-This study aimed to analyze the effect of fairness, transparency on trust, and its impact on taxpayer compliance with social norms as a moderating variable. This research was driven by Indonesia’s general taxation conditions at the moment the tax ratio was very low, ranking seventh out of eight ASEAN member countries. In this research, social capital theory consisting of beliefs, norms, and networks is used as a theoretical framework to expand and complete tax research. Research data obtained from a survey determined for 86 taxpayers (WP) starred hotels in Bali Province. The results of data analysis show that the attitude of taxpayers to the trust of taxpayers has a significant positive effect on taxpayer compliance, tax fairness to taxpayer trust has a significant positive effect on taxpayer compliance, transparency of taxpayer trust has a significant positive effect on taxpayer compliance, social norms the trust of taxpayers has a significant positive effect on taxpayer compliance, and taxpayer’s trust in taxpayer compliance has a significant positive effect on taxpayer compliance. This study concluded the strength of social capital in the form of trust, networking, and social norms can increase awareness, compliance, taxpayers to meet their tax obligations.

Published
2020-05-15