TAX COMPLIANCE: POWER OF AUTHORITY AND PERCEIVED OF FAIRNESS IN ANTAGONISTIC CLIMATE

Wiwiek Prihandini

Abstract


The aim of the study is to determine the optimum level of taxpayer compliance that can be used as a basis for evaluating the achievement of taxpayer compliance level at one time period.This study uses data presented in tax assessment letters from financial statements published between 2007-2015. Probability audits, fines, and perceived of fairness are the variables used to predict taxpayer compliance.The Point of Optimum Compliance Tax is measured by the first derivative of the probability power of authority, perceived of fairness, and their interaction with the tax compliance. An optimum function (maximum / minimum) then the first instance of the function is zero.The result are Power of authority of Government to the tax obedience is above the optimum point, Trust in authority corporate taxpayers on the tax authorities are still not good because it is still below the optimum point, and The value of Tax Compliance has still under the optimum condition.

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