Analysis of Tax Compliance: Utilizing the Theory of Planned Behavior
and Cognitive Dissonance Theory Approaches
USTMAN1, NURKHOLIS2, ZAKI BARIDWAN3, ABDUL GHOFAR4
1Department of Accounting, University of Brawijaya,
Jl. MT. Haryono, Malang, East Java,
INDONESIA
2,3,4Department of Accounting, University of Brawijaya,
Jl. MT. Haryono, Malang, East Java
INDONESIA
Abstract: This research aims to investigate the social psychological influence of taxpayers on tax
compliance behavior, focusing on individuals' thoughts, emotions, and actions. This study investigates
how attitude, subjective norms, and perceived behavioral control affect individuals' tax compliance
intention, and how this compliance intention influences tax compliance behavior. The research also
examines the role of emotionality and spirituality as moderators between compliance intention and tax
compliance behavior. The research employed convenience sampling on Madura Island and gathered
177 respondents. The research employed the Structural Equation Modeling (SEM) technique. This
study discovered a notable correlation between attitudes, subjective norms, and perceived behavioral
control in relation to compliance intention. The compliance intention does not influence tax
compliance behavior. The moderating effect of spirituality also does not enhance the relationship
between compliance intention and tax compliance behavior. However, emotionality effectively
moderated the relationship between compliance intention and tax compliance behavior. Emotionality
can undermine tax compliance behavior due to the taxpayer experiencing hurt feelings or intolerable
emotions. This study has significant implications for tax authorities in preserving taxpayers' emotional
well-being through a professional manner.
Key-words: Tax compliance, attitude, subjective norms, perceived behavioral control, emotionality,
spirituality.
Received: March 17, 2024. Revised: August 13, 2024. Accepted: September 15, 2024. Published: October 18, 2024.
1. Introduction
The 1945 Constitution of the Republic of
Indonesia requires the state to protect the people
and promote general welfare to achieve social
justice. Accomplishing this objective necessitates a
large state budget. State revenue is derived from
four main sources: customs and excise, taxes, non-
tax state revenue, and grants.
Tax revenues are the primary source of
state income used to fund state expenditures.
However, tax revenues fall short of the targets set
in the State Budget (APBN) and even show a
decreasing trend [1],[2]. This situation will
adversely affect state finances as the expected state
revenue falls short of targets, leading to unmet
government program goals.
One way to ensure the stability of state
finances is to enhance the collection of tax
revenues to meet the set target. Tax compliance is
increased to boost tax revenues. Tax compliance is
determined by the precision of tax reporting, not by
the total tax burden paid by taxpayers. The
Directorate General of Taxes (DGT) has enhanced
statutory regulations to boost taxpayer compliance.
The latest improvement is the Harmonization of
Tax Regulations, scheduled to be implemented in
2022.
The DGT's attempts to enhance tax
compliance through regulations, policies, services,
and sanctions contradict the self-assessment system
because this policy emphasizes on raising
awareness within individual taxpayers. The DGT
assumes that taxpayers will fulfill their tax
obligations primarily due to economic factors such
as sanctions, administration, audits, tariffs, rewards,
and tax services [3],[4],[5]. Then, [6], advocated
for investigating more social psychological factors
to evaluate tax compliance behavior. Tax
compliance behavior is an individual's response or
reaction toward stimuli to obey and comply with
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reporting rules, paying State levies consciously,
voluntarily and in an orderly manner. Assessing tax
compliance behavior cannot be done directly; it
requires influence or behavioral triggers [7].
Sociological and psychological approaches suggest
that individuals are not autonomous, self-centered,
and maximize utility. They engage in social
interactions with other individuals based on
attitudes, beliefs, norms, and roles [8]. Meanwhile,
researchers are starting to respond to this
phenomenon [1],[2],[9],[10],[11],[12],[13].
The Theory of Planned Behavior (TPB) is
a behavioral research theory that employs a
psychological approach. The Theory of Planned
Behavior (TPB) is utilized as a theoretical
framework to analyze human behavior expressed
through the intention of taxpayer compliance
behavior. [14] posits that intentions represent
motivational factors that impact behavior. If the
environment offers enough motivation and
opportunities, intentions will align with behavior
consistently. Then, [14], examined the determinant
factors of intention according to the Theory of
Planned Behavior (TPB), which includes attitudes,
subjective norms, and perceived behavioral control.
Multiple studies have shown that attitudes,
subjective norms, and perceived behavioral control
play a crucial role in determining compliance
intention [1],[2],[9],[13],[15],[16],[17],[18], found
that perceived behavioral control, including trust in
the government, tax authorities, tax information,
and tax awareness, did not significantly impact
individuals' tax compliance intention. Previous
research findings on tax compliance behavior are
inconsistent, indicating a need for further
development.
Prior studies utilized the Theory of Planned
Behavior (TPB) to discuss individual self-
awareness solely in relation to cognitive elements.
This is centered on the rationality, logic, and
analysis associated with the left brain, focusing on
the connection between behavior and tax
compliance intention. This includes attitudes,
subjective norms, perceived behavioral control,
ethics [11], and moral obligations [9]. According to
psychology, the influence of the Conscious Mind
which is characterized by cognitive, rational,
logical, and analytical processes contributes only
12% of individual behavior. The remaining 88% is
attributed to thoughts from the subconscious.
Psychological science motivates researchers to
address individual behavioral issues in accounting
[19]. The subconscious mind's contribution
provides a physiological reaction which is able to
enhance or diminish the compliance intention
towards tax compliance behavior.
Physiological responses are alterations in
mindset resulting from dissonance or changes in
attitude towards selected or unselected options that
were earlier considered equally valuable or
consonant [20]. [21] originated dissonance research
with the Theory of Cognitive Dissonance, which
states that when an individual holds two cognitions
(ideas and thoughts) simultaneously and contradicts
concurrently, that person will experience cognitive
dissonance. Physiological reactions that influence
changes in tax compliance behavior are emotional
and spiritual factors.
[21] defines emotional conceptualization as
the situation in which an individual suffers
cognitive dissonance due to anything that is
extremely unpleasant and intolerable. When
making decisions, an individual is supported by
both the logical and emotional brain. When an
individual is composed and free from stress, the
logical brain functions well. However, under some
circumstances especially while facing danger, the
logical brain is sometimes bypassed by the
emotional brain. Emotional brain bypass occurs
during states of anxiety, stress, panic, and wrath
[22]. [23] introduces a novel model that builds on
the elements of conflict awareness between
cognitive and rational assumptions involving
normative reasoning and integrating emotionality
into the conflict process. This demonstrates how
emotionality feeds back into both reasoning and
provides additional motivating strength.
Emotional stability can be attained through
spirituality [24]. Spirituality reflects an individual's
devotion to their beliefs, particularly religious
aspects. Individuals who have fully internalized the
teachings of their religion will integrate their
spiritual beliefs into all aspects of their actions and
behavior in life. Research has demonstrated that
religious orientation impacts both compliance
intention and tax compliance behavior [1].
Integrating cognitive, emotional, and
spiritual elements is challenging due to the
potential emergence of dissonance. These three
elements sometimes conflict and contradict within
individual taxpayers. From this explanation,
researchers aim to develop the theory of planned
behavior in explaining tax compliance behavior.
The theory of planned behavior examines attitudes,
subjective norms, and perceived behavioral control
towards compliance intention and tests the
correlation between compliance intention and tax
compliance. This study introduces the moderating
factors of emotionality and religiosity to enhance
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the existing literature on Theory of Cognitive
Dissonance (TCD) in behavioral accounting
research. This research adds to the existing body of
knowledge and influences governmental decision-
making in Indonesia. First, the behavior of
taxpayers in Indonesia is impacted by attitudes,
both positive and negative, which affect emotional
elements [25]. Second, taxpayer behavior is also
affected by spiritual beliefs that are sensitive to
religious values. It is crucial for the government to
enhance tax compliance.
2. Literature review
2.1 Tax Compliance
The Decree of the Minister of Finance
outlines the criteria for taxpayer compliance, which
include timely submission of tax notification letters
for the past two years, lack of tax arrears for all
taxes except those obtaining permits, no history of
being convicted of a tax crime in the last ten years,
bookkeeping was conducted in the last two tax year
and if the taxpayer undergoes an audit, the
adjustment for each tax category owed cannot
exceed five percent.
[26] state that compliance consists of three
dimensions: payment compliance, reporting
compliance, and filling compliance. In more detail,
[27] categorize tax compliance into two parts:
formal compliance and material compliance.
Formal compliance occurs when the taxpayer
fulfills tax obligations formally in accordance with
the provisions of the tax law. For instance is the
deadline for submitting an Income Tax Return.
Submitting the Annual Income Tax Return (SPT
PPh) before the deadline fulfills formal provisions,
but does not guarantee the contents fulfill the
material provisions. Material compliance occurs
when the taxpayer substantively fulfills all material
tax provisions, according to both the literal
meaning and intended purpose of the tax law.
Taxpayers who fulfill material compliance are
those who accurately, thoroughly, and correctly
complete their Tax Return (SPT) according to the
provisions and regulations and submit it to the Tax
Service Office (either in person or online) before
the deadline.
Tax compliance refers to taxpayers paying
taxes on time and calculate taxes accurately
following tax regulations [8]. Tax compliance costs
refer to the direct expenses incurred by a company
in complying with the regulatory requirements of
the tax system. Tax compliance refers to the
expenses incurred by companies and taxpayers in
complying with the rules. The focus is on direct
load. Taxation can lead to indirect tax expenses for
businesses. For instance is some companies
intentionally decrease their sales to remain under
the Non-Taxable Income threshold in order to
evade taxes. These behavioral distortions will result
in decreased total state revenue. These are referred
to as the indirect costs of tax compliance [28].
2.2 The Impact of Attitude on Compliance
Intention
Attitudes are the result of evaluations of
specific behaviors and are supported by previous
experiences [29]. [14] explains that attitudes
toward behavior can refer to the extent to which an
individual has a favorable or unfavorable
evaluation and assessment of the behavior
considered. Individual attitudes are determined by
the individual's fundamental beliefs about the
results they hope to achieve by engaging in
behavior [9]. [30] said that in order for an attitude
measure to effectively predict behavior, it must
align with the criteria for behavioral intention in
terms of action, target, context, and time elements.
. Previous research has found that a
positive attitude promotes tax compliance, and a
negative attitude leads to tax non-compliance [31].
According to the theory of planned behavior,
personal attitudes towards behavior originate from
beliefs about the consequences of such behavior
[2].
Research conducted by [32] revealed that
taxpayers' attitudes towards the tax system
influence their intentions for tax evasion and also
influence their intentions for tax compliance. [9] in
their research stated that taxpayers' attitudes
towards tax compliance have a positive effect on
their compliance intention. Research by [33]
revealed that negative attitudes of taxpayers will
also increase intentions to evade taxes. [34]
empirically proves that attitudes towards tax non-
compliance have a positive effect on the intention
to behave non-compliantly. [1] empirically proves
that the taxpayer's attitude to comply has a positive
effect on the compliance intention.
From the analysis provided, the following
research hypothesis is formulated:
H1: Attitude positively influences compliance
intention
2.3 The Impact of Subjective Norms on
Compliance Intention
Subjective norms refer to the social
pressure seen through an individual's feelings or
expectations about whether to do or not to do a
behavior. According to [14] subjective norms are
the influence of other individual's references.
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Subjective norms refer to an individual’s beliefs
about whether a particular individual or group
approves or disapproves that individual engaging in
a particular behavior, and the extent to which the
individual is motivated to conform to that other
individual or group. Subjective norms can be
evaluated either directly or by considering the
fundamental beliefs underlying the individual's
assessment of subjective norms
Previous research has found a correlation
between taxpayers' beliefs about other individual's
expectations and tax compliance intention. [35]
examined factors influencing compliance and
revealed that p peer compliance behavior has a
greater impact on tax compliance than an
individual's own compliance level. [36] measured
taxpayers' beliefs about subjective norms by
considering the beliefs of their groups, including
family members, employers, friends and partners.
Based on the explanation above, the
research hypothesis is formulated as follows:
H2: Subjective norms positively influence
compliance intentions.
2.4 The Impact of Perceived Behavioral
Control On Compliance Intention
Perceived behavioral control refers to an
individual's feelings about carrying out a certain
behavior. [14] defines perceived behavioral control
as the perception of how easy or difficult in
carrying out a behavior and is assumed to reflect
past experiences as well as anticipated barriers and
obstacles. In the context of tax compliance, factors
such as the tax authority's power, tax complexity,
tax sanctions, tax information, tax regulations, and
tax awareness can be obstacles to control taxpayer
behavior [13].
Perceived behavioral control determines
the level of performance difficulty displayed by an
individual. These elements may have a direct
impact on behavior. For example, if behavioral
control does not depend on individual desires such
as legal sanctions, then perceived behavioral
control can directly influence behavior [11].
Previous research identified the influence
of perceived behavioral control on compliance
intention. [13] research regarding perceived
behavioral control found that tax complexity has a
significant effect on compliance intention. This
implies that taxpayers' compliance intentions may
be controlled by their experiences in paying taxes,
such as difficulties in following tax payment
procedures, rather than their personal knowledge or
information about taxes and perceptions of how tax
authorities detect their non-compliance.
[1],[9],[11], also succeeded in proving empirically
that perceived behavioral control has a positive
effect on tax compliance intention.
Based on the explanation above, the
following research hypothesis may be developed:
H3: Perceived behavioral control positively
influences compliance intention.
2.5 The Impact of Perceived Behavioral
Control On Compliance Intention
[14] explains that intentions are assumed to
capture motivational factors that influence
behavior. Intentions align with behavior with
behavior if the environment provides sufficient
motivation and opportunities. Behavioral intentions
can be manifested through behavior only if the
behavior is under volitional control, meaning the
individual can freely choose to perform or not to
perform the behavior. In terms of taxation, [2]
explains that intention is the taxpayer's tendency to
engage in tax compliance behavior.
[18] empirically prove that the compliance
intention has a positive effect on tax compliance.
The results of research from [1],[37] obtained
empirical data that the compliance intention
positively affects tax compliance. This explains
that the higher compliance intention leads to more
tax compliance behavior. Therefore, from the
explanation above the research hypothesis can be
formulated as follows:
H4: The compliance intention positively influences
tax compliance.
2.6 The Impact of Compliance Intention on
Tax Compliance with The Moderating
Variables of Emotionality And Spirituality
Study [21] proposes an emotional
conceptualization suggesting that individuals may
experience dissonance due to very painful and
intolerable circumstances. Emotions encompass
behavioral reactions, physiological responses,
expressive displays, subjective experiences, and
cognitive processing components [38]. [20]
examined a multidimensional scale measuring
cognitive dissonance, specifically focusing on
cognitive and affective aspects. Cognitive
dissonance may be assessed using one or more
selected indicators representing a construct such as
anxiety [39],[40],[41]. According to [42] anxiety is
a manifestation of an individual’s emotional
turmoil resulting from feeling pressure
(frustration) and inner conflict (conflict) such as
fear, surprise, helplessness, threat, and so on.
Emotional turmoil related to taxation can
undermine tax compliance when taxpayers feel
hurt, such as due to corrupt tax authorities or
mismanagement of tax recipients by the
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government. Emotional responses to sanctions
appear to have positive or negative compliance
implications [43],[44] Emotional responses to
perceptions of fairness have a positive impact on
compliance [45]. Feelings of powerlessness or
perceived unjust treatment might lead to unpleasant
emotions and subsequently disobedience [46]. [25]
revealed that emotionality is very important in
forming compliance, which law enforcement
actions that cause unpleasant emotions have
negative compliance implications. Based on the
explanation provided, the following research
hypothesis may be formulated:
H5 : Emotionality reduces the impact of
compliance intention on tax compliance.
The concept of spirituality is gaining
recognition and being utilised more in behavioral
studies to assess tax compliance. This may be
described as the condition of believing in the power
that controls human behavior, namely God
Almighty to be obeyed, believed in and worshiped.
Spirituality refers to an individual's belief in the
existence of powers which are capable to control
human behavior [12]. In matters of taxation,
spiritual beliefs determine an individual's behavior
in their belief in fulfilling their tax obligations. This
is based on the assumption that an individual's
religious beliefs are integrated into their daily life,
albeit to different degrees.
Empirical studies by [1],[47],[48]
demonstrate that spirituality can enhance tax
compliance behavior. An individual with a high
spiritual level can enhance tax compliance
behavior. [49] said that belief leads to higher levels
of voluntary tax compliance. [50] shown that there
is a negative correlation between tax avoidance and
an individual's personal spirituality. Based on the
information provided, the following research
hypothesis may be formulated:
H6 : Spirituality enhances the impact of
compliance intention on tax compliance.
3. Method
This research focuses on causal
relationships with the aim of examining the impact
of various variables on tax compliance behavior.
This research used main constructs including tax
compliance attitudes, subjective norms, perceived
behavioral control, compliance intention and tax
compliance behavior, as well as moderating
construct including emotionality and spirituality.
Each construct needs to be described into several
dimensions and measured using test indicators.
To assess indicators of tax compliance
attitudes, researchers used instruments from [9] and
[1]. The measuring instrument for the subjective
norm variable is based on the one used by [37] but
has been modified by the researcher to fit the
research location. Indicators from [1] are utilised to
measure the construct of perceived behavioral
control, compliance intention, spirituality, and tax
compliance. Researchers utilised indicators from
[20] to measure emotional constructs. Each
variable is measured using a Linkert scale ranging
from 1 to 5, with the exception of the emotional
variable, which is represented by a dummy, where
0 indicates negative feelings and 1 indicates
positive emotions.
. The population of this research is
individual taxpayers who own enterprises and
MSMEs or work freelance in the East Java
Province region. This research used a convenience
sampling technique due of the unknown number of
taxpayers on Madura Island. There were a total of
177 samples utilised in this research. The survey
was created and distributed by sending
questionnaires directly and online via Google Form
to MSMEs who have NPWPs in Madura from
September to November 2023. The questionnaire in
this research has several sections which the initial
part focusing on the respondent's personal
information. The second section includes questions
to obtain information regarding taxpayer attitudes
towards tax compliance, subjective norms,
perceived behavioral control, taxpayer intentions,
tax compliance, emotionality and spirituality.
Data analysis and hypothesis testing were
carried out using full model Structure Equation
Modeling (SEM) analysis with the assistance of the
Partial Least Square (PLS) program. PLS allows
for the specification of the relationship between the
factor concepts studied and the size of each
construct. Testing the significance of the
relationship between constructs was carried out
using a bootstrap re-sampling procedure which
shows the validity and reliability of the data, as
well as the significance of the relationship between
constructs.
Table 1: Measurement Item
Variable
Questions
Ref.
Attitude
I want to pay less tax than I should
[1],[9]
I create a reserve fund for tax
inspection purposes
I feel that the use of taxes so far
has not been transparent
Subjective
Norms
The family always encourages me
to report all income and deductions
as well as pay all income taxes.
[1],[37]
My parents always encourage me
to report and pay all income taxes
My teacher and kiyai taught me to
always report tax obligations
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My leader always reminds me to
report all tax obligation
If there is a possibility of being
audited by the Tax authorities I will
report all income and pay all
income tax that should be paid
[1]
If there is a possibility of being
sanctioned, I will report all income
and pay all income taxes that
should be paid
If there is a possibility of reporting
by a third party, I will report all
income and pay all income taxes
that should be paid
I feel that I have a tendency to
comply with tax regulations..
[1]
I feel I have the decision to comply
with tax regulations.
I will always comply with tax
regulations.
I feel hopeless
[20]
I feel scared
I feel uncomfortable
I feel frustrated
I feel depressed
I feel empty
I strive to bring religious values to
all aspects of my life.
[1],[47],
[48]
My religious beliefs are what really
lie behind my entire approach to
life
I prioritize religious considerations
which influence my daily affairs.
In the last two years I have
received a Tax Collection Letter
for a fine due to late submission of
the Periodic Tax Return.
[1]
n the last two years I have received
a Tax Collection Letter for a fine
due to late submission of the
Annual Tax Return
In the last two years I have
received a Tax Collection Letter
for interest on late payment of the
tax owed.
In the last two years I have
received a Tax Collection Letter
for fines and interest on the
shortfall in taxes paid
4. Findings
The questionnaire results provided an
overview of the characteristics of the respondents,
highlighting the diversity of MSME Taxpayers on
Madura Island. Table 2 presents details of the
various main attributes of the characteristics used
as research samples. The distribution of educational
levels is as follows: high school/equivalent at 63%,
Bachelor/Diploma at 36%, and master's degree at
1%. 56% of MSME respondents attended the
socialization organized by the Tax Service Office,
16% had studied taxation in college and the
remaining 28% did not attend the socialization or
any other tax seminars.
The employment status of the MSMEs who
are respondents in this research can be classified as
follows: F&B at 55%, craftsman batik at 21%,
animal food business at 14%, and building
materials business at 10%.
Table 2. Characteristics of respondents
Criteria
Group
Amount
%
Education
Senior High
School/equivalent
111
63%
Bachelor/Diploma
64
36%
master's degree
2
1%
Taxation
Knowledge
Socialization by
the Tax Service
Office
99
56%
Taxation Course
28
16%
Not attend any tax
socialization
/seminar
50
28%
Employment
status
F&B
98
55%
Batik Craftmen
38
21%
Bulding material
business
17
10%
Animal food
business
24
14%
It was verified that all these respondents
have an NPWP as a prerequisite for becoming a
taxpayer. They have over 3 years of work
experience and have reported an annual Tax Return
for their business activity.
Measurement model testing is used for the
validity of the research model constructed. The
primary parameters developed are testing construct
validity and construct reliability. The following is
the results of the algorithm iteration.
Table 3. Validity and reliability results
Variables
Item
outer
loading
s
Cronbach
’s Alpha
Comp.
Reliabi
lity
AVE
N*E
NUP*E
1.120
1.000
1.000
1.000
N*S
NUP*S
1.120
1.000
1.000
1.000
Emotionality
E1
E2
E3
E4
E5
E6
0.930
0.878
0.827
0.962
0.939
0.829
0.951
0.960
0.802
Perceived
behavioral
control
KPP1
KPP2
KPP3
0.884
0.855
0.816
0.813
0.888
0.726
Compliance
intention
NUP1
NUP2
NUP3
0.890
0.920
0.935
0.903
0.939
0.838
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Subjective
Norms
NS1
NS2
NS3
NS4
0.857
0.863
0.769
0.770
0.832
0.888
0.666
Tax
compliance
behavior
KP1
KP2
KP3
KP4
0.923
0.928
0.974
0.941
0.958
0.969
0.887
Attitude
S1
S2
S3
0.755
0.707
0.713
0.667
0.769
0.526
Spirituality
R1
R2
R3
0.864
0.795
0.774
0.604
0.736
0.506
Construct validity comprises convergent
validity and discriminant validity. Convergent
validity relates to the principle that the
measurements of a concept are strongly correlated.
Convergent validity is achieved when the scores
obtained from two different instruments that assess
the same underlying concept have a strong
correlation. The results of the convergent validity
test in table 3 show that the outer loading factor
value for all constructs is greater than 0.7, and the
Average Variance Extracted (AVE) for all
constructs is greater than 0.5. This shows that all
variable indicators demonstrate strong convergent
validity.
Reliability refers to the degree of accuracy,
consistency, and precision exhibited by a
measuring instrument when taking measurements.
The reliability test results are displayed in table 3,
indicating that the Cronbach's alpha value above
0.60 and the composite reliability value is over 0.70
for all structures utilized. Thus, it can be concluded
that the instruments used in this research are
reliable.
Table 4. The results of R-square
Dependent variable
R square
Compliance intention
0.532
Tax compliance behavior
0.130
Goodness of fit is utilized in research to
determine the extent of the contribution of
exogenous factors on endogenous variables. From
the R square value in table 4, it shows that the
compliance intention is 0.532, indicating that the
compliance intention can be explained by
exogenous variables such as attitude, subjective
norms and perceived behavioral control by 53%.
However, the remaining 47% is impacted by other
factors not addressed in this research. The tax
compliance behavior as the endogenous variable
has a R square of 0.130, indicating that the
contribution of exogenous variables such as
compliance intention, emotionality and spirituality
only account for 13%, with the remaining impacted
by factors not included in the research model.
Table 5. The results of Hypothesis testing
Hipotesis
Path
Coefficient
t-
statistic
p-
value
Result
H1: S -> NUP
0.126
2.068
0.039
Supported
H2: NS -> NUP
0.467
6.672
0.000
Supported
H3: KPP -> NUP
0.284
3.263
0.001
Supported
H4: NUP -> KP
-0.131
1.542
0.124
Not
Supported
H5: N*E -> KP
-0.219
3.244
0.001
Supported
H6: N*S -> KP
0.041
0.535
0.593
Not
Supported
The results of total effect testing (path
coefficient, t-statistic, p-value) for the structural
model are presented in table 5. Hypothesis 1 (H1)
states that attitude positively influences compliance
intention. The test results show a statistical t value
of 2.068 and a p-value of 0.039 which is less than
0.05. It can be concluded that H1 is supported. This
shows that attitude has a positive effect on the
compliance intention. Hypothesis 2 (H2) states that
subjective norms positively influence compliance
intention. The test findings indicate a statistical t
value of 6.672 with a p-value of 0.000, which is
less than 0.05. This means that H2 is accepted,
indicating that subjective norms have a positive
effect on the compliance intention. Similarly,
Hypothesis 3 (H3) states that perceived behavioral
control positively influences the compliance
intention. The results of the hypothesis test show a
statistical t value of 3.263 and a p-value of 0.001
which is less than 0.05, meaning that H3 is
supported. This finding strongly indicates that
perceived behavioral control has a positive effect
on intention to comply.
On the other hand, Hypothesis 4 (H4)
which suggests that the compliance intention
positively influences tax compliance behavior is
not supported by the test results. The Path
Coefficient has a value of -0.131 with a statistical t
value of 1.542 and a p-value of 0.124 (>0.05),
indicating that the results are not statistically
significant. It demonstrates that the compliance
intention does not affect tax compliance behavior.
Hypotheses 5 (H5) and 6 (H6) examine how
emotionality and spirituality influences moderate
the relationship between compliance intention and
tax compliance behavior. The statistical analysis
indicates that the results of H5 are supported, with
a t statistic of 3.244 and a p-value of 0.001 (<0.05),
demonstrating that emotionality considerably
diminishes the correlation between compliance
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intention and tax compliance behavior. On the
other hand, H6 is not supported since the t statistic
is 0.535 and the p-value is 0.593 (>0.05), indicating
that spirituality does not have a significant
moderating effect on the correlation between
compliance intention with tax compliance behavior.
5. Discussion and Implications
This research intends to analyze the
determinant factors of tax compliance behavior.
These findings highlight the taxpayers' inclination
towards tax compliance behavior. The results of
testing H1, H2, and H3 demonstrate that all have a
significant and positive influence on the
compliance intention. These results explain that the
cognitive elements give taxpayers the tendency to
have the intention of tax compliance. This means
that higher levels of attitude, subjective standards,
and perceived behavioral control are associated to
tax compliance intention.
The findings of the H1 study align with
previous research by [1],[2], [9],[31],[32], all of
whom determined that attitude positively
influences compliance intention. Therefore, the
government should consider taxpayers' attitudes to
form the tax compliance intention by establishing a
tax system that reduce the taxpayers’ desire to pay
a less tax, offer bribes to tax authorities, and create
reserve funds for tax audits.
H2 is consistent with research conducted by
[1],[9],[36], indicating that subjective norms
strongly influence compliance intentions. From the
results of this research, tax authorities should
encourage the community around taxpayers by
approaching parents, colleagues and company
leaders so that they have the enthusiasm to comply
with tax regulations.
This research results align with previous
studies by [1],[9],[11],[13], indicating that
perceived behavioral control positively influences
compliance intention. Therefore, Tax authorities
should establish regulations that simplify the
process for taxpayers to enhance their compliance
intention.
The direct and moderating impacts of
compliance intention on tax compliance behavior
can be explained. First, H4 shows that compliance
intention does not have a significant impact on tax
compliance behavior. The results of this research
are not in line with research conducted by
[1],[18],[37]. H6 also shows that the moderating
effect of spirituality does not enhance the influence
of compliance intention on tax compliance
behavior. These results are not in line with previous
research conducted by [1],[47],[48],[49]. On the
other hand, H5 shows that the emotionality as the
moderating factor weakens the compliance
intention on tax compliance behavior. The results
of this research are in line with research by
[25],[43],[44].
This research emphasizes on the
moderating effect of emotionality (H5), since
emotional turmoil might reduce tax compliance
when taxpayers feel hurt, such as by corrupt tax
authorities or mismanagement of tax recipients by
the government. So that taxpayers' compliance
intention is not reflected in their tax compliance
behavior. The findings of this rsearch contradict the
empirical data presented in prior studies by
[1],[18],[37], which suggested that taxpayers with a
stronger compliance intention tend to exhibit higher
levels of tax compliance behavior. [14] defines
intention as the degree to which an individual is
willing to put in a lot of effort to carry out a
behavior, or the planned effort to exert action to
carry out the behavior.
6. Conclusion
This conclusion is based on empirical data
gathered from studies conducted to address
research questions. This research seeks to assess
how attitudes, subjective norms, and perceived
behavioral control impact the compliance intention,
and to examine how the compliance intention
affects tax compliance behavior. This research also
investigates how emotionality and spirituality
affect the relationship between compliance
intention and tax compliance behavior.
The research results show that attitudes,
subjective norms, and perceived behavioral control
have a significant positive effect on the compliance
intention. This means that taxpayers who have a
more positive attitude towards tax compliance,
have a perception that there is social environmental
pressure on tax compliance, have higher perceived
behavioral control, and have a better perception of
government will have a higher compliance
intention.
Previous research by [1],[18],[37], found a
positive and significant impact on tax compliance
behavior when studying compliance intention. This
research demonstrates contrasting results when
discussing emotionality and spirituality aspects.
These research findings indicate that the
compliance intention does not positively and
significantly impact tax compliance behavior.
When cognitive, emotionality, and spirituality
elements are combined, cognitive dissonance will
emerge which has an impact on an individual's
physiological reaction to achieving consonance.
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The result of this research showed that the
reactions emerged tended to be more emotional
elements. Taxpayers who are hurt and incidents
that cannot be tolerated due to the corruption,
unprofessionalism of the tax authorities, unequal
can weaken the intention of tax compliance.
The findings presented in this research
offer several implications for the government, in
this case, to DJP officers, the public and academia.
The government should prevent tax revenue to be
corrupted, and DJP officers must maintain trust in
not committing bribes using all their authority
which can result in a decrease in taxpayers' trust,
resulting in a decrease in tax compliance behavior.
Society must be able to regulate their cognitive,
emotional and spiritual intelligence to avoid
causing harm to themselves, other people and the
country. In addition, academically, this research
contributes to the development of tax compliance
behavioral research by offering new insights from
behavioral accounting research.
Although this research has made progress,
it is important to recognize its limits. This research
just investigates an individual's general
psychological factors to evaluate the taxpayer
compliance behavior. In future studies, it is
expected that numerous factors will be explored
such as focusing on culture in Indonesia which is
heterogeneous so that it will be able to provide
more comprehensive understanding about taxpayer
compliance behavior.
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