Spiritual, psychological and social dimensions of taxpayers compliance
| DOI | https://doi.org/10.1108/JFC-03-2020-0045 |
| Published date | 25 May 2020 |
| Pages | 995-1007 |
| Date | 25 May 2020 |
| Author | Gede Adi Yuniarta,I. Gusti Ayu Purnamawati |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
Spiritual, psychological
and social dimensions of
taxpayers compliance
Gede Adi Yuniarta and I. Gusti Ayu Purnamawati
Department of Economic and Accounting, Universitas Pendidikan Ganesha,
Singaraja, Indonesia
Abstract
Purpose –This paper aims to analyze therole of spiritual, psychological and social dimensions of business
taxpayer compliance in micro small and medium enterprises. Tax compliance is an ideal condition for
taxpayers who meet tax regulations and report income accurately and honestly. However, the reality in
Indonesia shows the voluntarycompliance level to the community is still low. This is reflected in the amount
of state tax revenuecompared to gross domestic product.
Design/methodology/approach –The locationof the study was conducted on taxpayers of micro small
and medium enterprises in Bali Province. The type of data used in this study is quantitative data with
primary data sources in the form of questionnairesto 100 business taxpayers. Data analysis uses multiple
linear regression.
Findings –The results showed that money ethics(as a psychologicaldimension) and tax socialization (as a
social dimension),did not significantly influence tax compliance. Karma phala (as a spiritual dimension)has a
positive and significant effect on business taxpayers’compliance. When an individual’s behavior has
reflected commitmentin their religion philosophy, it is expected to be a control of deviant behavior and good
behavior in taxation obligations. In the future, it will be able to prevent deviations from perversion and
universalundesirable.
Research limitations/implications –Research is only limited to entrepreneurs who are in the micro
small and mediumbusiness sector, so it is still lackingin representing the public opinions, especiallybusiness
people in businesses whose scope is wider. In addition, the variables used in this study are still not
maximized,one can add more variables, one of which is tax modernization.
Originality/value –Consideration of spiritualitydimension use because it is part of individual character
formation in attitude and behavior.The psychological and spiritual dimensions include the humanbehavior
theories development that integrate aspects of spirituality to shape human behavior as a whole with a
comprehensive perspective,especially religious philosophy through theenforcement of karma phala laws to
realize complianceand fulfillment of tax obligations with full responsibility.
Keywords Taxpayer, Spirituality, Business, Psychological, Social
Paper type Research paper
Introduction
Taxation has been used as the main policy instrument for transferring resources to the
public sector. The state needs tax revenueto fund social and economic programs, as well as
to provide goods and also provide public services. In 2018, the contribution of the MSME
sector was IDR 5.8tn of the total tax revenue of IDR 1,315.9tn.The MSME tax payment as of
August 2019 was only IDR 4.84tn, a decrease of 21.8% from the same period in the previous
year of IDR 6.19tn. In the Province of Bali, for Micro, Small and Medium Enterprises is
JEL classification –H24, H26, H27
Dimensions of
taxpayers’
compliance
995
Journalof Financial Crime
Vol.27 No. 3, 2020
pp. 995-1007
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2020-0045
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