Tax Compliance: Respectful Treatment and Institutional Image

• Main Authors: DEWI PRASTIWI, 049816108, I Made Narsa, -, Erlina Diamastuti, -
• Format: Article PeerReviewed
• Language: English; English; Indonesian
• Published: Sekolah Tinggi Ilmu Ekonomi Perbanas Surabaya 2021
• Subjects: H Social Sciences; HJ Public Finance; HJ2240-5908 Revenue. Taxation. Internal revenue
• Online Access: https://repository.unair.ac.id/119508/1/306-Artikel_IMadeNarsa_Tax-compliance_Respectful.pdf; https://repository.unair.ac.id/119508/2/306-Similarity_IMadeNarsa_Tax-compliance_Respectful.pdf; https://repository.unair.ac.id/119508/3/306-IMadeNarsa_KualitasKaril.pdf; https://repository.unair.ac.id/119508/; https://journal.perbanas.ac.id/index.php/tiar/article/view/2471; http://dx.doi.org/10.14414/tiar.v11i2.2471
• Institution: Universitas Airlangga

This study aims to analyze the effect of respectful treatment and institutional image on tax compliance. This study used a survey method of individual non-employee taxpayers at the Primary Tax Office (KPP) in the Regional Office of the DJP I, East Java, totaling 304 respondents. The data were analyzed using Structural Equation Modeling (SEM). The research findings showed that the strength of Crowding Theory and Trust Theory, and that the extrinsic intervention in the form of reward and punishment cannot always increase taxpayer compliance. Instead, a respectful approach and goodwill, ability and integrity of tax authorities in solving tax problems of taxpayers can increase tax compliance. This is supported by the results of the study that: 1) respectful treatment can improve institutional image; 2) respectful treatment can increase tax compliance; 3) institutional image can increase tax compliance. The implication of research results, respectful treatment of tax officers can be used to improve the image of the DJP and taxpayer compliance.