THE EFFECT OF ATTITUDE TOWARDS E-TAX SYSTEMS, ADOPTION OF E-TAX SYSTEMS, ISOMORPHIC FORCES, AND TRUST IN TAX AUTHORITY TO TAX COMPLIANCE (CASE STUDY ON SMES LISTED IN KPP PRATAMA MEDAN PETISAH)
Keywords:
SME, Attitude Towards E-Tax Systems, Trust In Tax Authority, Adoption Of E-Tax Systems, Isomorphic Forces & Tax Compliance
Abstract
This study aims to investigate whether attitude towards e-tax systems, trust in tax authority, and adoption of e-tax systems could influence voluntary tax compliance and whether adoption of e-tax systems and the isomorphic forces could increase enforced tax compliance. The sample was taken from 152 SMEs taxpayer registered in KPP Pratama Medan Petisah and processed using IBM SPSS Statistics 25, then it was analyzed by using multiple regression tests. The findings showed that attitude towards electronic tax system, trust in the tax authority, and adoption of electronic tax systems have a positive significant influence on voluntary tax compliance. The adoption of e-tax systems and isomorphic forces also has a positive significant influence on enforced tax compliance.
References
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[40] Kirchler, E., & Wahl, I. (2010). Tax compliance inventory TAX-I: Designing an inventory for surveys of tax compliance. Journal of Economic Psychology, 31 (3), 331-346.
[41] Sarjono, H., & Julianita, W. (2011). SPSS vs LISREL. Jakarta: Salemba Empat.
[2] Inasius, F. (2015). Tax compliance of small and medium enterprises: Evidence from Indonesia. Accounting & Taxation, 7 (1), 67–73.
[3] Kamleitner, B. K. (2012). Tax compliance of small business owners: A review. International Journal of Entrepreneurial Behaviour & Research, 18 (3), 350-351.
[4] Data UMKM. (2018). Retrieved from Kementrian Koperasi dan Usaha Kecil dan Menengah Republik Indonesia: http://www.depkop.go.id/data-umkm
[5] Kogler, C., Batrancea, L., Nichita, A., Pantya, J., Belianin, A., & Kirchle, E. (2013). Trust and power as determinants of tax compliance: Testing the assumptions of the slippery slope framework in Austria, Hungary, Romania, and Russia. Journal of Economic Psychology, 34,169-180.
[6] Braithwaite, V. (2003). Dancing with tax authorities: Motivational postures and non-compliant actions. In V. B. (Ed), Taxing democracy (pp. 15-39). England: Ashgate Publishing Ltd.
[7] Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus voluntary tax compliance: The ‘‘slippery slope’’ framework. Journal of Economic Psychology, 29 (2), 210-225.
[8] Sadress, N., Bananuka, J., Orobia, L., & Opiso, J. (2019). Antecedents of Tax Compliance of Small Business Enterprises: a developing country perspective. International Journal of Law and Management, 61 (1), 24-44.
[9] Night, S., & Banukana, J. (2019). The mediating role of adoption of an electronic tax system in the relationship between attitude towards electronic tax system and tax compliance. Journal of Economics, Finance and Administrative Science, 25 (49), 73-88.
[10] Zaidi, S. K., Henderson, C. D., & Gupta, G. (2017). The moderating effect of culture on e-filing taxes: evidence from India. Journal of Accounting in Emerging Economies, 7 (1), 134-152.
[11] Nkundabanyanga, S. K., Musimenta, D., Akankunda, B., Muhwezi, M., & Nalukenge, I. (2017). Tax compliance of small and medium enterprises: a developing country perspective. Journal of Financial Regulation and Compliance, 25 (2), 149-175.
[12] Faizal, S. M., Palil, M. R., Maelah, R., & Ramli, R. (2017). Perception on justice, trust, and tax compliance behavior in Malaysia. Kasetsart Journal of Social Sciences, 38 (3), 226-232.
[13] Kastlunger, B., Kirchler, E., Lozza, E., & Schabmann, A. (2013). Powerful authorities and trusting citizens: The Slippery Slope Framework and tax compliance in Italy. Journal of Economic Psychology, 34 (C), 36-45.
[14] Inasius, F. (2019). Voluntary and Enforced Tax Compliance: Evidence from Small and Medium-Sized Enterprises in Indonesia. Advances in Taxation, 26, 99-111.
[15] Ajzen, I., & Fishbein, M. A. (1975). Belief, Attitude, Intention, and Behaviour: An Introduction to Theory and Research. Reading: MA: Addison-Wesley.
[16] Orobia, L. A., Padachi, K., & Munene, J. C. (2016). Why some small businesses ignore austere working capital management routines. Journal of Accounting in Emerging Economies, 6 (2), 94-110.
[17] Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behavior. Englewood Cliffs: NJ: Prentice-Hall.
[18] Lujja, S., Mohammad, M. O., & Hassan, R. (2016). Modeling public behavioral intention to adopt Islamic banking in Uganda: The theory of reasoned action. International Journal of Islamic and Middle Eastern Finance and Management, 9 (4): 583-600.
[19] Rana, N., Dwivedi, Y. K., Williams, M. D., & Lal, B. (2015). Citizens’ adoption of an electronic government system: towards a unified view. Information Systems Frontiers, 19 (3), 549-568.
[20] Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13 (3), 319-340.
[21] Sondakh, J. J. (2017). Behavioral Intention to Use E-Tax Service System: An Application of Technology Acceptance Model. European Research Studies Journal, 20 (2), 48–64.
[22] DiMaggio, J., & Powell, W. (1983). The iron cage revisited: institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48 (2), 147-160.
[23] Hoffman, A. J. (1999). “Institutional Evolution Change: Environmentalism and the U.S. Chemical Industry”. Academy of Management Journal, 42 (4), 351-371.
[24] Meyer, J., & Rowan, B. (1977). Institutionalized Ceremonies: Formal Structure as Myth and Ceremony. American Journal of Sociology, 83 (2), 340-363.
[25] Nkwe, N. (2013). Tax Payers’ Attitude and Compliance Behaviour among Small Medium Enterprises (SMEs) in Botswana. Business and Management Horizons, 1 (1), 113-137.
[26] Zahid, H., & Din, B. H. (2019). Determinants of Intention to Adopt E-Government Services in Pakistan: An Imperative for Sustainable Development. Resources, 8 (3), 128.
[27] Ayres, I., & Braithwaite, J. (1992). Responsive regulation: Transcending the deregulation debate. New York: Oxford University Press.
[28] Muehlbacher, S. K. (2011). Voluntary versus enforced tax compliance: Empirical evidence for the "slippery slope" framework. European Journal of Law Economic, 32, 89-97.
[29] Ali, A., & Ahmad, N. (2014). Trust and Tax Compliance Among Malaysian Working Youth. International Journal of Public Administration, 37, 389–396.
[30] Haryani, S. M. (2015). The behavioral intention of taxpayers towards online tax filing in India: An empirical investigation. Journal of Business & Financial Affairs, 4 (1), 70-76.
[31] Lubua, E. W. (2014). Influencing Tax Compliance in SMEs through the use of ICTs. International Journal of Learning, Teaching and Educational Research, 2 (1), 80-90.
[32] Djajanti, A. (2020). Developing The Voluntary Taxpayer Compliance: The Scale Of The Tax Authority’s Power, Trust And The Fairness of The Tax System. Indonesian Journal of Business and Entrepreneurship, 6 (1), 86.
[33] Azmi, A. A., Kamarulzaman, Y., & Hamid, N. H. (2012). Perceived Risk and the Adoption of Tax E-Filing. World Applied Sciences Journal, 20 (4), 532-539.
[34] Hawley, A. (1968). Human ecology. In D. L. (ed.), International Encyclopedia of the Social Sciences (pp. 328-337). New York: MacMillan.
[35] Hofmann, E., Gangl, K., Kirchler, E., & Stark, J. (2014). Enhancing Tax Compliance through Coercive and Legitimate Power of Tax Authorities by Concurrently Diminishing or Facilitating Trust in Tax Authorities. Law and Policy, 36 (3), 290-313.
[36] Taylor, S., & Todd, P. A. (1995). Understanding Information Technology Usage: A Test of Competing Models. Information System Research, 6 (2), 144-176.
[37] Kastlunger, B. L. (2013). Powerful authorities and trusting citizens: The Slippery Slope Framework and tax compliance in Italy. Journal of Economic Psychology, 34, 36–45.
[38] Hartner, M., Rechberger, S., & Kirchler, E. (2009). SIT-Tax: European transfer payments: Fragebogen, Datenerhebung und Stichprobe. Working paper 3, Universita¨t Wien. Retrieved from SIT-Tax: European transfer payments: Fragebogen,.
[39] Liang, H., Saraf, N., Hu, Q., & Xue, Y. (2007). Assimilation of Enterprise Systems: The Effect of Institutional Pressures and the Mediating Role of Top Management. MIS Quarterly, 31 (1), 59-87.
[40] Kirchler, E., & Wahl, I. (2010). Tax compliance inventory TAX-I: Designing an inventory for surveys of tax compliance. Journal of Economic Psychology, 31 (3), 331-346.
[41] Sarjono, H., & Julianita, W. (2011). SPSS vs LISREL. Jakarta: Salemba Empat.
Published
2021-07-07
How to Cite
Manalu, P., Kusumastati, W., & Safiq, M. (2021). THE EFFECT OF ATTITUDE TOWARDS E-TAX SYSTEMS, ADOPTION OF E-TAX SYSTEMS, ISOMORPHIC FORCES, AND TRUST IN TAX AUTHORITY TO TAX COMPLIANCE (CASE STUDY ON SMES LISTED IN KPP PRATAMA MEDAN PETISAH). Jurnal Inovasi Penelitian, 2(2), 699-710. https://doi.org/10.47492/jip.v2i2.741
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