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http://dx.doi.org/10.13106/jafeb.2021.vol8.no5.0717

The Effect of Corporate Taxpayer's Compliance with Tax Audit: A Case Study in Indonesia  

MUKIYIDIN, Mukiyidin (Faculty of Economics and Business, Universitas Sumatera Utara)
MUDA, Iskandar (Faculty of Economics and Business, Universitas Sumatera Utara)
KHOLIS, Azizul (Faculty of Economics and Business, Universitas Negeri Medan)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.5, 2021 , pp. 717-725 More about this Journal
Abstract
The study answers the awareness of taxpayers, tax authority services, tax socialization, tax collection, and account representative's controlling (monitoring) for compliance of the corporate Taxpayer. The study also examines the moderating effect of the tax audit to control the corporate Taxpayer's compliance. In this study, the method of non-probability sampling was used. The research data was gathered by handing out questionnaires at the Medan Kota Tax Office in Indonesia. The SEM method was used for data analysis through Lisrel 8.8 program. The findings of the study concluded that tax collection has a significant positive effect on corporate taxpayer's compliance and Tax audit moderates the relation between tax authority services and the account representative's controlling (monitoring) with corporate taxpayers' compliance. Also, tax socialization and account representative's controlling (monitoring) have a positive effect on the corporate taxpayer's compliance. In contrast, variables of taxpayer's awareness and tax authority services have a negative impact. Furthermore, tax audit does not moderate the relation between taxpayer awareness, tax socialization, and tax collection with the corporate taxpayer's compliance at Medan Kota Tax Office Indonesia. The findings suggest the Indonesian policymakers and tax authorities must create corporate legislation to handle compliance by leveraging the loopholes in tax legislation law and the tax audit system.
Keywords
Corporate Taxpayer's Compliance; Tax Audit; Taxpayer's Awareness; Tax Authority; Indonesia;
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