Changes on Indonesia Tax Culture, Is There a Way? Studies through Theory of Planned Behavior

ABSTRACTThe purpose of this study was to identify factors that influence taxpayer compliance that expected can change the tax culture in Indonesia. Respondents of this research are individual taxpayers registered in the KPP Pratama Salatiga. The test results indicate that tax compliance is influenced by intention to comply. While the intention to comply is influenced by the attitude towards tax compliance, subjective norms, and perceived behavioral control. Therefore, efforts to change the tax culture in Indonesia which was originally disobedience turns into tax obedience, need to pay attention on attitudes towards tax compliance, subjective norms, and perceived behavioral control.Keywords: Tax Culture, Tax Compliance, Theory of Planned Behaviour.INTRODUCTION:Self-assessment system that was developed in Indonesia implies higher dependency of tax revenue to the taxpayer compliance. This system gives full credence to taxpayers to actively enforce their tax obligations (voluntary compliance). However, according to Head of Sub Directorate of Taxpayer Compliance and Monitoring, Directorate of Potential, Compliance, and Revenue, Directorate General of Taxation of Ministry of Finance (Kompas, 2011) tax compliance in Indonesia in 2010 just reached 58.16%. Compliance in 2010 has increased significantly compared to compliance in 2008 which only 33.08% and in 2009 at 54.15%. Moreover, the reality shows that the compliance of corporate taxpayers apparently lower than that of individual taxpayer compliance. Compliance of corporate taxpayer in 2010 only 32.66% and individual taxpayer in 2010 had a 61.28% compliance. Carolina et al (2012) even stated that the non-compliance tax in Indonesia is a picture of Tax Culture in Indonesia.Lack of compliance is, of course, encourage the Directorate General of Taxation to constantly strive to improve adherence. However, the efforts made by the Directorate General of Taxation were allegedly not in line with the spirit in the self-assessment system. In an effort to improve compliance, the Directorate General of Taxation emphasized the sanction both administrative sanctions, penalties and interest. This can be seen in the changes Ketentuan Umum dan Tata Cara Perpajakan No. 28 of 2007 that added 11 types of sanctions to taxpayers compared to the sanctions contained in the previous law (Ketentuan Umum dan Tata Cara Perpajakan Tax Procedures No. 16 of 2000) that there were only 12 kinds of sanctions, so that the Ketentuan Umum dan Tata Cara Perpajakan in 2007 there were 23 kinds of sanctions to taxpayers.Currently, the imposition of sanctions is seen as a good solution in an attempt to change the tax culture in Indonesia by creating tax compliance. This is evidenced by previous studies that have shown empirically that the sanctions in taxation can improve compliance (Jatmiko, 2006; Trivedi & Shehata, 2005; Doran, 2009). However, this is not in line with the spirit that created in the self-assessment system because the system's emphasis on self-awareness of the taxpayers to create voluntary compliance not as forced by the system.In changing the culture and creating voluntary tax compliance should be approached psychologically to taxpayers, because associated with things that exist within the taxpayer. In addition, psychological approaches should be taken remembering that in a democracy country (in this case Indonesia) the relationship between taxpayers and tax authorities is a psychological contract (Feld and Frey, 2002). Psychological contract requires an equal relationship between the taxpayer and the tax collector and the success depends on how much taxpayers and tax officers have mutual trust and adhere to this commitment in the psychological contract.One theory is often used as a reference in the field of behavioral research in order to explain why certain people behave is the Theory of Planned Behavior that describes the factors that affect a person's intentions of which (1) attitudes toward behavior (2) subjective norms and (3) perceived behavioral control. …