THE EFFECT OF TAX AUDITS AND TAX AWARENESS CAMPAIGNS ON THE ENHANCEMENT OF REGIONAL TAX REVENUE IN MAKASSAR CITY WITH PBJT TAXPAYER COMPLIANCE AS AN INTERVENING VARIABLE

Muhammad  Zulfiqar; Muspa Muspa; Maryam  Nurdin

doi:10.53067/ije3.v6i2.492

Authors

Muhammad Zulfiqar Institut Bisnis dan Keuangan Nitro
Muspa Muspa Institut Bisnis dan Keuangan Nitro
Maryam Nurdin Institut Bisnis dan Keuangan Nitro

DOI:

https://doi.org/10.53067/ije3.v6i2.492

Keywords:

Tax Audits, Tax Awareness Campaigns, PBJT Taxpayer Compliance, Local Tax Revenue., Audit Pajak, Kampanye Kesadaran Pajak, Kepatuhan Wajib Pajak PBJT, Pendapatan Pajak Lokal.

Abstract

This study aims to analyze the effect of tax audits and tax awareness campaigns on the increase in regional tax revenue, with compliance by taxpayers of the Specific Goods and Services Tax (PBJT) as an intervening variable at the Makassar City Regional Revenue Agency. The research approach utilized a quantitative method with Structural Equation Modeling–Partial Least Squares (SEM-PLS) analysis using the SmartPLS 4 application. The research sample comprised 137 PBJT taxpayers registered with the Makassar City Regional Revenue Agency. The results indicate that tax audits do not have a significant effect on PBJT taxpayers' compliance. Conversely, tax awareness campaigns have a positive and significant effect on PBJT taxpayers' compliance. Neither tax audits nor tax awareness campaigns demonstrate a significant direct effect on the increase in local tax revenue. However, PBJT taxpayers' compliance was found to have a positive and significant effect on the increase in local tax revenue. Mediation analysis revealed that PBJT taxpayers' compliance does not mediate the effect of tax audits on local tax revenue. Still, it does mediate the effect of tax awareness campaigns on the increase in local tax revenue. These findings suggest that strategies to optimize local tax revenue should focus on improving taxpayer compliance through tax education, effective service delivery, and the strengthening of the local tax administration system.

Downloads

Download data is not yet available.

References

Ajzen, I. (2024). The theory of planned behavior: Selected recent advances and applications. In M. Conner & P. Norman (Eds.), Predicting and changing health behavior (4th ed.). Open University Press.

Alm, J., & Torgler, B. (2024). Tax morale and voluntary tax compliance: Recent evidence and policy implications. Journal of Economic Surveys, 38(1), 122–147. https://doi.org/10.1111/joes.12589

Bird, R., & Zolt, E. M. (2023). Taxation and development: The weakest link? Edward Elgar Publishing.

Bobek, D. D., Hageman, A. M., & Kelliher, C. F. (2023). Applying the Theory of Planned Behavior to taxpayer compliance: A contemporary review. Journal of the American Taxation Association, 45(2), 77–98. https://doi.org/10.2308/JATA-2022-018

Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Lawrence Erlbaum Associates.

Creswell, J. W., & Creswell, J. D. (2023). Research design: Qualitative, quantitative, and mixed methods approaches (6th ed.). Sage Publications.

Gangl, K., Hofmann, E., & Kirchler, E. (2023). Cooperative tax compliance and the slippery slope framework: Recent developments. Current Psychology, 42(18), 15741–15753. https://doi.org/10.1007/s12144-022-02898-9

Hair, J. F., Hult, G. T. M., Ringle, C. M., Danks, N. P., & Ray, S. (2022). Partial least squares structural equation modeling (PLS-SEM) using R: A workbook. Springer. https://doi.org/10.1007/978-3-030-80519-7

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2024). A primer on partial least squares structural equation modeling (PLS-SEM) (4th ed.). Sage Publications.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115–135. https://doi.org/10.1007/s11747-014-0403-8

International Monetary Fund. (2023). Tax administration diagnostic assessment tool (TADAT): Field guide. International Monetary Fund.

Kurniawati, D., Prasetyo, E., & Rahman, A. (2022). The role of taxpayer awareness and tax socialization on regional tax compliance. International Journal of Economics and Business Research, 24(3), 321–334.

Kurniawati, S., Wijaya, R., & Hidayat, M. (2023). Digital tax education and taxpayer compliance behavior: Evidence from local taxation. Journal of Accounting and Taxation, 15(2), 45–56.

OECD. (2023). Tax administration 2023: Comparative information on OECD and other advanced and emerging economies. OECD Publishing. https://doi.org/10.1787/74d162b6-en

Prabowo, A., & Yuliana, R. (2022). The effect of tax audit and taxpayer compliance on local tax revenue. Journal of Accounting Research, Organization and Economics, 5(2), 120–132.

Prasetyo, A., & Rahmawati, N. (2023). Effectiveness of tax audit implementation in increasing local government revenue. Journal of Public Administration and Governance, 13(1), 77–89.

Putra, I. M., & Dewi, N. K. (2022). The influence of tax audit, tax awareness, and tax services on taxpayer compliance. International Journal of Business and Management Invention, 11(4), 25–34.

Rahayu, S. K. (2020). Perpajakan: Konsep, sistem dan implementasi. Rekayasa Sains.

Rahayu, S., & Sari, D. (2022). Tax socialization and taxpayer compliance: Evidence from local government taxation. Journal of Accounting Research, Organization and Economics, 5(1), 1–12.

Rahman, A., Hidayat, T., & Wibowo, S. (2023). Taxpayer compliance as determinant of regional tax revenue optimization. Journal of Economics, Finance and Accounting Studies, 5(2), 89–101.

Republik Indonesia. (2022). Undang-Undang Republik Indonesia Nomor 1 Tahun 2022 tentang Hubungan Keuangan antara Pemerintah Pusat dan Pemerintahan Daerah. Sekretariat Negara Republik Indonesia.

Sarstedt, M., Hair, J. F., Ringle, C. M., & Howard, M. C. (2024). Estimating and assessing higher-order constructs in PLS-SEM. Australasian Marketing Journal, 32(1), 100498. https://doi.org/10.1016/j.ausmj.2023.100498

Sekaran, U., & Bougie, R. (2023). Research methods for business: A skill-building approach (9th ed.). John Wiley & Sons.

Saputra, R., & Nurhayati, N. (2022). Analysis of tax audit effectiveness toward local tax revenue. Journal of Accounting and Investment, 23(3), 450–463.

Sari, P., & Nugroho, A. (2023). Tax education, taxpayer compliance, and regional tax revenue: A mediation analysis. Journal of Finance and Accounting Research, 8(1), 55–68.

Susanti, E., & Arifin, Z. (2023). Tax socialization and taxpayer compliance in improving local government revenue. International Journal of Financial Studies, 11(4), 120–134.

Torgler, B. (2023). Tax morale and tax compliance: Recent developments and future directions. eJournal of Tax Research, 21(2), 143–162.

Utami, W., & Kurniawan, R. (2022). The effect of taxation socialization on taxpayer behavior. Journal of Economics and Business, 5(3), 211–223.

Wulandari, A., Setiawan, D., & Pratama, R. (2023). Tax audit quality and compliance behavior in regional taxation. Journal of Accounting and Public Policy, 12(2), 99–113.

World Bank. (2024). Public finance review: Strengthening local government revenue mobilization. World Bank. https://doi.org/10.1596/978-1-4648-2106-7

Yusuf, M., & Rahman, A. (2024). The effect of tax socialization, tax audits, and taxpayer compliance on local tax revenue. Journal of Infrastructure, Policy and Development, 8(10), 7689. https://doi.org/10.24294/jipd.v8i10.7689