The Moderating Role of Taxation Technology on the Relationship between Tax Rates and Taxpayer Perceptions of Tax Evasion

M Doni Permana  Putra; Ketut Elly Sutrisni

doi:10.38043/jiab.v10i2.7127

Authors

M Doni Permana Putra Universitas Mahasaraswati Denpasar
Ketut Elly Sutrisni Universitas Pendidikan Nasional

DOI:

https://doi.org/10.38043/jiab.v10i2.7127

Keywords:

tax evasion, tax rates, taxation technology, theory of planned behavior

Abstract

This study investigates the effect of tax rates on taxpayer perceptions of tax evasion and examines the moderating role of taxation technology in this relationship, grounded in the Theory of Planned Behavior. Employing a quantitative approach, this research collected primary data through questionnaires from a sample of 100 individual taxpayers at KPP Pratama Denpasar Barat. The data were analyzed using Moderated Regression Analysis (MRA). The results indicate that tax rates have a significant positive effect on the perception of tax evasion, suggesting higher rates increase the perceived viability of evasion. However, the study's primary finding reveals that taxation technology significantly weakens this positive relationship, acting as a negative moderator. These findings suggest that while higher tax rates may increase the incentive to evade, a robust technological infrastructure serves as an effective deterrent by increasing the perceived difficulty and risk of evasion. As a key policy implication, these results strongly advise authorities to prioritize and accelerate investment in the digital transformation of tax administration, as this technology is a critical tool for enhancing voluntary compliance by mitigating the perceived incentives for evasion.

Downloads

Download data is not yet available.

References

Abit, M. C. A. J., Ibrahim, Z., & Baharum, Z. (2023). The Influence of Personal and Professional Ethics of Tax Agents on Their Perception of Tax Evasion. Asian Journal of Accounting Perspectives, 1-25. https://doi.org/10.22452/ajap.vol16no1.1

Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211. https://doi.org/10.1016/0749-5978(91)90020-T

Allingham, M. G., & Sandmo, A. (1972). Income tax evasion: A theoretical analysis. Journal of public economics, 1(3-4), 323-338. https://doi.org/10.1016/0047-2727(72)90010-2

Amin, A., & Mispa, S. (2020). Dimension of Taxpayer Perception Regarding Tax Evation Actions. Point of View Research Accounting and Auditing, 1(3), 25-32. https://doi.org/10.47090/povraa.v1i3.25

Deb, R., & Chakraborty, S. (2017). Tax perception and tax evasion. IIM Kozhikode Society & Management Review, 6(2), 174-185. https://doi.org/10.1177/2277975217701363

Dissanayake, N., & Damayanthi, B. W. R. (2024). Factors influencing tax evasion: The perception of Sri Lankan medium-sized taxpayers. Vidyodaya Journal of Humanities and Social Sciences, 9(01). https://doi.org/10.31357/fhss/vjhss.v09i01.01

Hakki, T. W., Simanungkalit, J., & Siat, M. (2023). The Antecedents Of Tax Evasion Perception With A Religiousity As Moderation. Kajian Akuntansi, 24(2), 325-335. https://doi.org/10.29313/kajian_akuntansi.v24i2.2526

Jun, B. W., & Yoon, S. M. (2018). Taxpayers religiosity, religion, and the perceptions of tax equity: Case of South Korea. Religions, 9(11), 333. https://doi.org/10.3390/rel9110333

Kassa, E. T. (2021). Factors influencing taxpayers to engage in tax evasion: evidence from Woldia City administration micro, small, and large enterprise taxpayers. Journal of innovation and entrepreneurship, 10(1), 8. https://doi.org/10.21203/rs.3.rs-87257/v1

Lee, I. (2018). Income Tax Evasion Responses to Tax Rate and Tax Enforcement Rate. Advances in Economics and Business, 6(4), 269-79. https://doi.org/10.13189/aeb.2018.060407

Ludigdo, U., Pusposari, D., & Puspita, A. F. (2023). Perception of Prospective Taxpayers: Tax Ethics and Tax Evasion. Akuntansi: Jurnal Akuntansi Integratif, 9(2), 157-174. https://doi.org/10.29080/jai.v9i2.1459

Muceku, H., & Balliu, T. (2017). The Albanian Taxpayers' Perception of the Current Tax System and Its Impact on Informal Economy, Tax Evasion and Tax Avoidance. Mediterranean Journal of Social Sciences, 8(1), 470-477. https://doi.org/10.5901/mjss.2017.v8n1p470

Nabilah, A. L. P. (2023). Effect of Tax Discrimination, Love of Money, and Possibility of Detecting Fraud on the Perceptions of Tax Evasion. Research Trend in Technology and Management, 1(3), 154-165. https://doi.org/10.56442/rttm.v1i3.32

Ogungbade, O. I., Enitan, A., & Adekoya, A. C. (2021). Tax Awareness, Taxpayers Perceptions and Attitudes and Tax Evasion in Informal Sector of Ekiti State, Nigeria. International Journal of Financial Research, 12(5), 24-40. https://doi.org/10.5430/ijfr.v12n5p24

Permana, I., & Susianto, T. (2020). The Effect of Tax Socialization and Tax Rates to Restaurant Taxpayable Compliance in The City of Sukabumi. Digital Economic, Management and Accounting Knowledge Development (DEMAnD), 2(2), 28-50. https://doi.org/10.46757/demand.v2i2-december.121

Pui Yee, C., Moorthy, K., & Choo Keng Soon, W. (2017). Taxpayers perceptions on tax evasion behaviour: an empirical study in Malaysia. International Journal of Law and Management, 59(3), 413-429. https://doi.org/10.1108/ijlma-02-2016-0022

Ramli, I., & Arifin, A. Z. (2020, May). Taxation System, Tax Sanctions, Justice, Discrimination, And Probability Of Cheat Detect Impact On Taxpayer Perception Regarding Tax Evasion Ethics (Study At Primary Kpp In Yogyakarta). In Tarumanagara International Conference On The Applications Of Social Sciences And Humanities (Ticash 2019) (pp. 528-533). Atlantis Press. https://doi.org/10.2991/assehr.k.200515.089

Rantelangi, C., & Majid, N. (2017). Factors that influence the taxpayers' perception on the tax evasion. In Mulawarman International Conference on Economics and Business (MICEB 2017) (pp. 219-225). Atlantis Press. https://doi.org/10.2991/miceb-17.2018.34

Shafika, N., & Fakhroni, Z. (2020). Antecedents And Determinants Of Taxpayers Perceptions Of Tax Evasion Behavior. Jurnal Reviu Akuntansi Dan Keuangan, 10(3), 553-571. https://doi.org/10.22219/jrak.v10i3.13276

Tarmidi, D., Suryati, A., & Purwaningsih, S. (2020). Tax Evasion: Impact of Internal and External Factors, An Individual Tax Payer Perception. International Journal of Academic Research in Business and Social Sciences, 10(5), 675-685. https://doi.org/10.6007/ijarbss/v10-i5/7240

Terzic, S., Dzakula, M., & Muminovic, E. (2020). Tax Evasion in Bosnia and Herzegovina: Perception From Taxpayers and Tax Inspectors. Eurasian Journal of Economics and Finance, 8(1), 24-37. https://doi.org/10.15604/ejef.2020.08.01.003

Widati, S., Permatasari, M. D., & Fiana, A. (2023). Analysis Of Individual Taxpayer's Perception Of Tax Evasion. DEAL: International Journal of Economics and Business, 1(01), 38-46. https://doi.org/10.37366/deal.v1i01.2685