Spiritual, psychological and social dimensions of taxpayers compliance

Gede Adi Yuniarta and I. Gusti Ayu Purnamawati

Journal of Financial Crime, 2020, vol. 27, issue 3, 995-1007

Abstract: Purpose - This paper aims to analyze the role of spiritual, psychological and social dimensions of business taxpayer compliance in micro small and medium enterprises. Tax compliance is an ideal condition for taxpayers who meet tax regulations and report income accurately and honestly. However, the reality in Indonesia shows the voluntary compliance level to the community is still low. This is reflected in the amount of state tax revenue compared to gross domestic product. Design/methodology/approach - The location of the study was conducted on taxpayers of micro small and medium enterprises in Bali Province. The type of data used in this study is quantitative data with primary data sources in the form of questionnaires to 100 business taxpayers. Data analysis uses multiple linear regression. Findings - The results showed that money ethics (as a psychological dimension) and tax socialization (as a social dimension), did not significantly influence tax compliance. Karma phala (as a spiritual dimension) has a positive and significant effect on business taxpayers’ compliance. When an individual's behavior has reflected commitment in their religion philosophy, it is expected to be a control of deviant behavior and good behavior in taxation obligations. In the future, it will be able to prevent deviations from perversion and universal undesirable. Research limitations/implications - Research is only limited to entrepreneurs who are in the micro small and medium business sector, so it is still lacking in representing the public opinions, especially business people in businesses whose scope is wider. In addition, the variables used in this study are still not maximized, one can add more variables, one of which is tax modernization. Originality/value - Consideration of spirituality dimension use because it is part of individual character formation in attitude and behavior. The psychological and spiritual dimensions include the human behavior theories development that integrate aspects of spirituality to shape human behavior as a whole with a comprehensive perspective, especially religious philosophy through the enforcement of karma phala laws to realize compliance and fulfillment of tax obligations with full responsibility.

Keywords: Taxpayer; Spirituality; Business; Psychological; Social; H24; H26; H27 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-03-2020-0045

DOI: 10.1108/JFC-03-2020-0045

Access Statistics for this article

Journal of Financial Crime is currently edited by Dr Li Hong Xing and Prof Barry Rider

More articles in Journal of Financial Crime from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().