Managing taxpayer compliance: Reflections on the drivers of willingness to pay taxes in times of crisis

Ismail Khozen and Milla Sepliana Setyowati

Cogent Business & Management, 2023, vol. 10, issue 2, 2218176

Abstract: Throughout the COVID-19 pandemic, the Indonesian government has taken proactive measures to meet the needs of COVID-19 survivors by allocating substantial funds, primarily sourced from tax contributions, to support healthcare and social welfare. This study examines the drivers of willingness to pay taxes of individuals who survived COVID-19 in Greater Jakarta. We performed the study by collecting data from 411 individuals using a combination of traditional paper-based and online survey instruments. The findings indicate that several factors, including the tax system’s complexity, the dissemination of tax information, taxpayer morale, trust in the government, and the perceived worth of COVID-19-related expenditures, play a significant role in influencing individuals’ willingness to pay taxes. On the other hand, factors such as tax penalties, fairness of the tax system, and tax knowledge may not necessarily have a significant impact. However, utilising tax fairness and tax knowledge to predict regulatory compliance yields expected results, indicating a broader requirement for implementing more complex tax procedures and ensuring broader aspects of tax compliance. The results largely validate the main extended behavioural perspectives. The study also offers the theoretical and policy implications of these findings and provides suggestions for future research in the field.

Date: 2023
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DOI: 10.1080/23311975.2023.2218176

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