Scientax: Jurnal Kajian Ilmiah Perpajakan Indonesia

Does government effectiveness moderate the relationship between regulatory quality and tax complexity?

2023-03-24T13:55:38+07:00

This research aims to analyze the relationship between regulatory quality and tax complexity worldwide and whether this relationship is moderated by government effectiveness. The hypothesis is that robust regulations would promote simplicity and efficiency in the tax system. This study incorporates 100 countries as a sample, derived from the tax complexity index developed in 2016. Further, a moderated regression using SPSS PROCESS Macro is used to test the hypotheses and generate findings. This study shows that regulatory quality relates to the tax complexity in the countries and the effectiveness of the government indeed moderates this relationship. The tax authority, the Directorate General of Taxes, may use the findings to address the importance of the quality of regulations in shaping an efficient tax system.

Evaluation of corporate income tax rates reduction policy applied to the general equilibrium approach and the degree of self-financing method

2023-08-02T09:25:31+07:00

The reduction of the corporate income tax rate from 25% to 22% in 2020 is one of the Indonesian government's initiatives to hasten the country's economic recovery in response to the COVID-19 pandemic. In this paper, we aim to evaluate those policies’ impact on other tax revenue policies. According to our estimation using the General Equilibrium approach and the Degree of Self Financing (DSF) method, the measurement results demonstrate that nearly a quarter of 93,8% from the total lost tax revenue resulting from the policy of lowering the corporate income tax rate will be made up for by an increase in other tax revenues in the form of: 17.55 percent of individual income tax revenue, 5.94 percent of VAT, and 0.000197 percent of Tax on Deposits. However, given that only a quarter of 93,8% from the lost corporate income tax revenue will be recovered, the government's decision to keep the corporate income tax rate at 22 percent in 2022 and beyond is still reasonable.

Determinants of tax morale

2023-01-31T07:29:55+07:00

One of the reasons Indonesia's tax ratio has yet to reach its target is the informal sector and tax avoidance. The individual's desire to pay or avoid taxes is related to tax morals. This study aims to determine the effect of trust in the government, trust in tax administration, national pride, the likelihood of being caught in tax evasion efforts, and the level of punishment on tax morale. The research object is the owner of the micro, small, and medium enterprises (MSMEs) in Java. The research approach used is quantitative research. The data used are primary data consisting of 395 respondents' answers collected. Data analysis used the Ordinary Least Squares (OLS) method. The test results state that trust in the government, trust in tax administration, national pride, likelihood of being caught in tax evasion efforts, and the level of punishment simultaneously and partially have a significant positive effect on tax morale.

Do operational risks and credit risks make banks more aggressive to avoid taxes?

2023-07-21T10:25:32+07:00

This study aims to analyze the relationship between credit risk and operational risk on tax avoidance aggressiveness in banking companies in Indonesia for the period 2004-2021. The total observations in the study amounted to 271 samples. The testing method in this study uses multiple regression analysis with panel data. In general, the results show that Non-Performing Loans (NPL) is positively related to to Effective Tax Rates (ETR); in this case, an increase in NPL does not make companies more aggressive in tax avoidance. While Business Operating Profitability (BOPO) is negatively related ETR, in this case, an increase in BOPO makes the company more aggressive in tax avoidance. The results show significant differences in the effect of NPL and BOPO on ETR as a proxy for tax avoidance aggressiveness between the models analyzed. Although NPL shows a significant positive relationship with ETR in one of the first models, the relationship is not significant in the other models. Meanwhile, BOPO has an insignificant negative relationship with ETR in the first model but a negative significant relationship in the second model.

A sustainable approach on tax audit inspection

2023-03-27T10:19:53+07:00

The problem with self-reporting data is that taxpayers can be mindful in declaring their tax returns. In some cases, they may intentionally select information on the financial statement for taxation purposes. Tax audits are an essential tool for this problem, but the coverage ratio for corporate enterprises needs to be higher. Increasing the coverage might be one solution to enforce compliance since tax audits require lots of resources. Directorate General of Taxation (DGT) should consider that some variables may influence a taxpayer’s behavior and then use them in the tax audit program. This paper will discuss how the fee of an independent auditor might affect the tendency to perform tax-aggressive strategies. The analysis looks at 22,519 audited financial reports from Indonesian businesses. The paper will employ Instrument Variables to address the endogeneity issue in the dataset. The finding indicates that audit fees harm tax-aggressive strategies. Thus, audit fee data could predict an audited enterprise’s behavior. The result from this IV estimator can be used as an insight by DGT in determining their tax audit strategy.

Application of data mining to taxpayers issuing fictitious tax invoice using classification techniques

2023-02-06T15:45:43+07:00

Pajak adalah tulang punggung penerimaan negara, namun penerimaan pajak tidak berjalan optimal karena adanya tindak pidana perpajakan. 44 % dari keseluruhan tindak pidana pajak berasal dari penerbitan Faktur Pajak Tidak berdasarkan transaksi sebenarnya. Hal tersebut mengurangi pendapatan dari sektor PPN bahkan dapat mengambil uang negara menggunakan restitusi PPN. Untuk menghadapi hal tersebut DJP dapat menggunakan data mining untuk melakukan audit yang lebih efektif dan efisien. Penelitian menggunakan metodologi CRISP-DM dan Python diterapkan kepada 1071 data wajib pajak penerbit dan 2142 wajib pajak bukan penerbit. Hasil dari penelitian memberikan model yang memiliki Prediction Efficiency sebesar 83,56%, reduction in Examination Effort sebesar 69,31%, dan Strike Rate sebesar 90,77%. Model tersebut kemudian dapat digunakan dengan Streamlit dan memprediksi 8 WP penerbit dengan probability 75% dari data deployment yang terdiri dari 1000 baris data.

Toward seamless taxation through a split payment mechanism on the marketplace and Quick Response (QR) payment system

2023-07-21T11:08:13+07:00

The rapid development in Indonesia's digital economy offers both challenges and prospects for the Directorate General of Taxes (DGT) in tax collection. Despite the intricacy of monitoring digital transactions, their electronic data can be efficiently collated. Through a desk review, the author discusses government strategies to boost tax revenue from the digital economy and suggests a split payment mechanism for marketplace transactions and Quick Response (QR) Payment Systems. This mechanism benefits both taxpayers and the DGT by simplifying tax obligations, increasing revenue, and streamlining cash flow for the latter, all at reduced supervision costs.

Review of the employee performance evaluation system at the Directorate General of Taxes

2023-01-27T16:28:10+07:00

This quantitative research seeks to determine the effectiveness of the Directorate General of Taxes (DGT) performance
evaluation system, measure how satisfied the employees are, and to prove differences among different categories of
employees. This research is an extension of the study by Widiatmanti (2020) on 1,587 DGT employees. Analysis of
Variance (ANOVA) and Exploratory Factor Analysis (EFA) were used to analyze the data in addition to descriptive data
analysis. Generally, respondents feel the system is quite effective, and they are quite satisfied, except for three variables
that most respondents strongly disagree with and relate to the performance status of SABCD and the level 1 and level
2 ranking sessions. ANOVA method indicates that there are indeed differences among different categories of employees,
while EFA method reveals that despite seven insignificant variables, none of them suggests the need to change DGT
Regulation 12/PJ/2018, including its SABCD performance status. However, the need for change or adjustments arises
because there are provisions at higher levels of regulation: Government Regulation and two ministerial decrees.
Therefore, we suggest that the use of forced rank in the SABCD performance status is abolished and replaced mainly
due to excellent, moderate, and poor performances.