The Influence of Taxpayer Awareness on Motor Vehicle Taxpayer Compliance

Abstract

Purpose – The purpose of this study is to obtain empirical evidence regarding the effect of taxpayer awareness on motor vehicle taxpayer compliance in Bekasi Regency, with tax sanction as a moderating variable. 

Design/methodology/approach – This research employs a quantitative approach with individuals as the unit of analysis, including employees from the private sector, state-owned enterprises (SOEs), the education sector, civil servants, and self-employed individuals who personally own motor vehicle in Bekasi Regency, particulary in the subdistrict of Tambun Selatan, Babelan, and Cibitung. The researcher’s involment is kept minimal. A total of 365 respondents were obtained using a snowball sampling method, where participants refer others within their network. Data were collected through a structured questionnaire, and the analysis was conducted using Partial Least Squares Structural Eqution Modelling (PLS-SEM) version 4.0. 

Findings – His research shows that taxpayer awareness has a significant and positive effect on taxpayer compliance. Likewise, a clear understanding of tax regulations makes a positive and significant contribution to taxpayer compliance. Apart from that, tax sanctions also act as a strengthening factor in the relationship between awareness of taxpayer compliance, as well as the relationship between understanding tax regulations on taxpayer compliance. 

Research limitations/implications – This research has a number of limitations that emerged during the data collection process. One of the main challenges was attracting some respondents to fill out the questionnaire boldly because they were concerned about risk of digital fraud. In addition, the geographic scope of the research which only covers the Bekasi Regency are and the focus of respondents being limited to motor vehicle taxpayers means that the results of this research cannot be generalized to other types of taxes or areas with more complex conditions. In addition, some elderly respondents required assistance when fulfilling out the questionnaire to ensure that the answers given truly reflected their personal opinions and minimized filling errors