Farmers, Millers and Sugar Production In Indonesia (Vol. II)
Soetrisno, Noer (Adv.: Dante B. Canlas), Dante B. Canlas
The Purpose of this study is to investigate and to re-spond to the question of low property taxpayers compliance in the urban sector, and to find a way to improve taxpayers compliance. Low taxpayes compliance not only result in a low tax revenue yield, but also it raises efficacy and equity questions.
Questionnaires and direct interviews with taxpayers have been conducted. Multiple regression procedure is used in this study. The purpose of using the multiple-regression technique is not prediction. Our objective is to ascertain if independent variables influence the dependent variable positively or negatively, that is, we are interested in the sign of parameters rather than its estimated value since the problems involve the nature of human behavior that cannot be predicted easily.
One of the main findings of this study reveals that there is a strong positive correlation between the perception of fairness and taxpayers tax-knowledge with the level of tax compliance. The suggests that the level of taxpayerscompliance can be improved by improving the taxpayers tax-knowledge through formal education or tax-publicity. However, this is not a panacea.
Lack of compliance may result from problems with the tax collection procedure. Therefore the compliance problem is unlikely to be improved without improving the collection system. Standard enforcement procedure, such as high fines and more severe penalties, including jail sentences for non-compliance, are necessary, but they are unlikely to improve the level of compliance dramatically and might, in fact, lead to more taxpayers resistance. Because of this, it is recommended that a different tax collection method be adopted.
This new procedure of property tax collection intends to link the urban property tax bill with the electric utility bill. This study indicates that the procedure is feasible. The Problems with this solution are mainly technical and political in nature. However, these problems can be solved with the cooperation of these two government agancies and taxpayers. It is expacted that this new procedure will improve the level of tax compliance, result in less taxpayer resistance and at the same time, improve equity and efficiency.
Kata Kunci : taxpayers, tax compliance, tax procedures, low property taxpayers. Taxation.
