The effect of tax knowledge, sanctions, tariffs and fees on individual taxpayer compliance

Abstract

Purpose: This study aims to determine whether there is significant tax knowledge, tax sanctions, tax rates, and cost of compliance with the compliance of individual taxpayers.

Methods: This study's population consisted of individual taxpayers registered. The sample consisted of 100 respondents, and the sampling method used was incidental sampling. Data was collected by distributing questionnaires to respondents and using a Likert scale. The analysis used was multiple regression analysis with the help of Eviews 9 Software.

Findings: The results show that taxation knowledge has a significant positive effect on individual taxpayer compliance, tax sanctions have a significant positive effect on individual taxpayer compliance, tax rates have a significant positive effect on individual taxpayer compliance, and compliance costs have a significant negative effect on individual taxpayer compliance.

Practical Implications: Research shows that tax knowledge and tax sanctions positively affect individual taxpayer compliance. Fair tax rates support compliance, while high compliance costs can reduce motivation. Therefore, tax agencies need to increase socialization regarding taxation and apply strict sanctions. With these steps, a more compliant society can be created to fulfill tax obligations.