THE STRATEGY IN DEVELOPING PUBLIC TRUST OF TAXPAYERS’ COMPLIANCE IN SOUTH SULAWESI PROVINCE

https://doi.org/10.22146/jkap.43915

Mohamad Thahir Haning(1), Hasniati Hamzah(2), Mashuri H Tahili(3*)

(1) Hasanuddin University of Makassar, Faculty of Social and Political Science, Administrative Science Department.
(2) Hasanuddin University of Makassar, Faculty of Social and Political Science, Administrative Science Department.
(3) Muhammadiyah University of Luwuk Banggai
(*) Corresponding Author

Abstract


The reduced level of tax compliance in Makassar as the capital of South Sulawesi, Indonesia in 2014 to 2016 significantly became an important basis for evaluating the accountability and transparency of tax service performance. This study aims to determine the level of compliance and determinants of tax compliance in three administrative regions of South Sulawesi that represent urban and rural areas, namely, Makassar Selatan, Maros, and Palopo City through a slippery framework. Based on two concepts of economics and public administration for implementing the sliperry slope tax framework, this study then discusses coordination and trust when implementing relationships. Using a qualitative methodology, this study processed and tested the questionnaire through ANOVA to find out the results of differences in tax compliance levels in three administrative regions of South Sulawesi. This study discusses and refutes findings in previous studies. On the one hand accountability and transparancy of tax services is important to increase taxpayer awareness. This at the same time rejects other research perspectives that explain the application of coercion and persuasion to tax policies that will increase public confidence and increase taxpayer awareness. The results also showed that there were no significant differences in respondents' perceptions about the role of power and the dimensions of trust in developing public trust. The dimensions of power and trust are identified as vital to increasing the trust and compliance of taxpayers. This study recommends the need to adopt a slippery slope framework in growing and increasing the trust of taxpayers, which is important for higher taxpayer compliance in South Sulawesi Province.


Keywords


slippery slope framework; public trust, power; trust; taxpayers’ compliance, SWOT Analysis

Full Text:

PDF


References

Adi, Y. (2019). Bureaucratic Reform Barriers: A Case Study on the One Stop-Integrated Service Office in Bone Regency. JKAP (Jurnal Kebijakan Dan Administrasi Publik), 22(2), 146. https://doi.org/10.22146/jkap.34536

Alm, J., Martinez-Vazquez, J., & Torgler, B. (2010). Developing alternative frameworks for explaining tax compliance. Developing Alternative Frameworks for Explaining Tax Compliance, 9780203851, 1–301. https://doi.org/10.4324/9780203851616

Alwi., Tahili, M.H., 2017. Creating a Trusted Public Organization : Organizational Trust Analysis in Implementation Network of the Education Quality Assurance Policy in Indonesia, in: Proceedings of the International Conference on Administrative Science (ICAS 2017). Atlantis Press, Paris, France, pp. 11–16. https://doi.org/10.2991/icas-17.2017.3

Bond-Barnard, T. J., Fletcher, L., & Steyn, H. (2018). Linking trust and collaboration in project teams to project management success. International Journal of Managing Projects in Business, 11(2), 432–457. https://doi.org/10.1108/IJMPB-06-2017-0068

Darmi, T. (2018). Locally-Generated Revenue as A Capacity Parameters of New Regional Autonomy Management. JKAP (Jurnal Kebijakan Dan Administrasi Publik), 22(1), 1. https://doi.org/10.22146/jkap.24870

Denhardt, R. (2002). Trust as Capacity: The Role of Integrity and Responsiveness. Public Organization Review, 2(1), 65–76. https://doi.org/10.1023/A:1016027504549

Faizal, S. M., Palil, M. R., Maelah, R., & Ramli, R. (2017). Perception on justice, trust and tax compliance behavior in Malaysia. Kasetsart Journal of Social Sciences, 38(3), 226–232. https://doi.org/10.1016/j.kjss.2016.10.003

Feld, L. P., & Frey, B. S. (2002). Trust breeds trust: How taxpayers are treated. Economics of Governance, 3(2), 87–99. https://doi.org/10.1007/s101010100032

Finn, P. (1993). Public Trust and Public Accountability. The Australian Quarterly, 65(2), 50. https://doi.org/10.2307/20635720

Gangl, K., Hofmann, E., & Kirchler, E. (2015). Tax authorities’ interaction with taxpayers: A conception of compliance in social dilemmas by power and trust. New Ideas in Psychology, 37, 13–23. https://doi.org/10.1016/j.newideapsych.2014.12.001

Gobena, L.B., Van Dijke, M., 2016. Power, justice, and trust: A moderated mediation analysis of tax compliance among Ethiopian business owners. J. Econ. Psychol. 52, 24–37. https://doi.org/10.1016/j.joep.2015.11.004

Herzlinger, R. E. (1996). Can public trust in nonprofits and governments be restored? Harvard Business Review, Vol. 74, pp. 97–107.

Kim, S.E., 2005. The role of trust in the modern administrative state an integrative model. Adm. Soc. 37, 611–635. https://doi.org/10.1177/0095399705278596

Kim, S. (2018). Governance Values and Public Trust in Government: An Exploratory Study of Indonesia, Malaysia, and Thailand. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3103507

Kirchler, E., 2007a. The economic psychology of tax behaviour. Econ. Psychol. Tax Behav. 1–243. https://doi.org/10.1017/CBO9780511628238

Kirchler, E., 2007b. The Economic Psychology of Tax Behaviour. John Wiley & Sons Ltd. https://doi.org/https://doi.org/10.1017/CBO9780511628238

Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus voluntary tax compliance: The “slippery slope” framework. Journal of Economic Psychology, 29(2), 210–225. https://doi.org/10.1016/j.joep.2007.05.004

Kirchler, E., Muehlbacher, S., Kastlunger, B., & Wahl, I. (2010). Why pay taxes?: A review of tax compliance decisions. Developing Alternative Frameworks for Explaining Tax Compliance, 9780203851(January), 15–31. https://doi.org/10.4324/9780203851616

Kirchler, E., Hoelzl, E., 2017. Tax Behaviour. Econ. Psychol. 255–271. https://doi.org/10.1002/9781118926352.ch16

Kogler, C., Batrancea, L., Nichita, A., Pantya, J., Belianin, A., & Kirchler, E. (2013). Trust and power as determinants of tax compliance: Testing the assumptions of the slippery slope framework in Austria, Hungary, Romania and Russia. Journal of Economic Psychology, 34, 169–180. https://doi.org/10.1016/J.JOEP.2012.09.010

Kogler, C., Muehlbacher, S., & Kirchler, E. (2015). Testing the “slippery slope framework” among self-employed taxpayers. Economics of Governance, 16(2), 125–142. https://doi.org/10.1007/s10101-015-0158-9

Kramer, R.M., Tyler, T.R., 1995. Trust in Organizations: Frontiers of Theory and Research. Sage Publications, Thousand Oaks.

Levi, Margaret; Stoker, L. (2000). Political Trust and Trustworthiness. Annual Review of Political Science, 3. https://doi.org/https://doi.org/10.1146/annurev.polisci.3.1.475

Muehlbacher, S., & Kirchler, E. (2010). Tax compliance by trust and power of authorities. International Economic Journal, 24(4), 607–610. https://doi.org/10.1080/10168737.2010.526005

Muehlbacher, S., Kirchler, E., & Schwarzenberger, H. (2011). Voluntary versus enforced tax compliance: Empirical evidence for the “slippery slope” framework. European Journal of Law and Economics, 32(1), 89–97. https://doi.org/10.1007/s10657-011-9236-9

Nisa’, K., Rusfian, E., & Zaenab, Z. (2019). Managing Government Digital Reputation through Big Data Processing. JKAP (Jurnal Kebijakan Dan Administrasi Publik), 22(2), 72. https://doi.org/10.22146/jkap.31810

Pratama Tax Service of Makassar, 2018, 2018. Data Jumlah Wajib Pajak Pribadi dan Badan Tahun 2018.

Prinz, A., Muehlbacher, S., Kirchler, E., 2014. The slippery slope framework on tax compliance: An attempt to formalization. J. Econ. Psychol. 40, 20–34. https://doi.org/10.1016/j.joep.2013.04.004

Raven, B. H. (2008). The bases of power and the power/interaction model of interpersonal influence. Analyses of Social Issues and Public Policy, 8(1), 1–22. https://doi.org/10.1111/j.1530-2415.2008.00159.x

Salminen, A., & Ikola-Norrbacka, R. (2010). Trust, good governance and unethical actions in Finnish public administration. International Journal of Public Sector Management, 23(7), 647–668. https://doi.org/10.1108/09513551011078905

Shobaruddin, M. (2019). Critical Factor Influencing Electronic Government Capacity Building in Sragen Municipality Government Public Service Delivery. JKAP (Jurnal Kebijakan Dan Administrasi Publik), 22(2), 98. https://doi.org/10.22146/jkap.34105

Siglé, M., Goslinga, S., Speklé, R., van der Hel, L., & Veldhuizen, R. (2018). Corporate tax compliance: Is a change towards trust-based tax strategies justified? Journal of International Accounting, Auditing and Taxation, 32, 3–16. https://doi.org/10.1016/J.INTACCAUDTAX.2018.06.003

Stein, Stanley M; Harper, T. L. (2003). Power, Trust, and Planning. Journal of Planning Education and Research. https://doi.org/https://doi.org/10.1177/0739456X03258636

Sunahwati, E., Maarif, M. S., & Sukmawati, A. (2019). Human Resources Development Policy as a Strategy for Improving Public Organizational Performance. JKAP (Jurnal Kebijakan Dan Administrasi Publik), 23(1), 50. https://doi.org/10.22146/jkap.37957

Trust in organizations: Frontiers of theory and research. (1996). In R. M. Kramer & T. R. Tyler (Eds.), Trust in organizations: Frontiers of theory and research. Thousand Oaks, CA, US: Sage Publications, Inc.

Tyler, T.R., 2005. Policing in Black and White: Ethnic Group Differences in Trust and Confidence in the Police. Police Q. 8, 322–342.

Tyler, T.R., 2003. Trust within organizations. Pers. Rev. 32, 556-568+673. https://doi.org/10.1108/00483480310488333

Wahl, Ingrid, Kastlunger, Barbara, Kirchler, E. (2010). Trust in Authorities and Power to Enforce Tax Compliance: An Empirical Analysis of the “Slippery Slope Framework.” Law and Policy, 32(4). https://doi.org/https://doi.org/10.1111/j.1467-9930.2010.00327.x

Wicks, A.C., Berman, S.L., Jones, T.M., 1999. The structure of optimal trust: Moral and strategic implications. Acad. Manag. Rev. 24, 99–116.



DOI: https://doi.org/10.22146/jkap.43915

Article Metrics

Abstract views : 1912 | views : 1615

Refbacks

  • There are currently no refbacks.


Bookmark and Share


Copyright (c) 2019 JKAP (Jurnal Kebijakan dan Administrasi Publik)

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.