THE INFLUENCE OF MODERNIZATION OF TAX ADMINISTRATION SYTEM TO TAXPAYER COMPLIANCE By: Evie Trie Hardiani 109082100022 DEPARTMENT OF ACCOUNTING INTERNATIONAL CLASS PROGRAM FACULTY OF ECONOMICS AND BUSINESS SYARIF HIDATULLAH STATE ISLAMIC UNIVERSITY JAKARTA 1434 H/2013 CURRICULUM VITAE Personal Data Full Name : Evie Trie Hardiani Nick Name : Evi Address : Jl. Saketi-Malingping km 7 kp.Sukamaju Rt 12/03 desa Bojong,Pandeglang-Banten Mobile Phone : 087822288558 E-mail : evi_hardiani@yahoo.com Place, Date of Birth : Pandeglang, April 28,1991 Gender : Female Religion : Islam Nationality : Indonesia Education Elementary SDN 4 Bojong 1997-2003 Junior High School SMPN 1 Bojong 2003-2006 Senior High School SMAN 1 Pandeglang 2006-2009 University UIN Syarif Hidayatullah Jakarta 2009-now Major: Accounting international class program Work Experience Internship at Koperasi DPR-RI Jakarta (2012) Organization Experience Member of OSIS SMPN 1 Bojong Member of BEMF Akuntansi UIN Syarif Hidayatullah Jakarta (2010) i The Influence of Modernization of Tax Administration System to Taxpayer Compliance ABSTRACT Objectives to be achieved in this research, is to analysis the influence of implementation modernization administration system of taxation with of 4 dimensions, which is organizational structure, organizational procedure, organizational strategy and organizational culture toward taxpayer compliance. This research have done by taxpayer in Tax Service Office (KPP) Pratama Senen, Jakarta. The sampling method using is convenience sampling. 100 questionnaires was distributed to the taxpayer with the criteria of respondents in Tax Service Office (KPP) Pratama Senen, Jakarta. Test used was multiple regressions. The results showed that modernization administration system of taxation with of 4 dimensions, which is organizational structure, organizational procedure, organizational strategy and organizational culture significantly influence taxpayer compliance either partially or simultaneously. Based on the result of multiple regressions test was found that the most dominant variable is the variable organizational procedure, it can be seen by the beta value of 0.319. Keyword: Modern Tax Administration System, Organizational Structure, Organization Procedures, Organizational Strategy, Organizational Culture, Taxpayer Compliance. ii Pengaruh Penerapan Modernisasi Sistem Administrasi Perpajakan Terhadap Kepatuhan Wajib Pajak ABSTRAK Tujuan yang ingin dicapai dalam penelitian ini, yaitu untuk menganalisis pengaruh penerapan modernisasi system administrasi perpajakan yang dilihat dari empat dimensi yaitu struktur organisasi, prosedur organisasi, strategi organisasi, dan budaya organisasi terhadap kepatuhan wajib pajak. Penelitian ini dilakukan pada wajib pajak yang terdaftar pada KPP Pratama Senen, Jakarta. Metode pengambilan sampel dengan menggunakan tekhnik convenience sampling. Kuesioner telah disebarkan kepada wajib pajak sebanyak 100 kuesioner dengan kriteria responden yang terdaftar di KPP Pratama Senen, Jakarta. Uji yang digunakan adalah regresi berganda. Hasil penelitian menunjukkan bahwa modernisasi system administrasi perpajakan yang dilihat dari empat dimensi yaitu struktur organisasi, prosedur organisasi, strategi organisasi dan budaya organisasi berpengaruh signifikan terhadap kepatuhan wajib pajak baik secara parsial maupun simultan. Berdasarkan hasil uji regresi berganda ditemukan bahwa variable yang paling dominan adalah variable prosedur organisasi, dapat dilihat berdasarkan nilai beta sebesar 0,319. Katakunci: modernisasi sistem administrasi perpajakan, struktur organisasi, prosedur organisasi, strategi organisasi, budaya organisasi, kepatuhan wajib pajak. iii FOREWORD Assalammu'alaikum Wr.Wb All Praise to Allah SWT as the Hearer, the Seer and above all an abundance of grace, Taufiq, as well as his guidance. So, because Allah SWT I can finish this research on time. Shalawat always gives to the Prophet of Muhammad SAW and all his family and friends who always helped him in establishing Dinullah in this earth. With the strength, intelligence, patience, and strong desire from Allah SWT, I am able to finish this mini thesis as graduation pre requirement for bachelor degree. I believe there is an invisible hand which have helped me going through this process. My special thank for my supermom, Eri Komariah, who had supported with your best way and never gave up to educate me to be a good son. So, I want to make you smile and proud of me, because your smile can make me feel piece and calm in any situations that I have faced. You always pray for the pleasure of your family and me. You always wake up in the middle of the night, just to talk to Allah SWT and hoping that your family will always be blessed by Allah SWT. Therefore, I just want to give the best of me. Thank you for everything mom. I love you so much. You are the best mother in this whole word, I promised to make you happy and proud of being a son that you want, and I’m thanking to Allah to give me a chance as your little girl. My beloved father, Asep Tiawarman who give me lots of spirit and positive energy when I felt hopeless to finish this mini thesis. You always believed that I can do everything with myself. You are always beside me when I need your support. You iv are the first men that I want to say thanks in the world when I finish this mini thesis. Thank you for everything my superdad. Thanks for the hard work that had you done for the family. Thanks a lot for being great father ever for me. And I’m very glad to be your little girl. I love you so much dad. I believe I am nothing without each one of you who has helped me in finishing this mini thesis. So I would like to say thanks to all of them who have been helping me the process of this thesis, including: 1. Prof.Dr.Abdul Hamid, MS as dean of the faculty of Economics and Business 2. M. Arief Mufraeni, Lc.,Msi as Head of International Program. 3. Ahmad Dumyathi Bashori, MA as Secretary of International Program. 4. Prof. Dr. Azzam Jasin as my thesis supervisor 1. You are my mentor who has provided direction and guided me, shared your knowledge to me, and thank you for your time that you gave .So, I able to finish this mini thesis. 5. Wilda Farah,SE,MSi,Ak as my thesis supervisor II who has provided direction, guidance, and thank you for your time and your patience that you gave to me, so I can finish this mini thesis. 6. All Lecturers who have taught patiently, may what they have given are recorded in Allah SWT almighty and all staff UIN Jakarta. 7. All of taxpayer in Tax Service Office (KPP) Pratama Senen, Jakarta for giving me your time to filling my questionnaire. So, I could finish my mini thesis. 8. My brothers, Ricky Tiawarman and Teddy Gunawan and my sisters, Endah Nurhayati and Hayya who always helped and supported me for my best, whatever I do and whenever it is. 9. All my friends in accounting international 2009, more than 3 years we are classmates, we have been through together with different characters, but you are still best friends and special thanks for some of you who have always helped me in learning and especially in doing thesis. Thanks also for my friends in management international 2009. v 10. Thanks for all seniors and juniors who have prayed and give me spirit. Special thanks to kak Lucki and kak dwi, thanks for your information and help in my thesis process. Thanks a lot. I realize this mini thesis is still far from perfection, thus suggestions and constructive criticism from all parties are welcome, in order to improve my thesis. Finally, only Allah SWT will return all and I hope this thesis will be useful to all parties, especially for writers and readers in general, may Allah bless us and recorded as the worship of Allah’s hand. Amin. Wassalammualaikum Wr.Wb Jakarta, May 2013 Evie Trie Hardiani vi LIST OF CONTENT Curriculum Vitae .............................................................................................. i Abstract ........................................................................................................... ii Abstrak ............................................................................................................ iii Foreword ......................................................................................................... iv List of Content ................................................................................................ vii List of Table .................................................................................................... xi List of Figure ................................................................................................... xii List of Appendix .............................................................................................. xiii CHAPTER I INTRODUCTION A. Background ......................................................................................... 1 B. Problem Definition .............................................................................. 8 C. Purpose and Benefit ............................................................................ 8 CHAPTER II LITERATURE REVIEW A. Taxation ................................................................................................ 10 1. Definition of taxation....................................................................... 10 2. Function of taxation ......................................................................... 12 3. The principle and basic of tax levy.................................................. 13 4. System of tax levy ........................................................................... 14 5. Terms of tax levy ............................................................................. 16 vii B. Taxpayer ............................................................................................... 18 1. Definition of taxpayer ...................................................................... 18 2. Subject of taxation ........................................................................... 18 3. Right and obligation of taxpayer .................................................... 18 C. Modernization System of Taxation Administration ............................ 20 1. Definition of Administration ........................................................... 20 2. Administration of Taxation ............................................................. 21 3. Reform of the Taxation Rules ................................................................... 22 4. The History of Taxation Administration System....................................... 25 5. Reform of the Taxation Administration System ....................................... 27 D. Dimension of Application of Modernization of Taxation Administration System................................................................................... 31 1. Organizational Structure .......................................................................... 32 2. Organizational Procedure .......................................................................... 35 3. Organizational Strategy............................................................................. 36 4. Organizational Culture .............................................................................. 37 E. Taxpayer Compliance .................................................................................. 38 1. Definition of Compliance.......................................................................... 38 2. The Factors That Affect Taxpayer Compliance......................................... 39 3. Criteria of taxpayer compliance ................................................................ 40 F. Previous Research ......................................................................................... 41 G. Theoretical Framework .................................................................................. 44 H. Hypothesis Development ............................................................................... 47 viii CHAPTER III RESEARCH METODHOLOGY A. Scope of Research ......................................................................................... 52 B. Sampling Method ........................................................................................... 52 C. Data Collection Method ................................................................................. 53 1. Primary Data............................................................................................ 53 2. Secondary Data........................................................................................ 54 D. Data Analysis Method .................................................................................... 54 1. Descriptive Statistic................................................................................. 54 2. Data Quality Test ..................................................................................... 55 a. Validity of Test Data ......................................................................... 55 b. Reliability Test Data ......................................................................... 55 3. Classic Assumption Test .......................................................................... 56 a. Test of Normality .............................................................................. 56 b. Test of Multikolonieritas ................................................................... 56 c. Test of Heteroskedastisitas ................................................................ 57 4. Hypothesis Test ....................................................................................... 58 a. Multiple Regression Test ................................................................ 58 b. Coefficient Determination Test (Adjusted R2) .................................. 59 c. Partial Regression Testing (T Test) ................................................... 59 d. Significant Simultaneous Test (Test Statistic F) ............................... 59 E. Operational Research Variables ..................................................................... 60 ix CHAPTER IV RESULT AND ANALYSIS A. An Overview of The Research Object ........................................................... 69 B. Analysis and Discussion ................................................................................ 76 1. Test Results of Descriptive Statistic ........................................................ 76 2. Result of Data Quality Test ..................................................................... 77 a. Result of Validity Test ........................................................................ 77 b. Result of Reliability Test .................................................................... 80 3. Result of Classic Assumption .................................................................. 82 a. Result of Normality Test ................................................................... 82 b. Result of Multicolonierity Test ......................................................... 83 c. Result of Heteroscedastic Test .......................................................... 84 4. Result of Hypothesis Test ........................................................................ 85 a. Result of Multiple Regression Test ................................................... 85 b. Result of Coefficient Determination Test (Adjusted R2) .................. 86 c. Result of Partial Regression Testing (t-test)...................................... 87 d. Result of Significant Simultaneous Test (F Test) .............................. 92 C. Interpretation .................................................................................................. 93 CHAPTER V CONCLUSION , IMPLICATION AND RECOMENDATION A. Conclusion ..................................................................................................... 98 B. Implication ..................................................................................................... 99 C. Recommendation ......................................................................................... 102 REFFERENCE ......................................................................................................... 103 APPENDIX ............................................................................................................... 106 x LIST OF TABLE NO INFORMATION PAGE 1.1 The Realization Revenues of The Country .................................................... 2 2.1 The Obligation of Taxpayer ........................................................................... 20 2.2 Differences between the Old System and the New System ......................... 31 2.3 Previous Research ......................................................................................... 42 3.1 Scale Likert ................................................................................................... 54 3.2 Research Operational Variables .................................................................... 67 4.1 Questionnaires Distribution .......................................................................... 74 4.2 Characteristic Respondents ........................................................................... 74 4.3 Descriptive Statistics ..................................................................................... 76 4.4 Result of Validity Test Variable Organizational Structure ............................. 78 4.5 Result of Validity Test Variable Organizational Procedure ........................... 78 4.6 Result of Validity Test Variable Organizational Strategy .............................. 79 4.7 Result of Validity Test Variable Organizational Culture ............................... 79 4.8 Result of Validity Test Variable Taxpayer Compliance ................................. 80 4.9 Result of Reliability Test ................................................................................ 81 4.10 Result of Multicollinearity Test...................................................................... 83 4.11 Result of Multiple Regression Test ................................................................ 85 4.12 Result of Coefficient Determination Test (Adjusted R2) ................................ 86 4.13 Result of Partial Regression Testing (t-test) ................................................... 88 4.14 Result of F Test (Simultan) ............................................................................ 92 xi LIST OF FIGURE NO INFORMATION PAGE 2.1 Theoritical Framework ......................................................................... 46 4.1 Result of Normality Data Test .............................................................. 82 4.2 Result of Heteroscedasticity Test ......................................................... 84 xii LIST OF APPENDIX NO INFORMATION PAGE Appendix 1 Research of Questionnaire ........................................................... 106 Appendix 2 The Result of Questionnaire ........................................................ 113 Appendix 3 Result of Validity and Reliability Test SPSS 20 ........................... 127 Appendix 4 Result of Multiple Regressions Test ............................................. 132 xiii CHAPTER I INTRODUCTION A. Background National development in a country in fact organized by the people, together with governments that cooperate with each other to be able to realize successful national development that creates a fair and prosperous society based on Pancasila. The role of government becomes very important and has strategic position because it is impossible to drive the governance program and national development without the financial support mainly from the domestic revenues from tax revenue sector. Indonesia is a country that is actively doing development. This requires an appropriate strategy in order the achieved equitable economic development can be enjoyed by all segment of society. In implementing the national development, the government needs a lot of amount of funds. These funds can be obtained from inside or outside of the country. Funds from inside may be obtained from export activities, tax revenues, and non-tax revenues. Whereas the funds from outside can be obtained from foreign loans and grants. Tax is a source of non-oil and gas revenues that is important to finance government expenditure, either routine expenditure or construction expenditure. Taxes as the biggest source of income are inseparable part of the development of Indonesia. One of them is a source of financing for the state 1 1 budget (APBN). State budget created by the Government itself consists of three main sources of revenue, namely: 1) tax revenues, 2) oil and gas revenues, and 3) non-tax revenue. From year to year, we can see that the tax revenue continue to rise and give a large participation for state income. Tax revenue is always said to be reliable in financing national development. The role of tax revenue in the state budget in the activity of national development is very important and very strategic, a big size of such taxes may need to be embedded within each person in complying payment of taxes in order, it can be a pride for having contribution to national development. The contribution of tax revenue to the state can be seen in table 1.1 below: Table 1.1 The Realization Revenues of the Country (Billion rupiah) 2007-2012 The Source of the Revenue Tax Revenue Domestic Tax Income tax Value added tax Land and building tax Duties on land and building transfer Excise Other Tax Taxes On International Trade Import Duties 20071) 490,988 470,052 238,431 154,527 23,724 5,953 20081) 658,701 622,359 327,498 209,647 25,354 5,573 20091) 619,922 601,252 317,615 193,067 24,270 6,465 20101) 723,307 694,392 357,045 230,605 28,581 8,026 20112) 878,685 831,745 431,977 298,441 29,058 - 20123) 1,019,333 976,900 512,835 350,343 35,647 - 44,679 2,738 20,936 51,252 3,035 36,342 56,719 3,116 18,670 66,166 3,969 28,915 68,075 4,194 46,940 72,443 5,632 42,433 16,699 22,764 18,105 20,017 21,501 23,534 Export Duties Non-Tax Revenue Natural Resources Profit transfer from SOE's Other non-tax revenue Revenue Agency Public Service (BLU) Amount Percentage of tax revenues compared to Total 4,237 215,120 132,893 23,223 56,873 2,131 13,578 320,604 224,463 29,088 63,319 3,734 565 227,174 138,959 26,050 53,796 8,369 8,898 268,942 168,825 30,097 59,429 10,591 25,439 286,568 191,976 28,836 50,340 15,416 18,899 272,720 172,871 25,590 54,398 17,861 706,108 69,53% 979,305 67,26% 847,096 73,18% 992,249 72,90% 1,165,253 75,41% 1,292,053 78,89% Note : Differences in the single digits behind due to rounding 2 1) Central Government financial reports (LKPP) 2) State budget income and Expenditure– changes (APBN-P) 3) Plan State Budget income and Expenditure (RAPBN) Source : Central Bureau of Statistics and the Data processed From table 1.1 above it can be seen that most of the state's revenues derived from tax revenue, year to year tax revenues are increase. To strengthen the implementation of taxation in Indonesia, then as the basis is the Constitution of 1945 article 23 A which states that tax and other charges which are forced for the purposes of the state are governed by law. The provisions of legislation regulating taxation currently include: 1. Act No. 28/2007 about the third change of the General Provisions and Taxation Procedures Law. 2. Act No. 36/2008 about the fourth change of Act No. 7/1983 on Income Tax Law. 3. Act No. 18 of 2000 about Value Added Tax termed Goods and Services and Sales Tax on Luxury Goods. 4. Act No. 12 of 2000 about Land and Building Tax. 5. Act No. 1 of 1985 about the Stamp Duty. 6. Act No. 17 of 1997 about Tax Dispute Settlement Agency. 7. Act No. 38 of 2000 about regional taxes and regional retribution. 8. Act No. 19 of 2000 about Tax Billing with force 9. Act No. 20 of 2000 about Duties on land and building transfer (BPHTB) 10. Act No. 20/1997 about Non-Tax Revenues (PNBP). 11. Law No. 17/1975 about Stamp Duty. 3 The problem that arises is the dilemma when it is viewed from one side of the Country that wants the tax withheld as optimal as possible and achieve target so that the state can do the development. But, on the other hand, the taxpayer are not entirely fulfill their responsibility thus the state income is decreasing, these conditions cannot be denied that there are still people who think that there is no benefit for paying taxes because there is no direct benefits obtained from the government. To increasing the compliance of people on tax, in order the state revenue will also increase, the Directorate General of Taxes (DJP) make efforts, such as providing a better quality of service and issuing a policy that can increase taxpayer compliance. It aims to implement good governance and excellent service to the society. Besides, issuing the new policies, the tax authorities must also provide a quality service, then by itself, it will develop a sense of trust in the tax authorities so that it will build in the taxpayer compliance. Tax authorities should perform their functions to perform services fairly, the tax authorities must also be friendly, not arrogant, and need to put the taxpayer himself equally in the context of business partners and which are no less important is the assurance that paid taxes come to the State Treasury, so that the society will be encouraged comply the obligations of the taxation. Tarjo and Sawarjono (2005) in Mega (2008: 5). One of the policies issued by the Directorate General of Taxes in the implementation of good governance is the application of the tax administration system. Since the beginning of the year 2000, the 4 modernization of the system administration of taxation have been applied in Directorate General of Taxes (DJP). According to Chaizi Nasucha, reform of the tax administration is a refinement or improvement of the performance of the administration, either by individual, group or institutional in order to be more efficient, economical, and fast. Bird and Jantscher (1992), as quoted by Chaizi Nasucha, argued that in order for the reform of the tax administration can be successful, it needs to: (1) a simplified tax structure for ease, administration, and compliance, (2) a suitable reform strategy should be developed, (3) a strong political commitment to the improvement of the administration of taxation. According to Gunadi (2010), the tax administration is prosecuted to be dynamic in an effort to increase the application of an effective taxation policy. Feasibility criteria of administration demand that the new tax system can minimize administrative costs and the cost of compliance and make tax administration as part of its tax policy. The concept of modernization of tax administration basically is a change in the tax administration system that can change the mindset and behavior of the apparatus as well as the value of the organization so that it can make Directorate General of Taxes becomes a professional institution with a good image in the community. One of the purposes of the implementation of modern administrative system of taxation is to improve the performance of the tax authorities and to improve compliance of taxpayer. 5 Tax compliance can be defined as a situation where taxpayer comply with tax obligations and implement all their taxation rights. There are two kinds of compliance, namely formal compliance and materials compliance. Formal compliance is a situation where taxpayer comply with tax obligation formally in accordance with the provisions of tax laws. While the materials compliance are a situation where Taxpayer substantively meet all provisions of the material including formal compliance (Lasnofa and Fauzan, 2010). In research done by Sofyan (2005) about the influence of modern tax administration system implementation on taxpayer compliance in KPP of Directore General of Taxes. The result stated that organizational structure can increase taxpayer compliance significantly. This result had supported researches conducted by Abdul Rahman (2009) and Sri Rahayu (2009) and Lasnofa (2010) which stated that organization structure can increase taxpayer compliance significantly. With the modernization of organizational structure, it can increase taxpayer compliance on tax duty. The result of researches of Sofyan (2005), Abdul Rahman (2009), and Rapina (2011) stated that organization procedure can increase taxpayer compliance significantly. With the modernization, organizational procedure, such as simplification of administration procedure, improvement of timing standard, quality of services, and tax checking, there is one door services thorough account representative, and with the support from modern information technology in giving servicing, monitoring, checking and tax 6 claiming, and modernization of other organizational procedure that can increase the taxpayer compliance on doing tax duty. The result of researches of Sofyan (2005), Abdul Rahman (2009), and Rapina (2011) on the research stated that organizational strategy significantly influence on taxpayer compliance. With good and proper organizational strategy, it can increase the awareness of taxpayer on fulfilling their tax duty. It can be done by doing the campaign of tax care and awareness, simplification of tax administration, intensification of tax revenue, etc. (Abdul Rahman: 224) The result of Rapina’s (2011) research found that no influence of organization culture on taxpayer compliance. However, the result of research conducted by Sofyan (2005) proved that organizational culture significantly influence on taxpayer duty. In line with that research, Abdul Rahman (2009) and Lasnofa (2010) roved that organization culture significantly influence on taxpayer compliance Based on explanation above, then this research intended to prove whether the application of the policy system of modern taxation administration which includes four dimensions of the reform of the administration that are organizational structure, organizational procedures, organizational strategy and organizational culture influence on taxpayer compliance or not. So the research title is, “The Influence of Modernization of Tax Administration System to Taxpayer Compliance”. 7 B. Problem Definition The issues that will be discussed in this research are as follows: 1. Is the organizational structure significantly influence to taxpayer compliance? 2. Is the organizational procedures significantly influence to taxpayer compliance? 3. Is the organizational strategy significantly influence to taxpayer compliance? 4. Is the organizational culture significant influence to taxpayer compliance? C. Purposes and Benefits 1. Purposes In accordance with the problem definition, this research aims to find out: a. To observe the influence of organizational structure to taxpayer compliance. b. To observe of the influence of organizational procedures to taxpayer compliance. c. To observe of the influence of the Organization's strategy to taxpayer compliance. d. To observe the influence of organizational culture to taxpayer compliance. 8 2. Benefits a. The Author This research is expected to be the form of implementation of knowledge acquired in university which consists of theories and the fact in real, so the obtained theory can be used to add knowledge for the researcher relates to the influence of the implementation of the system of modern taxation administration on taxpayer compliance on tax services office pratama Senen, Jakarta. b. Academic To contribute additional information as additional scientific reference regarding the influence of modernization administration system of taxation to taxpayer compliance in the tax services office pratama Senen, Jakarta and may be additional material for next researchers. c. The Society To give information that the construction of the new policy is very important to improve taxpayer compliance that result in increased of State tax revenue, and as the image of the influence of modernization administration system of taxation to taxpayer compliance in the tax services office pratama Senen, Jakarta. d. Directorate General of Taxes As input for improvement of system with new better policies and improve the performance/service to taxpayer. 9 CHAPTER II LITERATURE REVIEW A. Taxation 1. Definition of Taxation According to the law No. 28 of 2007, "tax is the contribution of personal taxpayer or corporation which is forced under the law and not get rewarded directly used for State purposes for people's prosperity". Other than KUP definition, many experts give the limitation or an opinion regarding the meaning of taxation, but essentially has the same goal and purpose. Below, there are several definition of taxation according to some experts: a. The definition of taxes raised by S.I. Djajadiningrat in Rapina, Jerry and Yenni (2011: 5) "Tax as an obligation handed over some of his wealth to the State Treasury which is caused by condition, occurrence, and deed that gives certain position, but not as a punishment, according to the regulations set out by the Government and can be enforced, but there is no reciprocal service from the country directly, to preserve the public welfare." b. Definition of taxes raised by n. j. Feldman in Rapina, Jerry and Yenni (2011: 5) "Tax is imposed unilateral merit by and payable to the ruler (according to the norms established in General), without any contra-achievement, and used only to cover the expenses of public-expenditure." c. Definition of taxes raised by Rochmat Soemitro in Siti Resmi (2009: 1) 10 10 "Tax is a people's contribution/dues to the State Treasury under the legislation which can be enforced with no reciprocal services (contraachievement) that can be shown directly, and used to pay for public expenditure." d. Definition of the taxes raised by Mardiasmo in his book (2009:1) "Tax is a people's dues to the State Treasury under law (which may be forced) and do not get the reciprocal services (contra-achievement) that can be shown directly and used to pay for public expenditure." From some definition of taxes raised by the experts, it can be concluded that the definition of tax are: a. Can be withheld under tax laws as well as implementation, based on rules, can be forced. This is in line with the third amendment of 1945’s Constitution article 23A which stated "taxes and other charges that are forcing for the State’s purposes is set in the constitution". So it guarantees the legal certainty, both for tax officer as tax collectors or taxpayer. The tax can be forced if taxpayer do not comply tax duty and can be penalized according to the regulations. b. Taxes are withheld by the central government and local government. Tax is one of the sources of revenue of the State, so if the tax levy is separated between the central government and the local government, then local government will get an equal chance to advance and expand its region. c. Taxes are used for government expenditures, when there is a surplus can be used to finance Public Investment. With public investment so State asset will be growing. 11 d. In the payment of taxes, it could not be shown any individual contraachievement by the Government. For example, people who keep paying taxes of vehicles will go through the same quality path as people who do not pay tax on vehicles. 2. Function of Taxation Expressed by Ilyas (2007: 10-11) in Rapina, Jerry and Yenni (2011:5) there were four tax functions, namely: a. Budgeting Function is a function that is located in the public sector, namely a function for collecting tax money as much as possible in accordance with the laws in effect at the time will be used to finance the expenses of the State, and when there is a surplus, it will be used as government saving for government investment. b. Regulatory Function which is a function that the taxes will be used as a tool to achieve certain objectives that is outside of financial aspect. c. Democracy Function is a function which is one of embodiment or manifestation of the gotong-royong system, including the activities of the government and the construction for the benefit of mankind. This function is often associated with a person's right to obtain the services from government when he has performed its duty to pay taxes, if the government does not give good service, taxpayer can complain it. d. Distribution Function is a function that a greater emphasis on elements of equity and justice in society. 12 Some understanding of the tax function expressed above it can be concluded that the definition of tax functions are: a. As a source of state revenue, taxation is to finance the state expenditure. Taxes are used for routine expenditure such as personnel expenditures, material expenditure, maintenance, etc. b. With the regulatory function, taxes can be used as a tool to achieve a goal. For example, in order to attract capital investment, either domestic or abroad, it is given the wide range of on-site tax relief. In order to protect domestic production, the government set high import duties for foreign products. c. Taxes that have been withheld by the state will be used to finance all of the public interest, as well as to finance the construction so that it can create jobs, which in turn, will be able to increase the people's income. 3. The Principle and Basic of Tax Levy To achieve the purpose of the tax levy in the alternative levy, based on the principles of tax levy, so that there is harmony between the tax collector with the purpose and basis. Adam Smith in his book, “ An Inquiry Into The Nature And Causes Of The Wealth Of nation ", quoted by Santoso Brotodiharjo in his book "Pengantar Ilmu Hukum Pajak (2003: 27), there are four basic principles of the tax levy, namely: a. Equality The principle of the balance of the abilities or the principle of fairness. 13 b. Certain The principle of legal certainty. c. Convenience of Payment The basis of the on time tax levy or the principle of pleasure. d. Efficiency The tax should be done economically, do not collect taxes over income taxes. A basic understanding of some of the tax basis expressed above it can be concluded that the fundamental basis of the poll tax is: a) Tax Collection performed by the State should be in accordance with ability and income of taxpayer. The State should not act indiscriminately against taxpayer. b) All tax levies should be based on the tax legislation, so, for those who violate the law will be subject to sanctions. c) The tax must be withheld at the right time for taxpayer, for example at a time when the taxpayer receives salary or when the taxpayer receives a bonus. d) Costs of tax levy must be done efficiently, do not get tax levy costs going higher than the results of the tax levy. 4. System of Tax Levy System of tax levy can be distinguished into three parts (quoted in the book of Siti Resmi, 2009: 11-12), i.e.: 14 a. Official Assessment System The levy system which gives is the authority for the tax apparatus to determine personally the tax amount owed each year in accordance with the regulations. In this system, initiatives and activities to calculate and collect taxes entirely in the hands of the tax apparatus. Thus, successful or unsuccessful of the tax levy depends on tax apparatus. b. Self-Assessment System The tax levy system is the system that gives authority to the taxpayer in determining the amount of tax owed on its own each year in accordance with the regulations. In this system, initiatives and activities to calculate and collect taxes entirely in the hands of taxpayer. The taxpayer is deemed to be able to calculate the taxes, is able to understand the current tax law, and has a high honesty and to realize the importance of paying taxes. Therefore, the Taxpayer is given the trust to: 1) Calculate the own tax payable 2) Capable to calculate the tax payable 3) Pay for itself the amount of tax owed 4) Reported by themselves amount of tax owed, and 5) Accountable for tax owed. Thus, successful or unsuccessful of implementation of the tax levy depends on the taxpayer himself. 15 c. Withholding System `The system of tax levy that give the authority to the elected third party to determine the amount of tax owed by the taxpayer in accordance with the regulations. The appointment of third parties is carried out according to regulations, the decree of the President, and other regulations to cut and collect taxes, deposit, and accountable through available facility of taxation. In this system, the successful implementation of the poll tax depends on the elected third party. 5. Terms of the Tax Levy In order the tax levy will not cause obstacles or problem, then the tax levy must meet the following requirements (Mardiasmo, 2006: 2-3) in Rapina, Jerry and Yenni (2011: 6): a. Tax levy should be Fair (Principle of Fairness). According to the purpose of the law, is achieving justice, legislation and implementation of the tax levy should be fair. b. Tax levy should be based on Legislation in Indonesia (Principle of Jurisdiction) c. Tax levy should not disturb the economy (Principle of Economic) d. Tax levy must be efficient (Principle of Finance) e. Tax levy system should be simple From the requirements above, it can be concluded that the requirements of tax levy are: 16 1) Fair, according to law, means levying tax must be imposed generally and equally, and adjusted to the capability of taxpayer. While fair according to the execution means giving the right of taxpayer to file objection, postponement of payment and to file appeal to The Consultative Board for Taxes. For example, by setting their right and the obligation of taxpayer. 2) According to article 23 of 1945 Constitution stating: “tax and charge for the purpose of the state is set in legislation”, so that the taxpayer can have legal guarantees to be not behaved in general. 3) Tax levy must be done properly in order it will not disturb the economic condition, either production activity, trading, or services. Tax levy must not harm the public interest and hamper the activity of taxpayer, especially low and middle class. 4) Cost expensed for tax levy, must be recorded. It may not the tax received is lower than the cost of tax levy. Therefore, tax levy system should be simple and easy to apply. So that, taxpayer will not mind, either in calculation the tax or time. 5) How the tax levied is will determine the success of tax levy. Simple system will ease taxpayer to calculate tax payable, so that it will give positive impact to taxpayer to increase the awareness of tax compliance. In the opposite, if the system of tax levy is complicated, people will be reluctant to pay tax. 17 B. Taxpayer 1. Definition of Taxpayer In Act No. 28 of 2007, the definition of taxpayer is changed into: "The taxpayer is a person or entity, including personal tax payers, tax cutter and tax collector, who has the right and obligation of taxation in accordance with the provisions of the regulations." While based on the income tax, the Taxpayer is the person or entity that meets the definition as the subject of the tax and receive or earn revenue which is the object of taxation. In other words, those two elements must be met to become tax payers and tax objects. 2. Subject of Taxpayer The subject of taxpayer consist of three types, namely personal, the legacy has not been Split, and Permanent Establishment. The subject of Taxation is also distinguished into domestic and international tax. The domestic subject of taxation become taxpayer if they has earned revenue while international subject of taxation become a taxpayer if they earn revenue from Indonesia or obtained through a fixed business form in Indonesia. So the taxpayer is a private person or entity that has met the subjective and objective obligations. 3. Right and Obligation of Taxpayer a. Rights of Taxpayer The rights of taxpayer by law No. 28 of 2007 are as follows: 1) Report some Tax Period in a notification period letter (SPT Masa). 18 2) Submit statement of objections and appeals to taxpayer with certain criteria. 3) Extend the term of submission of Annual Income Tax Notice for due date of two months by delivering a notice in writing or by other ways to the Director General of taxes (DJP). 4) Corrects the notice that has been delivered by passing a written statement, in the condition the Director General of Taxes (DJP) has not been doing the examination. 5) Apply for a refund of overpaid taxes 6) File an objection to the Directorate General of tax on a Tax Underpayment Assessment Letter, Additional Tax Underpayment Assessment Letter, Nil Tax Assessment Overpayment Assessment Letter, and cutting or tax collection by third parties based on the provisions of the legislation. 7) Apply for an appeal to the tax court on the decision letter of objection. 8) Appoint a person with special power of attorney to execute the rights and meet the obligations in accordance with the provisions of the regulations. 9) Obtain a reduction in or elimination of administrative sanction in the form of interest on the late payment of taxes cash deficiency in terms of taxpayer conveyed the correction of the notice of the annual income tax before the tax year 2007, resulting in a tax that 19 should be paid become bigger and carried out within a period of one year after the enactment of law No. 28 of 2007. b. Obligation of Taxpayer The obligation of taxation as a state obligation, should be put in terms of the interests of the state. Interest of the state is closely related to the purpose and function of the obligation to pay taxes and other provisions supporting the tax payment order. Table 2.1 The Obligation of Taxpayer No 1 Analysis Taxpayer 2 Taxpayer 3 4 Annual Notification Bookkeeping 5 Debt Payer Explanation Register to obtain a Taxpayer Identification Number (NPWP). Calculate, deposit and report tax payable, including obligation of collectors and tax cutter Fill out an notification letter(SPT) clearly, completely and signed. Organize the bookkeeping or records Saving accounts for 5 years Bore range due to the payment of VAT or tax debt, meaning we responsible to pay debt payable even though it behalf of our company 6 etc. Source: Mardiasmo (2009:54) C. Modernization System of Taxation Administration 1. Definition of Administration According to the Dictionary of Indonesian (2005): "The Administration is 1) efforts and activities include goal setting as well as the determination of ways of organizing the construction of the organization; 2) efforts and activities related to implementation of policies 20 to achieve the objectives; 3) activities related to organizing the government; 4) office and administrative activities." According to Trecker’s opinion (Rapina: 2011), administration is a process which is dynamic and sustainable, which is driven in order to achieve the goal by utilizing people and material through coordination and cooperation. According to Liang Gie, administration means as a chain of activity done by a group of people in a cooperation to achieve an objective. Another meaning of administration is all of activities having same substance, which is the existence of certain activity and people doing cooperation to achieve previous decided objectives. From several meaning above, it can be concluded that the meaning of administration is all of chain of activities done by two or more people to achieve an objective by using certain facility and being able to achieve decided targets. 2. Administration of Taxation According to Sophar Lumbantoruan (1997: 582) in Sri Rahayu and Ita (2009: 121), administration of taxation is all ways or procedures of the imposition and collection of taxes about role of taxation administration. While according to Pandiangan (2008) in Sri Rahayu and Ita (2009: 121), stated that the administration of taxation is attempted to realize the rules of taxation, and the state revenue as mandated in APBN. 21 According to Gunadi (2009),"Administration of taxation is ordered to be dynamic in an effort to increase the effective implementation of taxation policy. Feasibility criteria of administration demands the new tax system to minimize administrative costs and compliance as well as make administration of taxation as part of the tax policy.” The two main tasks of reformation of taxation according to the Chaizi Nasucha is to achieve high effectiveness, that the ability to achieve a high level of compliance and efficiency with the ability to make the lowest administrative cost per unit tax receipt. The effectiveness and efficiency sometimes create a contradiction so that it is necessary the coordination, special measurement to increase the effectiveness and efficiency of taxation administration. In improving the effectiveness, it is used measurement: (1) voluntary tax compliance, (2) the principles of self-assessment, (3) provide information to the taxpayer, (4) speed in finding the problems associated with the notification letter(SPT) and payment, (5) improvement in supervision and control, (6) the appropriate sanctions. In improving the efficiency of tax administration, in particular, can be stimulated by: (1) provision of special units for large companies; (2) an increase in taxation for small taxpayer, (3) the use of banking services for tax levy, etc. 3. Reform of the Taxation Rules One of the first reform of taxation part one is the reform in the field of taxation law. The result is the validation of Law No. 28 of 2007 about the General Provisions and Taxation Procedures Law and Law No. 36 of 22 2008 about taxable income (PPh) by the House of Representatives and the President which brought change in taxation in Indonesia. The main points of change in the tax law is still sticking on taxation principles universally embraced, namely justice, convenience/efficiency of the administration, as well as increase and optimization of the state revenue while maintaining self-assessment system. This amendment is one of the major steps undertaken to support the tax reform that is going on, so the Directorate General of Taxes, so it is expected, in the medium term or long term, can increase State revenue with the increase of voluntary compliance. There are 18 main points of change about General Provisions and Taxation Procedures Law, such as: 1) Provision regarding the taking, filling, signing and filing the notification letter (SPT) can be done by electronic media. 2) The deadline for the submission of notification letter (SPT) of income revenue tax which was previously at least for three months is turned into at least four months after the end of the tax year. 3) Administrative sanctions fines for taxpayer with their own accord revealed their injustice act after the examination but haven't done a follow up investigation, handed down from 200% to 150%. 4) Overdue determination of tax and overdue levy is shortened from ten years to five years since the end of the tax period, or a tax year. 5) In order to encourage the taxpayer to reveal the unreported income in notification letter (SPT) of taxable income before 2007, taxpayer are 23 given the opportunity to file the correction by being given the reduction or elimination of sanctions of administration, as long as the correction is performed on the first year of the enactment of this Law. 6) Due date till one year after the enactment of this Law, personal taxpayer voluntarily register to obtain a tax identification number are given the removal of sanctions on tax administration, unless there are data or information state that notification letter (SPT) of taxpayer is incorrect or overpaid. One form of tax reform in Indonesia is by being legalized of Law No. 36 of 2008 which was the fourth amendment of Law No. 7 of 1983 about income tax through a long process and involves a stake holder including entrepreneurs that reflects justice and equality of position between tax officer and Taxpayer. Decline in tariff, the emphasis of the cost of compliance, law enforcement more firmly to the wayward taxpayer, equality between tax officer and taxpayer are points in the tax reform law of income tax. Law No. 36 of 2008 was enacted in September 23, 2008 and publicly implemented in January 1, 2009. Besides that, the change in tax reform 2008 which is involved in law No. 36 of 2008 about Fourth Amendment Law No. 7 of 1983 about income tax which is by imposing different tariff on individual taxpayer and corporate taxpayer. Expectedly with the new tax rate, then the corporate taxpayer will be benefited thereby revenues from taxpayer can be higher. 24 4. The History of Taxation Administration System Since 1983, the Directorate General of Taxes has initiated to do reforms in the field of the administration of taxation to increase confidence of taxpayer by giving qualified services. It is characterized by a reform in the field of legislation by applying the self-assessment system and changes to the organizational structure that prioritizes service aspects to taxpayer, started with the changes of tax inspection Office to tax services office. To provide service and better supervision, Directorate General of Taxes needs adequate information technologies support. In line with the development of information technology and organization of Directorate General Taxes, information system of taxation, which is used since 1994, already inadequate to serve and supervise the taxpayer as a whole. Therefore, in the establishment of regional offices and tax service office for big taxpayer in 2002, the Taxation Information System is developed into an integrated tax administration system which has base on organization structure based on functions. In addition, there are still weaknesses in the reporting system of taxpayer that is manual reporting requires tax officer to perform repeated recording which is error-prone and requires no small amount of resources. Through the development of information technology, Directorate General of Taxes to develop several programs aimed to improve services to taxpayer in the form of e-SPT and e-Filing. In the system of taxation payment is also found some problems, such as counterfeiting of tax payment slip. To prevent this problem, Directorate 25 General of Taxes develops electronic payment system that is known as monitoring of tax payments report. Reform in the field of taxation administration is continuing and in 2001, Directorate General of Taxes propose reform program that can increase the trust of taxpayer to taxation system which is finally aimed to increase taxpayer compliance. Modernizing itself covers 3 things, namely the reform of policy, administration and supervision: a. Policy reform through amendments of the taxation law that is Law No. 28 of 2007 about the General Provisions and Taxation Procedures Law, Law No. 36 year 2008 about income tax, Value Added Tax Law and Indirect Taxes. b. Administration Reform relates to organization, information technology and human resources. In the field of organization, it has made changes to the organizational structure based on each kind of services to be organization with structure based on functions by combining three offices (KPP, KPPBB and Karikpa) become the KPP Pratama. Besides KPP Pratama, there are KPP Madya in every regional office and 2 big Taxpayer KPP exists only in Jakarta. In addition there are special officials called account representative which oversees and serve taxpayer. c. Information technology reforms. The concept is full automation, ons a paperless internal administration, efficiency, customer oriented and built-in control functions. It aims to reduce direct contact with 26 taxpayer so that it ease the taxpayer to fullfill their tax obligation economically, efficiently, effectively, and accurately by the existence of built-in control system. The reform of the supervision is done through: 1) Code of Conduct Commission. The code of conduct expressly includes the obligation and the prohibition for employees, including the application of strict sanctions. In addition, it is formed two Sub Directorate that handle internal oversight to the implementation of the code of ethics. 2) National Data Bank. The plan serves as the center of archives containing data storage of taxpayer all over Indonesia. 3) Complain channel as a way to ease taxpayer in conveying problems and complaint. 5. Reform of the Taxation Administration System Tax reform is a fundamental change in all aspects of taxation. Tax reform which become the priority regarding to the modernization of the tax administration of the medium-term (three to six years) with the purpose of achievement for, the high level of voluntary compliance, confidence in the tax administration, and high productivity of tax officer, Anggito Abimayu (2003) in Rapina, Jerry and Yenni (2011: 8). The other purposes of the reform of the administration is to improve administration and anticipate improvements to achieve better results. The motivation of doing tax reform to finance state expenditure. 27 The definition of administrative reform is extensive due to the wide range of activities involved in it. Since 2002, Directorate General of Taxes (DJP) has launched the change program or the reform of the administration of taxation which is briefly referred to the modernization. The soul of the program is the implementation of good governance, namely the application of the tax administration system that is transparent and accountable, by using the technology information system which is reliable and up-to-date. According to Liberti Pandiangan (2008: 64) modernization of carried out taxation is part of a grand design of comprehensive tax reform. As being targeted since 2002, that tax reform in a comprehensive manner is made into three main areas which is directly touch the pillar of taxation, namely: 1) Administration field, which is through the modernization of tax administration Through the modernization of the taxation administration, it is expected to create the pillars of good and strong national taxation management as a good and sustainable fundamental of state revenue. In this case, the management of taxation is basically not avoid to the views, opinions, or critics from various external parties. The Directorate General of Taxes try to be transparent and make it as input in setting up and building a good and modern taxation management system. 28 2) Regulation field, by making amendments to the Taxation Law From taxation law aspects, it keeps try to create and develop juridical formality and material of taxation. It can be done by making adjustment and regulation regarding to the current developments in life of society, state, or economic activity. The reason is a rule, basically, should be able to follow and being followed by the life of society, state, and stakeholders. If not, then the regulation could be a barrier even contradictory, so that the achievement of the targets can be incompatible with what is expected. 3) Supervision field, creating bank of data of the national taxation In the field of supervision, it is built a national data bank of taxation as an effort to revitalize the implementation of self-assessment system with the official assessment in the calculation and determination of the magnitude of the tax payable, as provided for in the taxation law. In addition, the construction of data bank of national taxation is also aimed to undertake extensification and intensification activities of taxation. Through the activities of extensification, based on data and information that it is ordered for people who has been qualified to register as a Taxpayer to obtain a Tax Identification Number. For personal subject, the limit is for those who have obtained the above nontaxable income either already married or not married. After the society know this appeal, and apparently people have not enrolled themselves as Taxpayer correlating with self-assessment 29 system, to make it balance, so it publish officially Tax Identification Number (official assessment). Through extensification, the expansion of the tax base in which there is the increase the number of taxpayer, especially personal taxpayer. Under such conditions, it does intensification activities to realize aspect of justice. Along with that, the intensification of activities carried out various efforts of activity. One of those through the optimization of the taxation data utilization model (OPDP). According to the Summer, Linn and Archarya quoted by Marcus (2005: 15), the reason to commit tax reform are: 1) As part of the structural adjustment, tax reform is used to reduce the distortion of economic stimulation and the occurrence of the deficiency and inequity in the allocation of resources. 2) As part of efforts to stabilize the economy, tax reform, together with state expenditure cutting, at the same time to generate revenue in a rational without distortion, fair and sustainable. According to the Bird and Jantscher quoted by Marcus Gale (2005: 15), tax policy changes without being supported by the tax changes is not meaningful. Changes in the field of taxation must be in line with its administrative capacity, because the administration of taxation is a policy in the field of taxation which has inseparable relationship. 30 Table 2.2 Differences between the Old system and the New System OLD SYSTEM Tax office organization structure is formed by type of tax, there is no clear separation of functions because it is implemented in one section according to type of tax Monitoring and services function have not been effective due to lack of specialized staff to perform these functions. Inspection management because it is in two units of the tax inspection so that coordination is not good. Taxpayer do their taxation obligation in the form of payment and manual reporting by using the hard copy so that it is less practical Process of Execution of the work for the service of process, supervision, and inspection of the less efficient and far too bureaucratic, so that the relative high cost of compliance. NEW SYSTEM Organization of modern tax service office is formed by a function which leads to improved services to the public / taxpayer of all types of taxes. The existence of supporting specialized staff or selected AR service, and work professionally as services and supervision to the taxpayer. Inspection management is more efficient and effective because it is in one unit of the human resources unit specialized in certain sectors so that coordination function is better. Utilization in development and advances information technology. The facilities include: website, call center, complaint center, e-filing, eSPT, online payment. The process of implementation of the work less efficient and reduce bureaucracy so that cost of compliance is relatively low. With existence of AR, the handling of various aspects of taxation will be monitored more quickly. Source: Iklima Pila Sopia (2008) D. Dimension of Application of Modernization of Taxation Administration System The application of modern taxation administration system through programs and activities in the framework of the reform of the middle-term tax 31 administration is explained in the dimensions of Modern Taxation Administration System as follow: 1. The Organizational Structure Organizational structure is the element that relates to the role of the patterns that have been determined and the relationships between roles, allocation of activities to subunits-separate, the distribution of authority between administrative positions, and formal communication network. (Abdul Rahman:2010:213). a. Establishment of the Organization by Function As a manifestation of revamping in the function of services, supervision and inspection, organizational structure which is based on the decision of the Minister of Finance No. 443/KMK. 01/2001 is drawn up according to the type of tax, where income tax and others (VAT or other indirect taxes) served in tax office, while the Land and building Tax and the Fees for Acquisition of Rights to Lands and Buildings (BPHTB) served by a of Land and Building Tax Services Office. By implementing the modern taxation administration system, organizational structure is designed with paradigm based on clear separation of functions between regional offices and tax offices, where tax offices are responsible to carry out the functions of the services, supervision, billing and inspection, while the regional offices are 32 responsible to carry out the function of supervision of tax offices operational activities, objection and appeal, and investigation. b. Specification of Duty and Responsibility In the organizational structure, there is specification of duty and responsibility, such as: 1) Account Representative. The appointment of an Accounts Representative is special to serve and oversee fulfillment of taxation obligations of taxpayer directly. With the distribution of tasks adjusted to the business group of taxpayer, Account Representative is responsible for providing answers to any questions asked by taxpayer effectively and professionally, especially on taxpayer's Account for all types of taxes, the progress of the inspection process and restitution, interpretation and the affirmation of a rule, the changes of data of the taxpayer’ identity, the action of tax billing and examination, progress of process on objection and appeals, changes of regulation relating to the taxation obligation of the taxpayer. 2) Examination of tax is only conducted by functional examiner with the allocation of functional examiner is adjusted to the level of examination risk and conducted technical training which supports professionalism of examiner according to the of the business group of taxpayer. 33 3) Specialty of other employees such as tax executor and information technology programmer. c. Completing and Perfecting the Taxation Information System Implementation into an Integrated Taxation Administration System Taxation Information system (SIP) is developed into an Integrated Taxation Administration System (SAPT) controlled by the case management in the process of monitoring systems of taxation administration refers to the automation of the office include services, sequencing supervision, supervision of executor and reporting designed in accordance with the current legislation . d. Routine monitoring through a Taxpayer's account Transparency of services and fulfillment of taxation obligations of Taxpayer are supported with the Taxpayer's Account that serves to record automatically any changes that occur to the rights and obligations, objections, balance transfer, notification letter, and other tax documents so that it eases to oversight of taxation rights and obligations for each of the taxpayer. e. The Mechanism of supervision of services and examination Setting standard performance and taxation services, implementing a code of ethics for Civil Servants of tax officer and the establishment of Code of Ethic Committee as well as cooperation with National Ombudsmen Committee will complete the set of surveillance for service and inspection. 34 2. The Organizational Procedures Organization procedures relates to process of communications, decision making, achievement selection, socialization and career. Discussion and an understanding of organizational procedures are based on the activity of the organization that is conducted regularly. (Abdul Rahman:2010:213). a. One Door Services of Account Representative The appointment of the Account Representative which is responsible specifically to serve and supervise the taxation administration of some Taxpayer by developing the concept of one door services so that it can reduce the critical interface between Taxpayer with a tax officer who likely can lead to negative excesses. Account Representative also handles exemption certificate, tax deposit balance transfer, ruling and publishing legal product. b. Simplification of administrative procedures and improvement of the standards of time and quality of service and tax inspection Activities performed include: (i) simplifying the notification letter(SPT), (ii) accelerate the process of resolving the objections and appeals of tax products, (iii) reinforcement of the Taxpayer, (iv) review the criteria of levied taxpayer to reduce he request for restitution, (v) reviewing the obligation of inspection upon each Annual Tax Overpayment Letter (SPT LB) and speed up the restitution 35 of the Annual Tax Overpayment Letter (SPT LB) that is at low risk, (vi) the centralization of value added tax (VAT). c. Support of modern information technology in providing services, supervision, inspection and collection of taxes, among other things: Integrated Taxation System Administration (SAPT) with integrated functions of administrative procedures and approaches that have been arranged in case management and workflow system supported e-system, especially e-payment, e-SPT, e-Registration, eFiling, e-Counseling, complaint center that helps speed, accuracy and security of process data security administration taxation of mandatory tax obligation fulfillment. 3. The Organizational Strategy The organizational strategy is seen as a tactic, point of view, and response that aim to take advantage in all conditions, factors, opportunities, and resources, so that objectives of the organization can be achieved successfully and happily. Strategy is developing from time to time as the meaningful flow pattern of decision. (Abdul Rahman:2010:213). a. Conscious and Care Tax Campaign Campaigns and socialization of taxation as part of good governance framework through various parties, such as universities, religious figures, and also through media, portal websites, as well as 36 the installation of billboards in strategic location and improve the performance of extension as information services and public relation. b. Simplification of Administration of Taxation Information technology support accelerating the process of services and investigation in which the database is developed in the online network will probably allow the acceleration of information access and also reporting services of Notification letter (SPT) and payment of taxes can reduce online administrative cost and compliance cost. 4. The Organizational Culture Organizational culture is defined as a system of dissemination of belief and values developed in the organization and steer the behavior of its members. Organizational culture represents the common perception held by members of the organization. (Abdul Rahman:2010:213). Some of the activities of the modernization of organizational culture, namely: a. Clear and authoritative governance implementation program, Clean and authoritative governance (good governance) is characterized by the existence of a code of ethics of employees in Directorate General of Taxes based on the decision of the Minister of Finance No. 384/KMK. 03/2002 of 27 August 2002, the existence of code of conduct Directorate General of Taxes Committee based on the decision of the Minister of Finance No. 226/KMK. 03/2002 of 14 May 37 2002, the existence of Taxation and Customs and Excise Division at National Ombudsman Committee, any cooperation with the Inspectorate-General of the Department of finance and internal consolidation. b. Apply the code of conduct to all employees in Directorate General of Taxes, the establishment of a code of conduct Committee, increase the effectiveness of supervision by the Inspectorate-General of the Department of finance and cooperation with the National Ombudsman Commission. E. Taxpayer compliance 1. Definition of Compliance Quoted from Desi Handayani, taxpayer compliance can be defined as a situation where taxpayer fulfill their taxation obligations and obtain their taxation rights. According to Kiryanto in Supriyati (2012:7), taxpayer compliance is defined as the behaviour of taxpayer who enter and report the required information in time, fill out correctly the amount of taxes owed, and pay taxes on time, in the absence of coercive action. Non compliance occurs when one of the conditions of the definition are not met. Quoted from Desi Handayani, there are two kinds of compliance, namely formal compliance and material compliance. Formal compliance is a situation where taxpayer comply with tax obligations in accordance with 38 a formal provision in the taxation laws. While the material compliance is a situation where taxpayer substantively meets all material provisions of the taxation. Material compliance may include formal compliance. From several explanations that have described above, it can be concluded that the taxpayer compliance is compliance fulfill all taxation laws, such as taxpayer compliance in registering, compliance in reporting, compliance in the calculation and payment of payable taxes as well as taxpayer compliance in the payment of arrear of payable taxes. 2. The Factors That Affect Taxpayer compliance According to Franzoni in Banu (2008) taxpayer compliance can be seen from several perspectives and it is influenced by several factors: (1) their tendency ons public institutions (in this case the Directorate General of taxes); (2) a justice who is felt by taxpayer from the existing system; and opportunity over the possibility of detected violation and punished in accordance with the existing legislation. Meanwhile, according to Eliyani in Lasnofa (2010) level of compliance is affected by several factors, namely the condition of a country's tax administration system, service on the taxpayer, tax law enforcement, inspection of the taxes and tax rates. Awareness and compliance to meet the obligation of taxation also depends on the willingness of the taxpayer, to the extent that taxpayer will comply with the provisions of the legislation. 39 3. Criteria of Taxpayer compliance According to the Decree of Minister of Finance no. 544/KMK.04/2000, about taxpayer’s criteria that can be given the preliminary tax overpayment as changed with the decree of Minister of Finance no. 235/KMK.03/2003, that taxpayer’s criteria are as follow: a. Timely in delivering notification letter for all kinds of tax in the last two years b. In the last year of lately periodic tax form delivery is not more than 3 periods of tax and not for each kinds of tax and not in a row c. The lately periodic tax form is not delivered more than due date of the next periodic tax form. d. Does not have tax arrears for all kinds of tax, except already received the permission for postponing the tax payment, not including for the tax arrears related with the annual tax form released for the last two year of tax period. e. Has not been ever punished caused by doing criminal action in the area of taxation over 10 years. f. The audited financial statement done by public accounting firm or Development and Financial Supervisory Board must have unqualified opinion or unqualified with explanation as long as the explanation does not influence the fiscal profit and loss. Audited report must be composed widely, presenting reconciliation of commercial and fiscal profit and loss. 40 If the financial statement is not audited by public accounting firm, then the taxpayer should file written request at least 3 months before the end of book period in order to be decided as compliant taxpayer added by requirement of doing bookkeeping for the last 2 years and the taxpayer have been done tax audit. Compliant taxpayer is a taxpayer who comply, fulfill and do all the taxation obligation according to the provision of taxation law and applied regulation. The title of compliant taxpayer contains the meaning of discipline and compliance that is not same with the taxpayer who has the title as the big taxpayer. Because the big taxpayer does not necessarily meet the criteria as compliant taxpayer although it give the big contribution for the state if they still have arrears, delayed payment and tax report. F. Previous Research The research is based on research conducted by Marcus Sofyan (2005) titled “The influence of the implementation of modern taxation administration system on taxpayer compliance in KPP in the area of Directorate General of Taxes”. Abdul Rahman (2009) titled “Correlation Modernization Administration System of Taxation with Taxpayer compliance”. Sri Rahayu (2009) titled "The Influence of The Application of Taxation Adminsitration System on Taxpayer compliance in Tax Service Office (KPP) Pratama Bandung" X ". 41 Lasnofa and Fauzan (2010) with the title "Modernization of Modern Taxation Administration Systems on The Levels of Taxable Enterprise Compliance in Tax Service Office Pratama Padang". Rapina, Jerry and Yenni (2011) with the title "The Influence Of The Application Of Modern Taxation Administration System On Taxpayer compliance”. And Supriyati, with the title “The Impact of Motivation and Knowledge of Taxation to Taxpayer Compliance” Can be seen in table 2.4 below: Table 2.3 Previous Research No 1 2 Researcher Dependent Title (Year) Variable Sofyan Pengaruh Taxpayer (2005) penerapan compliance sistem administrasi perpajakan modern terhadap kepatuhan wajib pajak pada KPP di lingkungan wilayah Direktorat Jendral Pajak Independent Variable Organizational Structure, Organizational Procedure, Organizational Strategy, and Organizational Culture Abdul Rahman (2009) Organizational structure, organizational procedure, organizational strategy, organizational culture Hubungan Modernisasi Administrasi Sistem Perpajakan dengan Kepatuhan Wajib Pajak Taxpayer compliance Research Results The results of this research suggests that there is a positive influence in modern tax administration system on taxpayer compliance, which includes variable of organizational structure, organizational procedures, organizational strategy and organizational culture. The result of the research shows that there is correlation between modern tax administration system and taxpayer’s compliance as much as 90.3%. 42 No Researcher (Year) Title Dependent Variable Independent Variable 3 Sri Rahayu (2009) Pengaruh Taxpayer Penerapan compliance Sistem Administrasi Perpajakan Modern terhadap Kepatuhan Wajib Pajak pada KPP Pratama Bandung Organizational Structure, The Changing of Service Implementation, Service Facilities using Information Technology, Employee Code of Ethics 4 Lasnofa and Fauzan (2010) Pengaruh Modernisasi Sistem Administrasi Perpajakan Modern terhadap Tingkat Kepatuhan Pengusaha Kena Pajak di KPP Pratama Padang Organizational Structure, Service Implementation of Taxable business entity (PKP), Organizational Strategy and Organizational Culture The compliance rates of business entity (PKP) Research Results This indicated that modern tax administration system significantly correlated to taxpayer’s compliance. The results of this research suggested that there is a positive influence in modern taxation administration systems on taxpayer compliance. Administrative system of taxation impact significantly to compliances of taxable enterprise level. The research also showed that the level of compliance by taxpayer to register and pay higher taxes in arrears compared with compliance in the payment and tax reporting. 43 No 5 6 Researcher (Year) Rapina, Jerry and Yeni (2011) Supriyati (2012) Title Pengaruh Penerapan Sistem Administrasi Perpajakan Modern terhadap Kepatuhan Wajib Pajak Dependent Variable Taxpayer compliance Dampak Taxpayer Motivasi dan compliance Pengetahuan Perpajakan terhadap Kepatuhan Wajib Pajak Independent Variable Organizational Structure, Organizational Procedure, Organizational Strategy, and Organizational Culture Research Results The results of this research revealed that there was no influence of organizational culture on taxpayer compliance, while organizational structures, organizational procedures and organizational strategy have influence on taxpayer compliance. Motivation and The results of knowledge of statistical taxation regression test showed that motivation was significantly influence taxpayer compliance on personal taxpayer perception but tax knowledge no has significant influence to taxpayer compliance. Source: Previous Research G. Theoretical Framework Modern taxation administration system is the factor that influences taxpayer compliance. Where all relating to the public service especially for taxpayer, it will be fixed aspect of organization, human resources, until the used technology. It is good that the development of our national taxation leads 44 to a better system through modernization of taxation policy on all lines of the bureaucracy and a system of information technology. This research can be applied in the research model as follows: 45 Figure 2.1 Theoritical Framework Therotical phenomenon Situational phenomena According to law no. 28 of 2007, “tax is the contribution of personal taxpayer or corporation which is forced under the law and not get rewarded directly used for State purposes for people's prosperity citizen”. Tax revenue depends on taxpayer compliace to do their tax duty. Thus, to increase the taxpayer compliance, Directorate General of Taxes does some strategies, such as giving better quality of services and issuing policy that can increase taxpayer compliance. One of policies issued by Directorate Generela of Taxes in implementing good governance is the implementation of modern taxation administration system. Since 2000, with this implementation, it is expected that taxpayer compliance will increase so does state revenue. Theory according to journal and book “The Influence of Modernization Administration System of Taxation to Taxpayer compliance” ” Organizational Structure (X1) Taxpayer compliance (Y) Organizational Procedure (X2) Organizational Strategy (X3) Organizational Culture (X4) KPP Pratama Senen, Jakarta Problem Identification, Hypothesis Data Quality Test (Validity Test, Reliability Test) Classical Assumption Test Multiple Regression Test ( Coefficient Determination test, t-Test, F-Test ) Linear Regression :Y = α + β1X1 + β2X2 + β3X3 + β4X4 + ε Conclusion, Implication and Recommendation 46 H. Hypothesis Development 1. The Influence of Organizational Structure to Taxpayer compliance By implementing the modern taxation administration system, organizational structure is designed based on functions with a clear separation of functions between regional office and tax service office (KPP), where KPP is responsible to carry out the functions of services, supervision, collection, and inspection, while the responsibility of regional office are implementing the function of supervision on KPP’s operational implementation, objection and appeal, and investigation. In addition, there is a separation of duties and responsibilities, such as the existence of an Account Representative which is responsible for providing answers to any questions asked by taxpayer effectively and professionally, especially on taxpayer’s account for all types of taxes, the progress of the inspection process and restitution, interpretation and the affirmation of a rule, the data changes of the identity of the taxpayer, tax billing and examination actions, progress of objection and appeals process, regulatory changes with regard to the tax obligation the taxpayer. Thus, taxpayer are given the ease so it could increase taxpayer compliance in meeting the obligations of the taxation. Therefore, it is formulated a hypothesis as follows: Hypothesis 1: implementation there of the is significant organizational influence structure between to the taxpayer compliance. 47 2. The influence of Organizational Procedures to Taxpayer compliance The existence of one door services Account Representative is responsible specifically for servicing and supervising the administration of taxation of some taxpayer by developing the concept of one door services so it can reduce the critical interface between taxpayer and tax officer who likely can lead to negative excesses. This is very good to improve taxpayer compliance so that no chance for taxpayer and fiscal officer for cheating. Account Representative also handles Tax Exemption Certificate, tax deposit balance transfer (PBK), and ruling publishing legal product. In addition, the simplification of administrative procedures and the improvement of standards of time and quality of services annual tax return and tax examinations. Activities performed include (i) simplifying the notification letter (SPT), (ii) accelerating the process of objections and appeals of tax products, (iii) reinforcement inaugural of the Taxpayer, (iv) reviewing the criteria of taxpayer to reduce request for restitution, (v) reviewing the obligation of inspection upon each Annual Tax Overpayment Letter (SPT LB) and accelerating the restitution of low risk Annual Tax Overpayment Letter (SPT LB), (vi) the centralization of value added tax (VAT). Therefore, the organizational; procedures allegedly would affect taxpayer compliance in paying taxes. Based on these things, then, it is formulated the hypothesis as follows: 48 Hypothesis 2: There is significant influence between the implementation of the organizational procedures to taxpayer compliance. 3. The Influence of The Organizational Strategy to Taxpayer compliance Organizational strategy is the campaign of tax care and awareness. Campaign and socialization of taxation as part of good governance framework through various parties, such as universities, religious figures, and also by media, portal websites, as well as the installation of billboards in strategic place and improve the performance of illumination as information services and public relation. In addition, the organizational strategy is also done by Simplification of Taxation Administration. The support from Information technology that accelerate the process of services and investigation in which the database is developed in the online network allowing the access to information and also reporting services of notification letter (SPT) and online payment of taxes can reduce administrative cost and compliance cost. With the existence of tax care and awareness campaign, and simplification of taxation administration, it is expected that taxpayer can find out their taxation obligations thereby it can increase taxpayer compliance in meeting the obligations of the taxation. Based on these things, then it is formulated the hypothesis as follows: 49 Hypothesis 3: There is Significant Influence between the Implementation of The Organizational Strategy to Taxpayer compliance. 4. The Influence of Organizational Culture to Taxpayer compliance Some activities of the organizational culture modernization is Program of Implementation of Clean and Authoritative Government (Good Governance). Clean and authoritative government (good governance) is characterized by the existence of a code of ethics of Directorate General of Taxes Employees based on the decision of the Minister of Finance No. 384/KMK. 03/2002 of August 27, 2002, the existence of code of conduct Committee of the Directorate General of Taxes based on the decision of the Minister of Finance No. 226/KMK. 03/2002 of 14 May 2002, the existence of Division of taxation and Customs and Excise at National Ombudsman Committee, any cooperation with the Inspectorate-General of Department of finance and internal consolidation. Besides, other organizational culture activities are the implementation of code of ethics to all employees of Directorate General of taxes, the establishment of a Code of Ethic Committee, increasing the effectiveness of supervision done by the Inspectorate-General of the Department of finance and cooperation with the National Ombudsman Commission. 50 With the Good Governance and implement a code of ethics to all employees of Directorate General of Taxes, it is expected to enhance the trust of taxpayer on the performance of Directorate General of taxes employee, so that taxpayer would like to meet the obligations of the taxation. Based on these things, then it is formulated the hypothesis as follows: Hypothesis 4: There is Significant Influence between the Implementation of The Organizational Culture to Taxpayer compliance. 51 CHAPTER III RESEARCH METODOLOGY A. Scope Of Research This research is conducted in the tax service office (KPP) Pratama Senen, Jakarta. This research aims to know the influence of modern taxation administration system implementation on taxpayer compliance. Unit of analysis used in the study is the individual level with research samples are registered taxpayer in KPP Pratama Senen, Jakarta. The criteria of this research is the respondent must be registered as taxpayer in the tax service office (KPP) Pratama Senen, Jakarta. B. Sampling Method Population is a group of people, events, or anything that has certain characteristics. Population in this study is the taxpayers that are registered in tax service office (KPP) Pratama Senen, Jakarta. Sample is representative of the population that will be measured. Sample size, according to Sri Rahayu (2005: 45), is the number of individuals, subject, or element of the population that is taken as a sample. If the size of samples taken are too small or too large then it would be a problem in the research. In this research, researcher uses 100 samples from a population that exists in the KPP Pratama Senen, Jakarta. 52 52 Sample research method used is a non probability sampling, convenience sampling. Convenience sampling refers to the collection of information from members of the population who are conveniently available to provide it. Convenience sampling is most often used during the exploratory phase of a research project and is perhaps the best way of getting some basic information quickly and efficienctly. (Sekaran and Bougie,2010:276). C. Data Collection Methods 1. Primary Data The primary data used in this research are: a. Questionnaire Data collection techniques is by spreading the list of questions directly to taxpayer in KPP Pratama Senen, Jakarta. So, data collected by researcher are really reflecting to the real condition at the time of the research underway. b. Interview Researcher conducts interviews with official of the KPP Pratama Senen, Jakarta which is directly related to the research targets. Besides, researcher also interviews the taxpayer for the purpose of filtering the required information for the research. In questionnaire method, researchers usually used Likert scale to examine how strong respondents agree or disagree with statements on a five- point scale with the following anchors. 53 Table 3.1 Scale Likert No Type of Answer Weight 1 Strongly Agree (SA) 5 2 Agree (A) 4 3 Neutral (N) 3 4 Disagree (D) 2 5 Strongly Disagree(SD) 1 2. Secondary Data Secondary data is indirect data collection method about the object of research obtained through literature review such as books, journals, magazines, or others which are considered to have the relationship with the research. D. Data Analysis Method 1. Descriptive Statistics Data analysis method used in this research is the analysis of the statistics method in which the calculation is carried out by using SPSS 20. This analysis aims to determine the influence of variables organizational structure (X1), organizational procedures (X2), organizational strategy (X3), organizational culture (X4) on taxpayer compliance (Y). 54 2. Data Quality Test a. Validity Test Validity test is a test of content of instrument to measure the validity of instrument used in the research. Among some tools of validity test analysis, researcher uses Pearson Correlation to test validity of obtained data. Criteria of decision making to determine the validity of data is if the value of r test > r table of 0.05 (5%) significant value, while if the value of r test < r table, so the instrument is considered invalid and must be separated from next analysis. This validity test uses SPSS 20.0 b. Reliability Test Data Reliability test is used to measure that the variables used are completely free from errors so that it can produce consistent results even though it is tested many times. Reliability calculations is performed by using Cronbach Alpha method. The alpha value varies from 0-1 a question can be categorized alpha reliability if the value is greater than 0.60 in (Ghozali, 2009:46). 3. Classic Assumption Test a. Normality Test 55 According to Zulkifli Matondang, 2009, normality test is conducted in purpose to detect whether a set of data will be used as basic start to test hypothesis is empirical data that meets the naturalistic nature. Naturalistic nature is a thought that phenomena (symptoms) occur in this nature are natural and patterned. Widhiarso said that normality tests are some tests to measure whether our set of data having normality distribution so it can be used in parametric statistic. Tests of normality become important because this is a parametric test and have to normal distributed (Haryadi and Winda, 2011). So, normality tests are some kind of tests to clarify whether the data obtained are normally distributed and, importantly, represent the whole population or not. In this research, researcher will test the distribution of data by seeing Normal Probability Plot (P-P Plot) graph. Normal distribution will form a diagonal straight line and plotting residual data will be compared with diagonal lines. The distribution of residual the data is normal, if the line that describes the actual data follow the diagonal line (Ghozali, 2009:149). b. Multicollinearity Test Multicollinearity test aims to test whether the regression model found a correlation between the independent variables (Ghozali, 2009:95). A good regression model should not happen correlation between the independent variables. To detect the presence or absence 56 of multicollinearity in the regression model can be seen from the value of tolerance and the variance inflation factor opponent (VIF). Multicollinearity views of the tolerance value <0.10 or VIF> 10. Both of these measurements indicate each independent variable which is explained by the other independent variables. c. Heteroscedasticity Test According to Ghozali (2009), the aim from heteroscedasticity test is to test whether the regression model occur the variance inequality of the residual from one observation to another observation. If the variance from residual of one observation to other observations is fixed, it is called homocedasticity and if it different called heteroscedasticity. A good regression model is homocesdasticity or there is no heteroscedasticity. In this study, heteroskedastisity test can be viewed with using the chart Scatterplot between the predicted value of dependent variable (ZPRED) and residual (SRESID). Y-axis becomes the axis that has been predicted and the X axis is the residual (Y predicted-Y actually) that has been in the studentized. Basic for decision-making are as follows: 1) If there is a certain pattern, like dots that are forming a regular pattern (wavy, widening and then narrow), then it indicates that there is heteroscedasticity. 57 2) If there is no clear pattern, as well as the dots spread above and below zero (0) on the Y axis, then it indicates that there is no heteroscedasticity or homocedasticity. 4. Hypothesis Test a. Multiple Regression Test Data processing activities is done by tabulating questionnaire by providing and summing the weights of the answers to each question for each variable. Data analysis using multiple regression statistics techniques is to test the influence of variables independent on dependent variable, that is, to find out the influence of modern taxation administration system implementation on taxpayer compliance, in KPP Pratama Senen, Jakarta. Then, it check the plot of data for checking there is any linear or non-linear data. The regression equations used is: Y = α + β1X1 + β2X2 + β3X3 + β4X4 + ε Where: Y : Taxpayer Compliance α : Constant β1X1 : Organizational Structure β2X2 : Organizational Procedure β3X3 : Organizational Strategy β4X4 : Organizational Culture ε : Standard Error 58 b. Coefficient Determination Test (Adjusted R2) According to Wihandaru S. P., coefficient of determination (R2) test is used to measure proportion of dependent variable variance which is explained by independent variable. Determination coefficient is between zero and one. Small value of R2 is the ability of independent variables explaining the dependent variable is very limited. Each additional one independent variable, then R2 is definitely on the rise, no matter whether the variable has an effect on the dependent variable. Therefore, in this study the R Square use are already adjusted R Square or (Adjusted R2) due to the amount of adjusted variable used in the study. Value close to one means that the variable-independent variable gives almost all the information needed to predict the variation in the dependent variable (Ghozali, 2009:98). c. Partial Regression Testing (t-test) T test basically shows how far the influence of one independent variable individually in explaining the variation of dependent variable. Probability is smaller than 0.05, then the result is significant means there is the influence of the independent variable individually on the dependent variable (Ghozali, 2009:164) d. Significant Simultaneous Test (Test Statistic F) F test basically shows whether all independent variables included in the model have simultaneously effect on the dependent variable. The probability is less than 0.05, then the result is significant means there is 59 the influence of the independent variable on the dependent variable, jointly (Ghozali, 2009:88). E. Operational Research Variables Variables contained in the research are organizational structure (X1), organizational procedures (X2), organizational strategy (X3), organizational culture (X4) and levels of taxpayer compliance (Y). 1. Independent Variable a. Organizational Structure a) The establishment of the organization by function As a manifestation of revamping of services function, supervision function and inspection function, organizational structure, based on the decision of the Minister of Finance No. 443/KMK. 01/2001 is drawn up according to the type of tax, where taxable income (PPh) other value added tax (VAT/PTLL) served in KPP, while the Land and Building Tax (PBB) and the Duties on land and building transfer (BPHTB) served by Land and Building Tax Services Office (KPPBB). By implementing the modern tax administration system, organizational structure is designed with paradigm based on functions with a clear separation of functions between regional office and KPP, where KPP is responsible to carry out the functions of services, supervision, collection and inspection, while the regional office is responsible to implement the function of 60 supervision on KPP’s operational implementation, objection and appeal, and investigation. b) Specification of the duties and responsibilities, such as: Account Representative. The appointment of an Account Representative to serve and oversee fulfillment of taxation obligations of taxpayer directly. With the division of tasks adjusted to the business group of taxpayer, Account Representative is responsible to provide answers to any questions asked by taxpayer's effectively and professionally, especially on taxpayer’s account for all types of taxes, the progress of the inspection process and restitution, interpretation and the enforcement of a rule, the data changes of taxpayer identity, tax collection and examination actions, progress of appeals and objection process, regulatory changes with regard to the obligation of taxation of the taxpayer. Tax inspections is only conducted by the functional examiner with the allocation of functional examiners adjusted with the level of examinantion risk and held a technical training which supports the professionalism of inspectors based on the business group of taxpayer. Other employees’ specialization tax juru sita pajak and programmer of information technology. c) Completing and perfecting the implementation of Taxation Information System into an Integrated Taxation System Administration (SAPT) 61 Taxation Information System (SIP) was developed into an Integrated Taxation Administration System (SAPT) controlled by the case management in the monitoring systems of taxation administration process refering to the automation of office including services, supervision of executor and reporting designed in accordance with the legislation in force. d) Routine monitoring through taxpayer’s account Transparency of service and fulfillment of taxation obligations of Taxpayer are supported with the Taxpayer's Account that serves to record automatically any changes that occur to the rights and obligations, objection, balance transfer, notification letter, and other tax documents to ease oversight of tax rights and obligations for each taxpayer. e) Supervisory Service And Inspection Lines Setting performance standards and taxation services, implementing a code of ethics of Civil Servants for tax employees and the establishment of Code of Ethic Committee and cooperation with National Ombudsmen Committee increasingly complement surveillance device of service and inspection. In the questionnaire, there are 4 main points of questions and measured using interval scale. 62 b. Organizational Procedures a) One Door Service, Account Representative The appointment of the Account Representative is responsible specifically to serve and supervise the administration of taxation of some taxpayer by developing the concept of one door services, so it can reduce the critical interface between taxpayer and tax officer who likely can lead to negative excesses. Account Representative also handles exemption certificate, tax deposit balance transfer, ruling and publishing legal product. b) Simplification of administrative procedure and increased of time and service quality standards and tax inspection Activities performed include: (i) simplifying the notification letter(SPT), (ii) accelerate the process of resolving the objections and appeals of tax products, (iii) reinforcement of the Taxpayer, (iv) review the criteria of levied taxpayer to reduce he request for restitution, (v) reviewing the obligation of inspection upon each Annual Tax Overpayment Letter (SPT LB) and speed up the restitution of the Annual Tax Overpayment Letter (SPT LB) that is at low risk, (vi) the centralization of value added tax (VAT). In the questionnaire, there are 9 questions and measured using interval scale. 63 c. Organizational Strategy a) Conscious and Care Campaign Tax Campaigns and socialization of taxation as part of good governance framework through various parties, such as universities, religious figures, and also through media, portal websites, as well as the installation of billboards in strategic location and improve the performance of extension as information services and public relation. b) Simplification of Administration of Taxation Information technology support accelerating the process of services and investigation in which the database is developed in the online network will probably allow the acceleration of information access and also reporting services of Notification letter(SPT) and payment of taxes can reduce online administrative cost and compliance cost. In the questionnaire, there are 7 main points of questions and measured using interval scale. d. Organizational Culture Some of the modernization of organizational culture activities, namely: 1) Clear and authoritative governance implementation program, Clean and authoritative governance (good governance) is characterized by the existence of a code of ethics of employees in Directorate 64 General of Taxes based on the decision of the Minister of Finance No. 384/KMK. 03/2002 of 27 August 2002, the existence of code of conduct Directorate General of Taxes Committee based on the decision of the Minister of Finance No. 226/KMK. 03/2002 of 14 May 2002, the existence of Taxation and Customs and Excise Division at National Ombudsman Committee, any cooperation with the Inspectorate-General of the Department of finance and internal consolidation. 2) Apply the code of conduct to all employees in Directorate General of Taxes, the establishment of a code of conduct Committee, increase the effectiveness of supervision by the InspectorateGeneral of the Department of finance and cooperation with the National Ombudsman Commission. In the questionnaire contained 7 rounds of questions and measured using a scale interval. 2. Dependent Variable a. The Level of Taxpayer compliance Taxpayer compliance in fulfilling the obligation of taxation is basically reflected in 3 ways, namely: 1) Fulfillment of interim obligations such as payment of periodic and annual taxes and submission of periodic Notification letter(SPT) including SPT, VAT and PPnBM held each month and annual SPT in each year. 65 2) Fulfillment of annual obligations, such as counting and paying off the tax debt, as well as reporting the calculation of SPT in late years. 3) Fulfillment of material and formal juridical provisions of taxation through accounting treatment for revenue and expense recognition as well as other various financial transactions to acquire the basic calculation of tax payable reflected in bookkeeping of taxpayer. 4) Taxpayers always carry out the obligations of taxation that are applicable in accordance with the regulations that are being implemented by the Directorate General of taxes. In the questionnaire, there are 6 main points of questions and measured using interval scale. 66 Table 3.2 Research Operational Variables Variable Organizational Structure Organizational Procedures Organizational Strategy Dimension Improving the functioning of the service and inspection 1. 2. 3. 4. Indicator ease of checkout lines Separation of function Account Representative. Taxpayer account 1. changes to the service and examination method 2. Innovation processes 3. change in method of operation 1. Simplification of procedures. 2. Inspection Service through computerization. 3. Simplification of the forms 4. Time, the volume of service and inspection. 5. Adequate facilities 6. In accordance with the Service Regulations 7. Service of one door is an Account Representative. 8. The simplification of administrative procedures, improvement of service quality standards, and tax examinations. 9. Modern information technology support. 1. Dissemination and outreach 2. E-system 3. Training 1. The campaign was aware of and concerned about taxes. 2. Tax payments online. 3. The dissemination and outreach. 4. The intensification of tax revenue 5. the investigation of a criminal offence 6. Conducting training on engineering methods and excellent service. Scale Interval Interval Interval Continued in the next page 67 Table 3.2 (continued) Variable Organizational Culture Taxpayer Compliance Dimension Indicator The value and 1. The duties and responsibilities of Norms the Organization's procedures 2. The view of the implementation of the work 3. Identity work 4. The suitability of the tasks and responsibilities. 5. The behavior of officers 6. Good Governance 7. Employee tax qualified and professional. Taxpayer compliance in meeting the obligations of the taxation. The delivery and reporting of SPT Calculate the Pph correctly Pay taxes owed on time The e-system so as to encourage taxpayer to perform its obligations 5. Fill in the SSP/SPT correctly. 6. No tax arrears for all types of taxes. Scale Interval 1. 2. 3. 4. 68 Interval CHAPTER IV RESULT AND ANALYSIS A. An Overview Of The Research Object 1. A brief history of The Tax Service Office (KPP) Pratama Senen¸Jakarta Before 1984, Tax Services Office (KPP) Pratama Senen, Jakarta was named Tax Inspection Office of Central Jakarta III which was under the coordination of the regional office III of Directorate General of Tax Paripurna. Based on the Minister of Finance of the Republic of Indonesia decision (No. 994/KMK. 01/1984), Tax Inspection Office of Central Jakarta III was under coordination of the regional office XI of Directorate General of Taxation Paripurna in 1984. According to decision of the Minister of Finance of the Republic of Indonesia (No. 276/KMK. 01/1989 on March 25th, 1989), Tax Inspection Office of Central Jakarta III was divided into two offices, namely: a. Tax Inspection of Central Jakarta III It is located at Jalan Kwini No.7-Jakarta Pusat. The working area includes Kemayoran sub-district and Cempaka Putih sub-district b. Tax Inspection of Central Jakarta VI It is located at Jalan Kramat Raya No. 136-Central Jakarta. Senen subdistrict is the working area of Tax Inspection of Central Jakarta VI. 69 69 The Minister of Finance of the Republic of Indonesia decision (No. 758/KMK. 01/1993 dated August 3rd, 1993) declared that the Tax Inspection Offices of Central Jakarta VI was changed into Tax Service Office (KPP) of Central Jakarta III. Tax Service Office (KPP) of Central Jakarta III is under coordination of the regional office V of Directorate General of Tax Jaya II. Directorate General of Taxes changed the name of Tax Service Office (KPP) of Central Jakarta VI which becomes Tax Services Office (KPP) Senen and the Tax Service Office (KPP) of Central Jakarta III which divided into Tax Services Office Kemayoran and Tax Services Office Cempaka Putih. Those were based on the Minister of Finance decision No. 94/KMK. 01/1994. In accordance with the Minister of Finance of the Republic of Indonesia decision No. 443/KMK. 01/2001, Tax Service Office (KPP) Senen is under coordination of the regional office VI of Directorate General of Tax Jaya III which is change into the regional office of Directorate General of Tax Jakarta I. Regarding to the decision of the Minister of Finance of the Republic of Indonesia No. 254/KMK. 1/2004 May 24th, 2004, Tax Service Office (KPP) Senen was changed into Tax Services Office (KPP) Pratama Senen,Jakarta which uses Modern Taxation Administration System. 70 2. Vision and Mission of Tax Services Office Pratama Senen, Jakarta a. Vision Become a trustable and proud social services which organize world class system and tax management model. b. Mission 1) Fiscal Gathering local income from tax sector which could support independence governmental financing according to the tax law with a high affective and efficiency level. 2) Economics Supporting the Government policy to overcome the nation's economic problems with an wisdom that taxation minimizing distortion. 3) Politics Supporting the process of democratization of the nation 4) Institutional Always keep self improvement along with the society aspiration, tax technocracy and up to date tax administrative system. 3. Duties and Functions Based on the Minister of Finance, Tax Services Office (KPP) Pratama Senen, Jakarta is the vertical institution of the Directorate General of Tax 71 which has direct responsibility to the head of regional office of the Directorate General of Tax Jakarta I. The main task of Tax Service Office (KPP) Pratama Senen, Jakarta is doing counseling, servicing, and supervising the tax payer in the term of income tax, value added tax (VAT), tax on luxury goods, the other indirect taxes, land and building tax (PBB) as well as duties on land and building transfer (BPHTB) in the area of its authority which is based on the applicable law. In this case, the area of Tax Service Office (KPP) Pratama Senen, Jakarta is at the region of Senen sub-district. In doing its task, the Tax Service Office (KPP) Pratama Senen, Jakarta performs several activities: a. Collecting, searching, and processing of data, taxation potential observation, taxation information disclosure, data collection of the object and the subject of taxes, and the assessment of land and building tax. b. Determining and publishing the products of tax law. c. Administering documents and files of taxation, receiving and processing of the notification letter and the other letters. d. Tax counseling e. Implementation of taxpayer registration f. Implementation of Extensification g. Administration of the tax receivable and implementation of tax collection 72 h. Implementation of the tax inspection i. Supervision in the compliance of tax payer with tax obligation j. Implementation of tax consultation k. Implementation of Intensification l. Implementation of the administration of the Tax Service Office (KPP) Pratama. Tax Service Office (KPP) Pratama Senen, Jakarta covers all regions in Senen sub-district which contains 6 villages: a. Village Senen (Kelurahan Senen) b. Village Paseban (Kelurahan Paseban) c. Village Kenari (Kelurahan Kenari) d. Village Kramat (Kelurahan Kramat) e. Village Kwitang (Kelurahan Kwitang) f. Village Bungur (Kelurahan Bungur) 4. Characteristic of Sample The questionare has been distributed to 100 individuls taxpayer in Tax Service Office (KPP) Pratama Senen, Jakarta and all of the questioners are returened. There are 86 questionnaires (86%) can be processed because 9 questionnaires (9%) do not meet criteria as a sample and 5 questionnaires (5%) are not filled completely by the respondents. The description of the samples is presented in table 4.1. 73 Table 4.1 Questionnaires Distribution Questionnaires Questionnaire Distributed Questionnaire are Returned Questionnaire can be processed Questionaire can not be processed Questionaire used for research Source: Data are process Total 100 100 86 14 86 Percentage 100% 100% 86% 14% 86% 5. Characteristic of Respondents In this research, the respondents are the tax payers registered at the Tax Service Office (KPP) Senen, Jakarta. The questionnaires are addressed to employees of the company who has authorization of company taxation. The authorities include tax calculation, tax payment, filling and reporting the notification letter (SPT) to Tax Service Office (KPP). Those tasks are usually done by the manager or the staff taxes. The characteristics of respondents are presented in table 4.2 Table 4.2 Characteristic Respondents Description Gender Age Job Information Man Female < 25 years old 26 – 35 years old 36 – 40 years old >40 years old Director Manager Staff of Taxation Employees Others Total 61 25 10 37 20 19 7 13 8 48 10 74 Continued in the next page Old Work Formal Education Table 4.2 (Continued) <2 years 2 – 3 years 3 – 4 years 4 – 5 years >5 years Senior High School Diploma Bachelor degree (S1) Others 13 13 12 11 37 29 18 35 4 According to the table 4.2, there are 61 people as the male respondents, while the female respondents are 25 people. There are 10 people who are less than 25 years old are. Respondents aged 18 – 35 years old are 37 people, respondents aged 35 – 40 years old are 20 people, and respondents aged over 40 years old are 19 people. Regarding the job of respondents, there are 7 respondents as directors, 13 respondents as manager, 8 respondents as taxation staff, 48 respondents as employees, and 10 respondents working outside those jobs. Based on the experience of the respondents, there are 13 respondents worked more or less than 2 years, 13 respondents worked for 2 – 3 years, 12 respondents worked for 3 – 4 years, 11 respondents worked for 4 – 5 years, and 37 respondents worked above 5 years. In the education level, the respondents are dominated by bachelor degree as much as 35 respondents. In the other hand, there are 18 respondents who have diploma level and 29 75 respondents who have senior high school level, and 4 respondents who have level of education outside those levels. B. Analysis and Discussion 1. Test Results of Descriptive Statistics Descriptive statistics provide an overview of the minimum value, maximum value, average value (mean) and standard deviation (standard deviation) of the data used in the study. Table 4.3 Descriptive Statistics ST PO SO BO KWP Valid N (listwise) N 86 86 86 86 86 86 Descriptive Statistics Minimum Maximum Mean 12 20 16.01 27 45 37.08 21 35 29.00 21 35 28.45 18 30 24.52 Std. Deviation 2.128 3.605 2.866 3.176 2.647 Source: Primary Data Output From SPSS 20 Table 4.3 above describes that the total number of respondents (N) is 86. There are 4 independent variables which are organization structure, organizational procedures, organizational strategy, and organizational culture. The minimum value, maximum value, mean, and standard deviation of organization structure (ST) are 12, 20, 16.01, and 2.128, respectively. The minimum and maximum value of organizational procedures (PO) is 27 and 45, respectively. The mean value of PO is 37.08 while the standard deviation is 3.605. The lowest value of 76 organizational strategy (SO) is 21 and the highest value equals to 35. The average SO variable is 29.00. The standard deviation is 2.866. Organizational culture (BO) has a minimum value of 21, maximum value of 35, mean value of 28.45, and standard deviation of 3.176. In the other hand, there is a dependent variable which is taxpayer compliance. The minimum value is 18, the maximum value is 30, mean value is 24.52, and standard deviation 2.647. 2. Result of Data Quality Test a. Results of Validity Test Validity test is done by comparing the correlation score or r-statistic which is gotten from the score of respondent answer for each question with r-table. In this research, the value of r-table is 0.213 obtained from a number of cases (N)-2, or 86 – 2 = 84 with the level of significance 5. Every question in the questioner is valid if r-statistic is greater than or equal to rtable (Imam Ghozali, 2009: 49). There are 4 questions regarding organizational structure (ST). Based on the test results obtained, all questions are valid due to the coefficient of correlation (r-statistic) ≥ r-table. The results of validity test of organizational structure (ST) with 86 respondents can be shown in table 4.4. 77 Table 4.4 Results of Validity Test Variable Organizational Structure Statements Value r-statistic Value r-table 0,213 ST1 0,562 0,596 0,213 ST2 0,594 0,213 ST3 0,460 0,213 ST4 Source: Primary Data Output From SPSS 20 Criteria Valid Valid Valid Valid Table 4.5 shows the results of the validity test of the organizational procedure (PO). Table 4.5 Results of Validity Test Variable Organizational Procedure Statements Value r-statistic Value r-tabel 0,574 0,213 PO1 0,420 0,213 PO2 0,418 0,213 PO3 0,425 0,213 PO4 0,566 0,213 PO5 0,513 0,213 PO6 0,448 0,213 PO7 0,508 0,213 PO8 0,460 0,213 PO9 Source: Primary Data Output From SPSS 20 Criteria Valid Valid Valid Valid Valid Valid Valid Valid Valid Organizational procedure (PO) consists of 9 questions. From the table above, the value of r-statistic is higher than r-table. It means that all questions regarding organizational procedure which is distributed to 86 respondents are valid. Table 4.6 shows the results validity test of organizational strategy (SO). 78 Table 4.6 Results of Validity Test Variable Organizational Strategy Statements Value r-statistic Value r-table 0,585 0,213 SO1 0,516 0,213 SO2 0,624 0,213 SO3 0,417 0,213 SO4 0,424 0,213 SO5 0,578 0,213 SO6 0,452 0,213 SO7 Source: Primary Data Output From SPSS 20 Criteria Valid Valid Valid Valid Valid Valid Valid Organizational strategy (SO) consists of 7questions. From the table above, the value of r-statistic is higher than r-table. It means that all questions regarding organizational strategy which is distributed to 86 respondents are valid. Table 4.7 Results of Validity Test Variable Organizational Culture Statements Value r-statistic Value r-table 0,438 0,213 BO1 0,421 0,213 BO2 0,414 0,213 BO3 0,406 0,213 BO4 0,570 0,213 BO5 0,675 0,213 BO6 0,595 0,213 BO7 Source: Primary Data Output From SPSS 20 Criteria Valid Valid Valid Valid Valid Valid Valid Based on table 4.7, organizational culture (BO) consists of 7questions. From the table above, the value of r-statistic is higher than r-table. It means that all questions regarding organizational culture which is distributed to 86 respondents are valid. 79 Table 4.8 Results of Validity Test Variable Taxpayer Compliance Statements Value r-statistic Value r-table 0,564 0,213 KWP1 0,450 0,213 KWP2 0,518 0,213 KWP3 0,455 0,213 KWP4 0,451 0,213 KWP5 0,498 0,213 KWP6 Source: Primary Data Output From SPSS 20 Critera Valid Valid Valid Valid Valid Valid Based on table 4.8, taxpayer compliance (KWP) consists of 6 questions. From the table above, the value of r-statistic is higher than r-table. It means that all questions regarding taxpayer compliance which is distributed to 86 respondents are valid. b. Result of Reliability Test Reliability test can be done after doing validity test. The purpose of reliability test is to indicate the level of internal consistency reliability technique used in measuring the coefficient of Cronbach's Alpha with the help of the program SPSS 20. The range value of alpha is between 0 and 1, a question is reliable if the value of alpha is greater than 0.60 (Ghozali, 2009: 46). The result of reliability test can be seen in table 4.9 80 Table 4.9 Result of Reliability Test Cronbach's Alpha Number of Items Explanation Organizational Structure 0,755 4 Reliable Organizational Procedure 0,793 9 Reliable Organizational Strategy 0,786 7 Reliable Organizational Culture 0,779 7 Reliable Taxpayer Compliance 0,749 6 Reliable Variables Source: Primary Data Output from SPSS 20 Table 4.9 shows the value of cronbach's alpha. The value of alpha in organizational structure is 0.755, in organizational procedure is 0.793, in organizational strategy is 0.786, in organizational culture is 0.779, and in taxpayer compliance is 0.749. Thus, it can be concluded that all variables are reliable because the value of cronbach's alpha is greater than 0.60. Every question used will be able to obtain consistent data. It means that the question will provide relatively the same answer even though it was tasted many times. 81 3. Result of Classic Assumption a. Result of Normality Test The aim of normality test is to know the distribution of data used in the research. A good data should be normally distributed. One of the ways to detect whether the data are normally distributed data or not can be done by using graph analysis namely Normal Probability Plot (P-P Plot). The data is normally distributed when the dots spread around the diagonal line and follow the direction of the diagonal line. The result of normality test can be seen in figure 4.1 Figure 4.1 Result of Normality Data Test Source: Primary Data Output from SPSS 20 From the P-P Plots diagram above, it can be seen that the dots spread around the diagonal line and follow the direction of a diagonal 82 spread. Thus, it can be concluded that the distribution of the data close to normal or have met the assumptions of normality. This result also tells that the regression model is qualified to apply due to the assumption of normality test (Ghozali 2009: 149). b. Result of Multicollinearity Test The aim from multicolinearity test is to test whether the regression model found a correlation among the independent variables. In this research, detection of the presence or absence in multicolinearity can be done by calculating value of variance inflation factor (VIF) of each independent variable. Table 4.10 Result of Multicollinearity Test a Coefficients Collinearity Statistics Tolerance Model 1 (Constant) ST PO SO BO .526 .389 .568 .532 VIF 1.902 2.568 1.760 1.879 a. Dependent Variable: KWP Source: Primary Data Output from SPSS 20 Based on table 4.10 above, the result shows that there is no value of variance inflation factor (VIF) of each independent variable which is less than 0.1 or more than 10. So, it can be concluded that there is no multicolinearity. 83 c. Result of Heteroscedasticity Test The aim from heteroscedastisity test is to test whether the regression model occur the variance inequality of the residual from one observation to another observation. A good regression model is homocedastisity or there is no heteroscedastisity. The results of heteroscedastisity by using scatter plot can be seen in the following figure 4.2 Figure 4.2 Result of Heteroscedastic Test Source: Primary Data Output from SPSS 20 Based on figure 4.2 above, it can be seen that the dots spread above and below zero (0) on the Y axis. So, it indicates that there is no heteroscedasticity or homocedasticity. 84 4. Result of Hypothesis Test a. Result of Multiple Regression Test Multiple linear regression analysis uses to know the influence between independent variable on dependent variables. The result of multiple linear regressions can be seen in the table 4.11. Table 4.11 Result of Multiple Regression Test a Model (Constant) ST PO SO BO 1 Coefficients Unstandardized Coefficients B Std. Error .620 2.030 .271 .113 .234 .078 .170 .081 .209 .075 Standardized Coefficients Beta .218 .319 .184 .251 a. Dependent Variable: KWP Source: Primary Data Output From SPSS 20 Based on the data above, it can be formulated into the following equation: Y= 0,620 + 0,271 X1 + 0,234 X2 + 0,170 X3 + 0,209 X4 The equation shows that the constant value of regression is 0.620. It states that if variables organizational structure (ST), organizational procedure (PO), organizational strategy (SO) and organizational culture (BO) value is 0 (zero), then the value of taxpayer compliance will be 0.620 units. 85 The regression coefficient of structure organization is 0.271. It means that the enhancement of one unit in organization structure will increase the taxpayer compliance as much as 0.271 units. The regression coefficient of organization procedures is 0.234. It means that the enhancement of one unit in organization procedures will increase the taxpayer compliance as much as by 0.234 units. The regression coefficient of organization strategy is 0.170. It means that the enhancement of one unit in organization strategy will increase the taxpayer compliance as much as by 0.170 units. The regression coefficient of organizational culture is 0.209. It means that the enhancement of one unit in organization culture will increase the taxpayer compliance as much as by 0.209 units. b. Result of Coefficient Determination Test (Adjusted R2) According to Ghazali (2009:87), coefficient determination test is used to determine how well the independent variables can explain the dependent variable. Table 4.12 below is the results of coefficient determination test (R2): Table 4.12 Result of Coefficient Determination Test (Adjusted R2) b Model R R Square a Model Summary Adjusted R Square 1 .805 .648 .631 a. Predictors: (Constant), BO, ST, SO, PO b. Dependent Variable: KWP Std. Error of the Estimate Durbin-Watson 1.609 2.031 86 Source: Primary Data Output From SPSS 20 The test result indicates the magnitude of the multiple correlation coefficients (R), the coefficient determination (R Square), and the adjusted coefficient determination (adjusted R Square). Based on table 4.12, the value of multiple correlation coefficients (R) is 0.805. It indicates that the variable organizational structure, organization procedures, organizational strategy and organizational culture of taxpayer compliance have very strong relationship. The value of the coefficient determination (R Square) is 0.648 and the adjusted coefficients determination (adjusted R Square) is 0.631. It can be concluded that 63.1% variation of taxpayer compliance can be explained by the variation in the independent variables (organizational structure, organization procedures, organizational strategy and organizational culture), whereas the remaining (36.9%) is explained by other variable which are the knowledge of the taxpayer, the quality of the service, and the application of e-system this research done by Sri Yustianingsih (2011), explain that the knowledge of the taxpayer, the quality of the service and the application of e-system has significant influence to taxpayer compliance. c. Result of Partial Regression Testing (t-test) T test shows how strong the independent variables in explaining the dependent variables and to examine the influences of the independent 87 variables on the dependent variable by using 0.05 as the level of significance (Ghozali, 2009: 164) Table 4.13 t-test (Partial) a Coefficients Model Unstandardized Standardized Coefficients Coefficients B Std. Error Beta (Constant) .620 2.030 ST .271 .113 .218 1 PO .234 .078 .319 SO .170 .081 .184 BO .209 .075 .251 a. Dependent Variable: KWP T Sig. .305 2.398 3.020 2.105 2.775 .761 .019 .003 .038 .007 Source: Primary Data Output From SPSS 20 The result of T-test can be seen in table 4.14. It implies that organizational structures, organizational procedures, organizational strategy, and organizational culture have significant influence to taxpayer compliance. These are the explanation regarding the result: 1) The Influence of Organizational Structure to Taxpayer Compliance The value of T-statistic is 2.398. Based on T-table in statistics book, the value of T-table is founded by 1.98. It means that T- statistic is higher than T-table. In the other hand, the significance level is smaller than 0.05 (0.019 < 0.05). It can be inferred that H1 is accepted which means that organization structure has significant influence to taxpayer compliance. 88 The result of this hypothesis is consistent with the research conducted by Rapina, Jerry, and Yenni (2011). The title of the research is "The Influence of Modernization Administration System of Taxation On Taxpayer Compliance at Tax Service Office Pratama Bandung Cibeunying”. They used path analysis as the method. The result of this research revealed that the organizational structure, organizational procedures and organizational strategies simultaneously and partially have significant influence to mandatory compliance on Tax Services Office (KPP) Pratama, Bandung-Cibeunying. 2) The Influence of Organizational Procedure to Taxpayer Compliance The value of T-statistic is 3.020. Based on T-table in statistics book, the value of T-table is founded by 1.98. It means that T- statistic is higher than T-table. In the other hand, the significance level is smaller than 0.05 (0.003 < 0.05). It can be inferred that H2 is accepted which means that organization procedure has significant influence to taxpayer compliance. The result of this hypothesis is consistent with the research conducted by Rapina, Jerry, and Yenni (2011). The title of the research is "The Influence of Modernization Administration System of Taxation On Taxpayer Compliance at Tax Service Office Pratama Bandung Cibeunying”. They used path analysis as the method. The 89 result of this research revealed that the organizational structure, organizational procedures and organizational strategies simultaneously and partially have significant influence to mandatory compliance on Tax Services Office (KPP) Pratama, Bandung-Cibeunying. 3) The Influence of Organizational Strategy to Taxpayer Compliance The value of T-statistic is 2.105. Based on T-table in statistics book, the value of T-table is founded by 1.98. It means that T- statistic is higher than T-table. In the other hand, the significance level is smaller than 0.05 (0.0038 < 0.05). It can be inferred that H3 is accepted which means that organization strategy has significant influence to taxpayer compliance. This is due to the organization strategy implemented appropriately through socialization of taxation which is part of good governance framework. So, this activity can increase taxpayer compliance. The result of this research is in accordance with the research conducted by Lasnofa and Fauzan (2010). The title of their research is "The Influence of Modernization of Tax Administration System to The Level of Compliance of employers taxable (PKP) at KPP Pratama Padang", a method used in this research is simple linear regression. The result of this research explained that organization strategy has 90 significant influence to the level of compliance of employers taxable (PKP) in Tax Service Office (KPP) Pratama, Padang. 4) The Influence of Organizational Culture to Taxpayer Compliance The value of T-statistic is 2.775. Based on T-table in statistics book, the value of T-table is founded by 1.98. It means that T- statistic is higher than T-table. In the other hand, the significance level is smaller than 0.05 (0.0007 < 0.05). It can be inferred that H4 is accepted which means that organization culture has significant influence to taxpayer compliance. Organizational culture in terms of responsibility, discipline, moral, and organizational ethics in doing is good enough. So, it would encourage taxpayer compliance. The result of this research is in accordance with the research conducted by Lasnofa and Fauzan (2010). The title of their research is "The Influence of Modernization of Tax Administration System to The Level of Compliance of employers Taxable (PKP) at KPP Pratama Padang". The method used in this research is simple linear regression. The research found that the modernization of tax administration system-including the organizational structure, service implementation of taxable business entity (PKP), organization strategy, and organizational culture-has influence to the level of compliance of employers taxable (PKP) at KPP Pratama, Padang as 91 much as 24.6%. This result shows that the compliance of employers taxable (PKP) can be explained by the modernization of the tax administration system as much as 24.6% and the remaining (75.4%) is explained by the other factors. d. Result of Significant Simultaneous Test (Test Statistic F) The purpose of F-test is to prove whether the independent variables are simultaneously influence the dependent variable (Ghozali, 2009: 88). The results F-statistic can be seen in the table 4.14. If the probability value is smaller than 0.05 then H5 is accepted, whereas if the probability is greater than 0.05 then H5 is rejected. Table 4.14 F Test (Simultan) a ANOVA Model Sum of Squares Df Regression 385.865 4 1 Residual 209.588 81 Total 595.453 85 a. Dependent Variable: KWP b. Predictors: (Constant), BO, ST, SO, PO Mean Square 96.466 2.588 F Sig. b 37.282 .000 Source: Primary Data Output From SPSS 20 From the table above, F-statistic (37.282) is higher that F-table (2.48) and the significant level (0.000) is lower than0.05. So, H5 is accepted. It implies that the organizational structure, organizational procedures, organizational strategy, and organizational culture influence simultaneously to taxpayer compliance. 92 C. Interpretation 1. The Influence of Organizational Structure to Taxpayer Compliance The result of the research concluded that there is a significance influence between the organizational structures and taxpayer compliance due to significant value is less than 0.05. The result of this hypothesis is consistent with the research conducted by Rapina, Jerry, and Yenni (2011). The title of the research is "The Influence of Modernization Administration System of Taxation on Taxpayer Compliance at Tax Service Office Pratama Bandung Cibeunying”. They used path analysis as the method. This research consists of 4 independent variables namely organizational structure, organizational procedures, organizational strategy, and organizational culture. Based on their research, organizational structure influences taxpayer compliance as much as 9.29%. The positive effect result implies that if the modernization of the organization structure goes well then taxpayer compliance will improve. With the modernization of the organizational structure that work better as the establishment of the organization and no longer function based on the type of taxes, duties and responsibilities of the specifications as a part of monitoring, billing, examination. Pathways ministry supervision and inspection will allow taxpayer to report taxes that will increase taxpayer compliance. 93 2. The Influence of Organizational Procedure to Taxpayer Compliance This research concludes that there is a significance influence between the organizational procedures on taxpayer compliance due to significant value is less than 0.05. The result of this hypothesis is consistent with the research conducted by Rapina, Jerry, and Yenni (2011). The title of the research is "The Influence of Modernization Administration System of Taxation on Taxpayer Compliance at Tax Service Office Pratama Bandung Cibeunying”. They used path analysis as the method. This research consists of 4 independent variables namely organizational structure, organizational procedures, organizational strategy, and organizational culture. Based on their research, organizational structure influences taxpayer compliance as much as 9.29%. The reason is that there is simplicity of the procedure in conducting tax obligation at Tax Service Office (KPP). Therefore, it increases and encourages the tax payers to comply in performing their tax duties. This is due to the modernization of the organizational procedures are account representative responsible specifically serve and oversee the administration of the tax some taxpayer with developing the concept of onestop service, thereby reducing interface between taxpayer with tax officials, which might lead to negative excesses. And the simplification of administrative procedures and increase the time and quality of service 94 standards and tax audits, as simplicity notification letter (SPT), accelerate the resolution of complaints and appeals on products and other taxes. In addition to the support of modern information technology in providing services, supervision, inspection and as the e-billing system that is e-payment, e-SPT, e-Filling, e-Registration, e-Counseling, Complaint center, help desk, call center to facilitate taxpayer in the conduct of their tax obligations so that will increase taxpayer compliance. 3. The Influence of Organizational Strategy to Taxpayer Compliance This research concludes that there is a significance influence between the organizational strategy and taxpayer compliance due to significant value is less than 0.05. The result of this research is in accordance with previous research conducted by Lasnofa and Fauzan (2010). The title of their research is "The Influence of Modernization of Tax Administration System to The Level of Compliance of employers taxable (PKP) at KPP Pratama Padang". The method used in this research is simple linear regression. This study concluded that organization strategy has significant influence on the compliance level of employers taxable (PKP) at Tax Service Office (KPP) Pratama, Padang. 95 It is because the organization strategy implemented appropriately through socialization of taxation which is part of good governance framework. So, this activity can increase taxpayer compliance. This is due to the modernization strategy of the organization that is aware of and concerned tax campaign, with this activity then the taxpayer will be more aware of the rights and obligations of taxation that will cause awareness for taxpayer to meet their tax obligations, in addition to the modernization strategy of the organization to another that is the tax administration simplification supported by information technology and services that accelerate the process of examination in which the data base was developed in the online network allows the speed of access to information and services are also reporting the notification (SPT) and online tax payments that bias complaint reduce cost and administrative cost, with the existence of this system will be more effective and efficient for taxpayer in their tax obligations so doing will encourage taxpayer to do their tax obligations and tax compliance will increase. 4. The Influence of Organizational Culture to Taxpayer Compliance The results of this research explained that there is a significance influence between the organizational cultures on taxpayer compliance due to significant value is less than 0.05. The result of this research is in accordance 96 with previous research conducted by Lasnofa and Fauzan (2010). The title of their research is "The Influence of Modernization of Tax Administration System to The Level of Compliance of employers taxable (PKP) at KPP Pratama Padang". The method used in this research is simple linear regression. The research found that organization culture has significant influence on the compliance level of employers taxable (PKP) at Tax Service Office (KPP) Pratama, Padang. This is due to the implementation of the government program clean and respectable (good governance) is characterized by the existence of a code of conduct personnel directorate general of taxes is based on the number 222/KMK.03/2002 finance minister's decision dated 14 May 2002 as amended by Ministerial Decree 382/KMK.03/2002 financial numbers on 27 August 2002. With the tax code a good employee among other employees and qualified tax professional will foster confidence in the tax assessable to the employee because the employee tax professionals no longer be tax fraud committed by the taxpayer so that tax revenues will go to the state treasury . With the confidence of the taxpayer it will develop tax compliance in conducting their tax obligations. Organizational culture in terms of responsibility, discipline, moral, and organizational ethics in doing is good enough. So, it would encourage taxpayer compliance. 97 CHAPTER V CONCLUSION, IMPLICATION AND RECOMANDATION A. Conclusion The purpose of this research is to examine the influence of tax administration system which includes organizational structure, organizational procedures, organizational strategy, and organizational culture on taxpayer compliance. The total respondents in this research are 86 taxpayer in a tax office located at Central Jakarta. Based on the collected data and tested by using multiple linear regression models, the conclusion can be drawn as follows: 1. The result from multiple linear regression test states that organizational structure has significantly positive influence to taxpayer compliance. The result of this research aligns with previous research results conducted by Rapina, Jery and Yeni (2011). They stated that the modernization of the Organizational structure has an impact on taxpayer compliance. 2. The result from multiple linear regression test states that organizational procedure has significantly positive influence to taxpayer compliance. It is supported by previous research conducted by Rapina, Jery and Yeni (2011) stating. They concluded that the modernization of the organizational procedure has an impact on taxpayer compliance. 98 98 3. The result from multiple linear regression test states that organizational strategy has significantly positive influence to taxpayer compliance. This results is in accordance with the previous research conducted by Rapina, Jery and Yeni (2011), Lasnofa and Fauzan (2010). They found that the modernization of the organizational strategy has an impact on taxpayer compliance. 4. The result from multiple linear regression test states that organizational culture has significantly positive influence to taxpayer compliance. This result is supported by the previous research conducted by Lasnofa and Fauzan (2010). They explained that the modernization of organizational culture has an impact on taxpayer compliance. 5. The result from multiple linear regression test states that independent variables (organizational structures, organizational procedures, organizational strategy, and organizational culture) has simultaneously positive influence to taxpayer compliance. It is supported by the previous research conducted by Sofyan (2005) and Rapina, Jerry and Yenni (2011). B. Implication Based on the conclusions above, the implications of this research are as follows: 1. Based on the research found that the organizational structure has a significant and positive influence on taxpayer compliance, this is due to the presence of the modernization of the organizational structure such as the establishment of 99 the organization by function, the existence of an account representative who assist taxpayer in terms of taxation, in addition to routine monitoring through the accounts of taxpayer that serves to automatically record any changes that occur to the rights and obligations of the taxpayer as a result of the payment of taxes, designation, mind, balance transfer, notification letter (SPT), and other tax documents to ease oversight of tax rights and obligations for each taxpayer. Thus the more good of modernization of organizational structure that carried out the tax office or Director General of taxes (DJP) will increase taxpayer compliance. 2. Based on the results of the study found that the organizational procedure have a significant and positive influence on taxpayer compliance. This is due to the presence of the modernization of organizational procedure as an account representative who is responsible for overseeing the Administration and servicing of special taxation of some taxpayer with developing the concept of service of one door so as to reduce the critical interface between taxpayer with a tax officer who can potentially give rise to excesses of the negative. In addition to the simplification of administrative procedures and examination of taxes, with simplifying of tax administration procedures will facilitate taxpayer in performing the taxes obligation. And with e-system such as epayment, e-SPT, e-Registration, e-Filing, e-Counseling, Complaint center that helps speed, accuracy and security of data administration process of the record 100 tax obligations fulfillment of tax payers, so in doing taxation obligation taxpayer would be more effective and efficient. It is that increase taxpayer compliance obligations in doing taxation. 3. Based on the results of the study found that the organizational strategy had a significant and positive influence on taxpayer compliance. This is due to the modernization of the organizational strategy is a conscious and concerned tax campaign, the campaign was aware of and concerned about this tax taxpayer will better understand and know about taxpayer rights and responsibilities so that will increase compliance with taxpayer in doing taxation obligation. In addition to administrative simplification of taxation with the information technology support service of process and speed up the examination for which the database was developed in the online network allows the speed information access service notification letter (SPT) and tax payments online that bias reduces administrative cost and compliance cost, so it is more effective and efficient for taxpayer. 4. Based on the results of the study found that organizational culture has a significant and positive influence on taxpayer compliance. This is due to the modernization of the culture of the organization there is a code of ethics such as taxation officer human resources qualified and professional, disciplined, accountable so that it will give rise to a sense of trust taxpayer to tax officials. 101 With a sense of confidence in the employee of the tax will generate awareness of taxpayer in doing taxation obligation so will improve taxpayer compliance. C. Recommendation The result states that the organizational structure, organizational procedure, organizational strategy, and organizational culture are important factors for improving taxpayer compliance then organizational structure, organizational procedures, organizational strategy, and organizational culture need to be improved. Recommendation from this research is: 1. Taxpayer has lack of knowledge regarding e-system at Tax Service Office (KPP) Pratama Senen, Jakarta. So, KPP Pratama Senen, Jakarta needs to give socialization to the taxpayer. 2. Application of e-system is included of modernization administration system of taxation, it is needed socialization to the taxpayer so they can use and report their tax obligation using e-system because it can be effective and efficiency for taxpayer. 3. For further research, the researcher needs to describe the researched variables and to enlarge the research object in order to present the qualified research result. 102 REFFERENCES Brotodiharjo, R Santoso. (2003). Pengantar Ilmu Hukum Pajak Edisi Revisi Keempat. Bandung: PT. Revika Aditama. Chaizi, Nasucha. (2004). Reformasi Administrasi Publik Teori dan Praktik. Jakarta : Salemba Empat. Departemen Pendidikan dan Kebudayaan. (2001). Kamus Besar Bahasa Indonesia. Jakarta: Balai Pustaka Fitriah. (2011). Analisis Pengaruh reformasi administrasi perpajakan terhadap kepatuhan wajib pajak pada kantor pelayanan pajak (KPP) Jakarta Tanah Abang Satu. Ghozali, Imam, (2009). Aplikasi Analisis Multivariate Dengan Program SPSS, Edisi Keempat, Penerbit Universitas Diponegoro. Gunadi.(2009). Akuntansi Pajak .Jakarta: PT Gramedia Widiasrana Indonesia Handayani, Desi.(2008). Analisis Hubungan Tingkat Kepatuhan Wajib Pajak Orang Pribadi dengan Penerimaan Pajak Pada Kantor Pelayanan Pajak Pekanbaru. (Jurnal Akuntansi Keuangan dan Bisnis, ISJD volume 1 nomor 1) Iklima, Pila Sophia.(2008).Korelasi penerapan sistem administrasi perpajakan moderen dengan peningkatan penerimaan pajak : studi kasus pada KPP Pratama Depok Ilyas, wirawan B. (2010). Perpajakan Indonesia. Jakarta: Salemba Empat Isnofa dan Fauzan. (2010). Pengaruh Modernisasi Sistem Administrasi Perpajakan terhadap Tingkat Kepatuhan Pengusaha Kena Pajak di Kantor Pelayanan Pajak (KPP) Pratama Padang. Hamid, Abdul.(2012). Pedoman Penulisan Skripsi FEB 2012 Fakultas Ekonomi dan Bisnis UIN Syarif Hidayatullah. Lombantorum, sophar.(2007). Ensiklopedia Perpajakan. Jakarta:Erlangga Mardiasmo. (2009). Perpajakan Edisi Revisi 2009. Yogyakarta:Andi 103 Nasucha, chaizi. (2004). Reformasi Publik Teori dan Praktik. Jakarta: PT Gramedia Widiasrana Indonesia Nurmanto, Safitri. (2005). Pengantar Perpajakan. Jakarta:Granit Priyanto, dwi. (2012). Cara Kilat Belajar Analisis Data dengan SPSS 20. Yogayakarta: C.V Andi Offset Rahayu , sri (2009). Pengaruh modernisasi sistem administrasi perpajakan terhadap kepatuhan wajib pajak (survey atas wajib pajak badan pada KPP Pratama Bandung “X”) Rahman, Abdul. (2009). Hubungan Sistem Administrasi Perpajakan Modern Dengan Kepatuhan Wajib Pajak. Jurnal Ilmu Administrasi. Volume VI nomor 1. Rahman, Abdul. (2010). Panduan Pelaksanaan Administrasi Perpajakan Untuk Karyawan, Pelaku Bisnis dan Perusahaan. Bandung: Nuansa Rapina, Jerry, Yenni (2011). Pengaruh penerapan sistem administrasi perpajakan modern terhadap kepatuhan wajib pajak (survey pada KPP Pratama Bandung Cibeunying) Republic Indonesia, Keputusan Menteri Keuangan Nomor 382/KMK/.03/2002 tanggal 27 Agustus 2002 Tentang Perubahan Atas Keputusan Mentri Keuangan Nomor 222/ KMK.03/2002 Tentang Kode Etik Pegawai Di Lingkungan Direktorat Jenderal Pajak Departemen Keuangan Republic Indonesia, Keputusan Menteri Keuangan Nomor 544/KMK.04/2000 Tentang Kriteria Wajib Pajak yang dapat diberikan Pengembalian Pendahuluan Kelebihan Pembayaran Pajak. Republic Indonesia, KeputusanMentri Keuangan Nomor 222/KMK.03/2002 tanggal 14 Mei 2002 Tentang Kode Etik Pegawai di Lingkungan Direktorat Jenderal Pajak Departemen Keuangan. Republic Indonesia, Undang-undang Nomor 23 A Republic Indonesia, Undang-Undang Nomor 7 Tahun 1983 tentang Pajak Penghasilan Republik Indonesia, Undang-Undang Nomor 28 Tahun 2007, tentang Perubahan Ketiga atas Undang-Undang Nomor 6 Tahun 1983 tentang Ketentuan Umum dan Tata Cara Perpajakan. 104 Republik Indonesia, Undang-Undang Nomor 36 Tahun 2008, tentang Perubahan Keempat atas Undang-Undang Nomor 7 Tahun 1983 tentang Pajak Penghasilan. Republik Indonesia,Keputusan Menteri Keuangan Nomor 443/ KMK.01/2001 Tentang Organisasi dan Tata Kerja Kantor Wilayah Direktorat Jenderal Pajak, Kantor Pelayanan Pajak, Kantor Pajak Bumi dan Bangunan, Kantor Pemeriksaan dan Penyidikan Pajak, Kantor Penyuluhan dan Pengamatan Potensi Perpajakan. Resmi,Siti. (2009). Perpajakan Teori dan Kasus. Jakarta: Salemba Empat. Sarjono, Haryadi dan Julianita, Winda. (2011). SPSS vs LISREL : Sebuah Pengantar,Aplikasi untuk Riset. Salemba empat, Jakarta. Sekaran, uma dan Roger Bougie, (2010). Research Methods for Business. United Kingdom:A. John Wiley and Sons Sofyan, Marcus Taufan (2005). Pengaruh penerapan sistem administrasi perpajakan modern terhadap kepatuhan wajib pajak pada kantor pelayanan pajak dilingkungan kantor wilayah Direktorat Jendral Pajak wajib pajak. Sugiyono. (2010). Metode Penelitian Bisnis. Alfabet:Bandung Supriyati. (2012). Dampak Motivasi dan Pengetahuan perpajakan terhadap Kepatuhan Wajib Pajak. Jurnal Infestasi Vol.8 No.1 Juni 2012. Tarjo dan Tjiptohadi Sawarjowono. (2005). Kepercayaan Wajib Pajak Terhadap Fiskus, Kesadaran Wajib Pajak Terhadap Pentingnya Membayar Pajak, Rekayasa Akuntansi dan Kepatuhan Wajib Pajak. Jurnal Manajemen, Akuntansi, dan Bisnis. Volume 3 nomor 2. Witono, Banu. (2008). Peranan Pengetahuan Pajak Pada Kepatuhan Wajib Pajak. Jurnal Akuntansi dan Keuagan Volume 7, Nomor 2. Yustianingsih, Sri (2011). Faktor-faktor yang Mempengaruhi Kepatuhan Wajib Pajak. Jurnal Widya Warta No.02 Tahun XXXV / Juli 2011 ISSN 08541981 http://elib.unikom.ac.id/files/disk1/380/jbptunikompp-gdl-berrynurdi-18969-7pengaruh-t.pdf http://www.anneahira.com/pengertian-administrasi-20907.htm (Monday, 29 april 2013, 10.20 am) 105 106 Appendix 1: Research of Questionnaire QUESTIONNAIRE The Influence of Modernization of Tax Administration System to Taxpayer Compliance By: Evie Trie Hardiani NIM: 109082100022 DEPARTMENT OF ACCOUNTING INTERNATIONAL CLASS PROGRAM FACULTY OF ECONOMIC AND BUSINESS SYARIF HIDAYATULLAH STATE ISLAMIC UNIVERSITY JAKARTA 1433 H/2012 106 About: Request of Admission filling of Questionaire November 2012 Jakarta, Dear, Sir/Madam Regarding to the accomplishment of final assignment as bachelor student (S1) in State Islamic University Syarif Hidayatullah Jakarta, I: Name : Evie Trie Hardiani Student ID : 109082100022 Faculty/Major/Semester : Economic and Business/Accounting/VII Aim to do scientific research to make bachelor thesis entitled: “The Influence of Modernization Taxation Administration System Implementation on Taxpayer Compliance on Tax Services Office Pratama, Jakarta, Senen.” Thus, I hope your willingness, sir/madam, to be the respondent by filling the letter of questionnaire completely and forgive me for bothering your working time, sir/madam. Obtained data will be only used for the research purpose and not for the performance assessment purpose, so that the confidentiality will be kept according to the research’s ethic. Sir/Madam is requested to read each statement carefully and answer all questions completely, because if there is one number is not filled, so the questionnaire is considered invalid. There is no wrong or right answer in your answer, please choose the answer that is most suitable with your opinion. If there is one of you needs the result of this research, so sir/madam can contact me (phone and e-mail attached below). Thank you for your participation to fill and answer all questions of my research. Supervisor (Prof. Dr. Azzam Jasin ) Kind regards, Researcher (Evie Trie Hardiani) 107 No. : ……(filled by researcher) IDENTITY OF RESPONDENT Name : Gender : Male Female Age : < 25 years old 26 – 35 years old 36 – 40 years old >40 years old Position : Director Employee Manager Others…. Taxation officer Working experience : < 2 years 4 -5 years 2 – 3 years >5 years 3 – 4 years Latest Education : Senior High School Diploma Bachelor Others……… 108 Instruction 1. Read carefully each statement by using available answer that is most suitable for you. 2. You only need to give checkmark (√) on the answer you think is most 3. If you want to correct your answer, please encircle (O) the wrong checkmark. 4. Please recheck your all answers and make sure that there is no missed statement. Level of Answers’ Measurement No Type of Answer Value 1 SA = Strongly Agree 5 2 A = Agree 4 3 N=Neutral 3 4 DA = Disagree 2 5 SDA = Strongly Disagree 1 A. System of Taxation’s Administration 1. Variable X1: Organizational Structure Explained by Chaizi Nasucha that organizational structure is an element relating to the determined role and inter-role relationship, allocation of activity to separated sub-unit, distribution of authority between administration position, and communication network. No Statement 1 An easy procedure on service’s function and receipt’s function. A clear segregation of function. With the existence of Account Representative, it will help the taxpayer to get the answer over taxpayer’s question. With the existence of Taxpayer’s Account, it will ease the supervision over right and obligation of taxation for every taxpayer. 2 3 4 SA A N DA 109 SDA 2. Variable X2: Organizational Procedure Organizational procedure relates to the process of communication, decision-making, achievement selection, socialization and career. No Statement 1 SA A N DA SDA Procedure of services in filling and submitting Annual Tax Form (SPT) of income tax is more effective. Service and receipt through computerization program, such as ereporting and e-SPT on line that have been in progress. Form relating to the admission filling and delivery of SPT and SSP of income tax is easy to get/ to obtain. Intensity of service’s and receipt’s volume have run as the applicable regulation. Facilities given by KPP have been proper for taxpayer. 2 3 4 5 KPP’s services have been accordance with applicable regulation. Service and supervision of taxation administration through one door service (Account Representative) can decrease contiguity between taxpayer and tax officer that can cause negative impact There is simplification of administration’s procedure, the increase of time standard, service quality and tax receipt. There is support from modern information technology in giving tax’s services, supervision, receipt and levy. 6 7 8 9 3. Variable X3: Organizational Strategy Organizational strategy is considered as a tactic, view of attitude and action aimed to use all conditions, factors, opportunities, and resources so the goals of organization can be achieved well and successfully. No 1 2 3 Statement SA A N DA There is campaign of tax care and awareness so it can increase the understanding about right and obligation of taxation. With the existence of online tax payment so it can decrease Administrative cost and Compliance cost. Socialization and illumination cost of taxation to increase the 110 SDA 4 5 6 understanding about right and obligation of taxation are affordable for taxpayer. Intensification of tax receipt by doing the tax levy through the seizure of taxpayer account, prevention, taking hostage. Increase the investigation’s activity for criminal act in the field of taxation to give deterrent effect. Hold training about method and technique of good services in order to know how to give the right service to taxpayer. 4. Variable X4: Organizational Culture No 1 Organizational culture is defined as a system of belief’s spreading and values developing in the organization and directs the behavior of its members Statement SA A N DA 2 Duty and responsibility of taxpayer has been done based on organization’s procedure. Tax officer understand tax regulation and competent on his duty. 3 Disciplined and responsible tax officer on his duty. 4 Competent tax officer. 5 The implementation of which is characterized with the existence of good organizational culture. Qualified and professional human resources 6 B. Taxpayer compliance According to Desi Handayani, compliance of taxpayer can be defined as a situation where the taxpayer fulfill all taxation obligations and receive his/her taxation rights. No Statement 1 Always submit filled SPT punctually. 2 Always pay and calculate taxable income tax correctly and punctually. Always pay the underpayment of income tax before doing investigation. 3 SA A N DA 111 SDA SDA 4 5 The implementation of e-system as the new concept issued by Directorate General of Tax aimed to increase transparency in order it can encourage the taxpayer to fulfill his/her obligation. Fill SSP/SPT correctly according to amount of taxable tax. 6 No deferred tax for all types of tax. THANK YOU FOR THE PARTICIPATION SIR/MADAM 112 Appendix 2: The Result of Questionnaire Organizatonal Stucture(ST) RATARATA NO ST1 ST2 ST3 ST4 TOTAL 1 4 5 5 5 19 1.27 2 5 4 4 4 17 1.13 3 3 4 4 4 15 1.00 4 4 3 3 3 13 0.87 5 4 4 4 4 16 1.07 6 5 5 5 5 20 1.33 7 4 4 4 4 16 1.07 8 3 3 3 3 12 0.80 9 5 5 4 4 18 1.20 10 4 4 5 5 18 1.20 11 4 3 3 4 14 0.93 12 4 5 3 3 15 1.00 13 5 4 4 4 17 1.13 14 4 5 4 5 18 1.20 15 3 4 3 4 14 0.93 16 5 4 5 4 18 1.20 17 3 3 4 3 13 0.87 18 4 5 5 4 18 1.20 19 5 5 4 5 19 1.27 20 3 3 3 3 12 0.80 21 4 3 3 4 14 0.93 22 4 4 4 4 16 1.07 23 5 5 5 5 20 1.33 24 5 5 4 4 18 1.20 25 3 3 3 4 13 0.87 26 3 3 3 3 12 0.80 27 4 5 4 5 18 1.20 28 3 4 3 4 14 0.93 29 5 4 5 4 18 1.20 30 4 3 4 3 14 0.93 113 RATARATA NO ST1 ST2 ST3 ST4 TOTAL 31 4 4 4 4 16 1.07 32 4 3 4 5 16 1.07 33 4 4 4 3 15 1.00 34 4 4 4 4 16 1.07 35 4 4 4 5 17 1.13 36 4 4 4 4 16 1.07 37 5 5 4 3 17 1.13 38 4 4 5 4 17 1.13 39 4 4 4 5 17 1.13 40 3 4 4 4 15 1.00 41 4 4 4 3 15 1.00 42 5 4 4 4 17 1.13 43 3 4 4 5 16 1.07 44 5 3 5 4 17 1.13 45 4 4 4 4 16 1.07 46 4 4 4 5 17 1.13 47 4 4 3 3 14 0.93 48 4 4 3 5 16 1.07 49 4 5 5 5 19 1.27 50 5 4 4 3 16 1.07 51 3 4 4 4 15 1.00 52 4 3 3 4 14 0.93 53 5 5 5 5 20 1.33 54 4 4 4 4 16 1.07 55 3 3 3 4 13 0.87 56 4 4 4 3 15 1.00 57 4 5 5 4 18 1.20 58 5 4 4 3 16 1.07 59 3 3 4 5 15 1.00 60 4 4 3 3 14 0.93 61 5 5 5 4 19 1.27 62 4 4 5 4 17 1.13 63 4 3 4 4 15 1.00 114 RATARATA NO ST1 ST2 ST3 ST4 TOTAL 64 4 5 4 5 18 1.20 65 3 3 4 4 14 0.93 66 4 4 5 4 17 1.13 67 5 5 4 5 19 1.27 68 3 3 3 4 13 0.87 69 4 5 5 4 18 1.20 70 3 4 4 3 14 0.93 71 4 4 3 4 15 1.00 72 3 3 4 3 13 0.87 73 3 3 4 3 13 0.87 74 4 4 3 4 15 1.00 75 4 3 4 4 15 1.00 76 4 4 4 4 16 1.07 77 4 3 3 4 14 0.93 78 5 5 4 5 19 1.27 79 3 4 3 3 13 0.87 80 4 4 4 4 16 1.07 81 5 5 5 5 20 1.33 82 4 5 4 4 17 1.13 83 4 3 4 4 15 1.00 84 5 4 5 5 19 1.27 85 3 4 3 3 13 0.87 86 5 5 5 5 20 1.33 115 Organizational Procedure (PO) NO P1 P2 P3 P4 P5 P6 P7 P8 P9 TOTAL 1 5 5 4 5 5 5 4 5 5 43 2 4 4 5 4 4 4 5 4 4 38 3 4 4 3 4 4 4 3 4 4 34 4 3 3 4 3 3 3 4 3 3 29 5 5 4 4 4 5 5 4 5 5 41 6 4 5 5 5 4 4 5 4 4 40 7 3 4 4 4 3 3 4 3 3 31 8 4 3 3 3 4 4 3 4 4 32 9 5 4 5 5 5 5 4 5 5 43 10 4 5 4 4 4 4 5 4 4 38 11 3 4 4 3 4 3 3 3 4 31 12 5 3 4 5 3 4 4 4 3 35 13 4 4 5 4 4 4 4 5 5 39 14 4 5 4 5 4 5 4 4 5 40 15 4 4 3 4 3 4 4 3 4 33 16 5 4 5 4 5 4 5 5 4 41 17 3 3 3 3 3 4 4 3 4 30 18 4 4 4 5 4 5 5 4 5 40 19 5 5 5 5 4 4 5 5 4 42 20 3 3 3 3 3 3 3 3 3 27 21 4 4 4 3 4 3 3 4 3 32 22 4 4 4 4 4 4 4 4 4 36 23 5 5 5 5 5 5 5 5 5 45 24 5 4 5 5 4 4 4 5 5 41 25 3 4 3 3 4 4 3 4 4 32 26 3 3 3 3 5 5 3 5 3 27 4 5 4 5 4 5 4 4 5 28 3 4 3 4 3 4 3 3 4 Ratarata 3.58 3.17 2.83 2.42 3.42 3.33 2.58 2.67 3.58 3.17 2.58 2.92 3.25 3.33 2.75 3.42 2.50 3.33 3.50 2.25 2.67 3.00 3.75 3.42 2.67 33 2.75 40 3.33 31 2.58 116 NO P1 P2 P3 P4 P5 P6 P7 P8 P9 29 5 4 5 4 5 4 5 5 4 30 4 3 4 3 4 4 3 4 3 31 5 4 4 4 4 4 4 4 3 32 4 3 4 4 5 5 4 5 5 33 4 4 4 3 5 5 4 5 5 34 3 5 3 4 4 4 4 5 5 35 4 4 4 3 4 4 4 3 4 36 5 5 3 4 5 5 4 4 4 37 4 5 4 4 4 4 4 3 4 38 4 5 5 4 5 5 5 4 3 39 4 4 3 4 4 4 5 4 4 40 5 4 4 4 5 5 5 4 4 41 4 4 4 3 4 4 4 5 4 42 5 4 3 4 4 4 4 5 5 43 5 4 4 5 5 5 4 5 5 44 4 4 4 4 4 5 4 5 5 45 3 4 4 4 3 4 4 4 4 46 5 4 4 3 4 5 5 4 4 47 4 4 5 4 3 3 4 4 4 48 5 4 4 3 4 5 4 5 5 49 4 4 4 4 5 5 4 4 4 50 4 5 5 4 3 3 5 3 3 51 4 3 3 4 4 3 4 5 5 52 5 4 4 4 4 4 5 5 5 53 5 5 5 5 5 5 5 5 5 54 5 4 4 4 5 5 5 4 4 55 4 3 3 4 4 4 4 4 4 56 4 4 4 4 4 4 4 4 4 TOTAL Ratarata 41 3.42 32 2.67 36 3.00 39 3.25 39 3.25 37 3.08 34 2.83 39 3.25 36 3.00 40 3.33 36 3.00 40 3.33 36 3.00 38 3.17 42 3.50 39 3.25 34 2.83 38 3.17 35 2.92 39 3.25 38 3.17 35 2.92 35 2.92 40 3.33 45 3.75 40 3.33 34 2.83 36 3.00 117 NO P1 P2 P3 P4 P5 P6 P7 P8 P9 57 4 4 4 3 4 4 4 4 4 58 4 5 5 4 5 5 4 4 4 59 4 4 4 4 4 4 4 4 5 60 5 3 3 4 5 5 5 4 4 61 4 4 4 4 4 3 3 4 4 62 4 5 4 3 4 4 5 5 5 63 4 3 4 4 4 4 4 4 4 64 5 5 4 4 5 5 4 4 5 65 4 4 3 4 4 3 4 4 4 66 4 5 4 4 4 4 4 4 4 67 5 4 5 4 4 5 4 4 5 68 4 3 3 4 4 3 4 4 4 69 4 4 4 3 5 4 5 5 4 70 4 3 4 5 4 4 4 4 5 71 4 4 4 3 4 3 3 4 4 72 4 4 4 5 4 3 4 4 5 73 5 4 4 4 4 4 4 4 5 74 4 4 4 4 4 4 4 3 5 75 4 4 4 5 5 5 3 4 3 76 4 4 4 5 3 3 5 4 4 77 4 3 4 4 4 5 4 4 4 78 4 5 4 4 5 4 5 5 4 79 5 4 4 4 4 4 4 4 4 80 4 5 5 5 5 5 4 4 5 81 4 5 5 4 4 3 4 4 5 82 5 4 4 4 4 4 4 4 4 83 5 4 3 5 5 5 4 4 4 84 4 5 5 5 5 5 4 4 5 85 4 4 4 5 3 3 3 4 4 86 4 4 5 5 4 4 4 5 4 TOTAL Ratarata 35 2.92 40 3.33 37 3.08 38 3.17 34 2.83 39 3.25 35 2.92 41 3.42 34 2.83 37 3.08 40 3.33 33 2.75 38 3.17 37 3.08 33 2.75 37 3.08 38 3.17 36 3.00 37 3.08 36 3.00 36 3.00 40 3.33 37 3.08 42 3.50 38 3.17 37 3.08 39 3.25 42 3.50 34 2.83 39 3.25 118 Organizational Strategy (SO) NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 SO1 4 5 3 4 4 5 4 3 4 5 3 4 5 4 3 5 3 4 5 3 3 4 5 5 3 4 4 3 5 4 4 4 4 SO2 4 5 3 4 4 5 4 3 4 5 3 4 5 5 4 4 4 5 4 3 4 4 5 4 3 4 5 4 4 3 4 5 5 SO3 4 5 3 4 4 5 4 3 4 5 3 4 5 5 3 5 4 5 4 3 3 4 5 4 3 4 4 3 5 4 4 3 4 SO4 5 4 4 3 4 5 4 3 5 4 4 3 4 4 3 5 3 4 5 3 4 4 5 4 3 4 4 3 5 4 3 4 4 SO5 4 5 3 4 5 4 3 4 3 4 4 3 4 5 4 4 4 5 4 3 3 4 5 4 3 5 5 4 4 3 4 4 4 SO6 4 5 3 4 5 4 3 4 4 5 3 4 4 5 3 5 4 5 4 3 3 4 5 4 4 5 4 3 5 4 4 4 4 SO7 4 5 3 4 5 4 3 4 4 5 3 4 5 4 4 4 3 4 5 3 4 4 5 4 4 5 5 4 4 3 4 4 4 TOTAL 29 34 22 27 31 32 25 24 28 33 23 26 32 32 24 32 25 32 31 21 24 28 35 29 23 31 31 24 32 25 27 28 29 Rata-rata 4.14 4.86 3.14 3.86 4.43 4.57 3.57 3.43 4.00 4.71 3.29 3.71 4.57 4.57 3.43 4.57 3.57 4.57 4.43 3.00 3.43 4.00 5.00 4.14 3.29 4.43 4.43 3.43 4.57 3.57 3.86 4.00 4.14 119 NO 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 SO1 5 4 4 5 4 4 4 4 5 4 4 5 4 4 4 3 4 4 3 4 5 4 4 4 5 4 4 4 5 4 4 4 5 4 5 3 SO2 5 4 4 4 4 4 4 4 5 4 4 5 4 5 4 4 5 4 4 4 5 4 5 4 5 4 3 4 3 4 3 4 4 5 4 4 SO3 5 3 5 4 4 4 4 4 5 4 4 5 4 5 4 4 5 4 4 5 4 4 4 5 4 5 5 4 3 4 4 4 4 4 4 4 SO4 4 4 3 4 4 4 4 5 5 4 5 5 4 5 4 5 4 5 4 5 4 5 5 5 4 5 5 5 4 4 5 4 4 4 5 4 SO5 4 4 5 4 4 3 3 5 4 4 5 5 4 3 4 5 4 4 5 5 5 4 4 4 5 4 5 4 5 4 4 4 4 5 4 4 SO6 4 3 4 4 4 3 4 4 4 4 4 4 4 3 4 4 4 4 4 4 4 5 4 5 5 5 4 4 4 4 4 4 4 4 3 4 SO7 4 4 4 4 4 4 4 3 4 5 4 4 4 4 4 4 4 4 4 4 4 5 4 5 5 5 4 4 5 4 3 3 3 4 4 4 TOTAL 31 26 29 29 28 26 27 29 32 29 30 33 28 29 28 29 30 29 28 31 31 31 30 32 33 32 30 29 29 28 27 27 28 30 29 27 Rata-rata 4.43 3.71 4.14 4.14 4.00 3.71 3.86 4.14 4.57 4.14 4.29 4.71 4.00 4.14 4.00 4.14 4.29 4.14 4.00 4.43 4.43 4.43 4.29 4.57 4.71 4.57 4.29 4.14 4.14 4.00 3.86 3.86 4.00 4.29 4.14 3.86 120 NO 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 SO1 4 5 5 4 4 4 4 4 4 4 4 5 5 5 5 4 5 SO2 4 5 5 4 4 4 4 4 5 4 3 5 5 5 4 4 4 SO3 5 3 5 3 4 4 4 4 5 4 4 4 5 5 5 4 4 SO4 5 4 4 4 4 4 5 5 5 4 4 5 5 5 5 4 5 SO5 5 4 4 4 4 5 4 5 4 4 4 4 4 5 4 4 4 SO6 5 5 4 4 4 4 5 4 4 3 4 4 4 4 4 4 4 SO7 5 5 4 4 4 4 5 4 4 5 4 4 4 4 4 4 4 TOTAL 33 31 31 27 28 29 31 30 31 28 27 31 32 33 31 28 30 Rata-rata 4.71 4.43 4.43 3.86 4.00 4.14 4.43 4.29 4.43 4.00 3.86 4.43 4.57 4.71 4.43 4.00 4.29 121 Organizational Culture(BO) NO BO1 BO2 BO3 4 4 4 1 5 4 5 2 3 4 3 3 4 5 4 4 5 4 5 5 4 4 4 6 3 5 3 7 4 3 4 8 4 5 5 9 5 4 4 10 4 4 4 11 3 4 4 12 4 5 5 13 5 4 5 14 3 4 3 15 5 5 4 16 4 3 4 17 5 5 5 18 4 5 4 19 3 3 3 20 3 3 4 21 4 4 4 22 5 5 5 23 5 5 4 24 4 3 4 25 4 4 4 26 4 4 5 27 3 3 4 28 5 5 4 29 4 4 3 30 4 5 4 31 4 4 5 32 4 4 3 33 4 3 4 34 BO4 4 5 3 4 5 4 3 4 4 5 3 4 4 5 3 5 4 5 4 3 3 4 5 4 4 5 4 3 5 4 4 4 4 4 BO5 5 4 4 3 5 4 3 4 5 4 3 5 5 5 4 4 4 5 4 3 3 4 5 5 3 3 5 4 4 3 4 5 3 4 BO6 4 5 3 4 5 4 3 4 4 5 3 5 5 4 3 5 4 5 4 3 3 4 5 4 3 3 4 3 5 4 5 4 4 3 BO7 TOTAL 4 29 5 33 3 23 4 28 5 34 4 28 3 23 4 27 4 31 5 32 4 25 3 28 5 33 5 33 3 23 4 32 3 26 4 34 5 30 3 21 4 23 4 28 5 35 4 31 4 25 5 28 5 31 4 24 4 32 4 26 5 31 4 30 4 26 3 25 Rata-rata 4.14 3.67 2.56 3.11 3.78 3.11 2.56 3.00 3.44 3.56 2.78 3.11 3.67 3.67 2.56 3.56 2.89 3.78 3.33 2.33 2.56 3.11 3.89 3.44 2.78 3.11 3.44 2.67 3.56 2.89 3.44 3.33 2.89 2.78 122 NO BO1 BO2 BO3 4 4 4 35 5 5 5 36 4 4 4 37 3 3 3 38 4 4 4 39 3 5 5 40 3 4 5 41 3 5 4 42 3 5 4 43 3 4 5 44 4 3 5 45 4 5 4 46 4 4 3 47 5 5 4 48 3 4 5 49 3 3 4 50 4 3 4 51 3 4 5 52 5 5 5 53 4 5 5 54 3 4 4 55 4 5 4 56 3 4 4 57 4 3 5 58 5 5 4 59 4 3 5 60 5 4 4 61 4 3 5 62 3 4 4 63 4 5 4 64 4 3 4 65 3 5 4 66 4 4 5 67 4 4 4 68 3 4 4 69 4 4 5 70 BO4 3 4 4 4 3 4 4 4 4 4 4 4 3 4 4 4 4 4 4 4 5 4 5 5 5 4 4 4 4 4 4 4 4 3 4 5 BO5 5 4 3 4 4 5 4 4 5 4 3 5 4 4 4 3 4 4 5 5 3 4 4 3 5 3 4 5 3 4 5 4 3 4 4 5 BO6 5 4 3 4 4 5 3 4 4 5 4 4 3 4 5 3 4 4 5 5 3 4 5 4 4 3 5 4 4 3 5 4 3 4 4 5 BO7 TOTAL 5 30 4 31 3 25 4 25 5 28 4 31 4 27 4 28 5 30 4 29 4 27 5 31 3 24 5 31 5 30 3 23 3 26 4 28 5 34 5 33 3 25 4 29 4 29 3 27 5 33 4 26 5 31 4 29 4 26 3 27 5 30 4 28 3 26 4 27 5 28 4 32 Rata-rata 3.33 3.44 2.78 2.78 3.11 3.44 3.00 3.11 3.33 3.22 3.00 3.44 2.67 3.44 3.33 2.56 2.89 3.11 3.78 3.67 2.78 3.22 3.22 3.00 3.67 2.89 3.44 3.22 2.89 3.00 3.33 3.11 2.89 3.00 3.11 3.56 123 NO BO1 BO2 BO3 3 4 4 71 4 4 4 72 4 4 4 73 4 4 4 74 4 4 5 75 3 3 4 76 4 4 5 77 5 5 4 78 4 5 4 79 5 3 4 80 5 3 4 81 4 4 4 82 5 5 5 83 4 5 4 84 3 3 4 85 3 4 3 86 BO4 5 4 4 4 4 5 4 4 3 4 4 4 5 4 4 4 BO5 4 4 5 4 3 5 4 4 4 3 4 4 5 5 3 4 BO6 3 4 4 5 4 4 3 4 5 3 4 4 5 5 3 4 BO7 TOTAL 4 27 4 28 5 30 4 29 4 28 5 29 3 27 5 31 5 30 3 25 3 27 4 28 5 35 5 32 3 23 4 26 Rata-rata 3.00 3.11 3.33 3.22 3.11 3.22 3.00 3.44 3.33 2.78 3.00 3.11 3.89 3.56 2.56 2.89 Taxpayer Compliance(KWP) NO KWP1 KWP2 KWP3 KWP4 KWP5 KWP6 Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 4 4 5 5 4 5 27 Rat - Rata 4.50 5 5 4 4 5 4 27 4.50 3 3 4 4 3 4 21 3.50 4 4 3 3 4 3 21 3.50 4 4 4 5 5 5 27 4.50 5 5 5 4 4 4 27 4.50 4 4 4 3 3 3 21 3.50 3 3 3 4 4 4 21 3.50 4 5 5 5 4 5 28 4.67 5 4 4 4 5 4 26 4.33 3 4 3 3 3 3 19 3.17 4 4 5 5 4 5 27 4.50 5 5 4 4 5 4 27 4.50 4 4 5 4 4 4 25 4.17 124 NO KWP1 KWP2 KWP3 KWP4 KWP5 KWP6 Total 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 3 3 4 4 4 4 22 Rat - Rata 3.67 5 5 4 5 4 5 28 4.67 3 3 3 3 3 3 18 3.00 4 4 5 4 4 4 25 4.17 5 5 5 5 5 5 30 5.00 3 3 3 3 3 3 18 3.00 3 4 3 4 4 4 22 3.67 4 4 4 4 4 4 24 4.00 5 5 5 5 5 5 30 5.00 5 5 5 5 4 5 29 4.83 3 3 3 3 4 3 19 3.17 4 3 3 3 5 3 21 3.50 4 4 5 4 5 4 26 4.33 3 3 4 3 4 3 20 3.33 5 5 4 5 4 5 28 4.67 4 4 3 4 3 4 22 3.67 4 4 4 5 4 4 25 4.17 5 4 3 4 4 4 24 4.00 3 4 4 4 4 4 23 3.83 4 4 4 3 4 3 22 3.67 5 4 4 4 4 4 25 4.17 4 4 4 5 4 4 25 4.17 3 5 5 4 4 3 24 4.00 4 4 4 4 4 4 24 4.00 5 4 4 4 4 3 24 4.00 4 3 4 5 4 3 23 3.83 3 4 4 4 3 4 22 3.67 4 5 4 5 4 4 26 4.33 5 3 4 5 5 4 26 4.33 4 5 3 4 4 4 24 4.00 4 4 4 3 4 5 24 4.00 5 4 4 5 4 4 26 4.33 3 4 4 4 4 4 23 3.83 5 4 4 5 4 4 26 4.33 5 4 5 4 4 4 26 4.33 4 5 4 4 4 5 26 4.33 4 3 4 4 4 4 23 3.83 125 NO KWP1 KWP2 KWP3 KWP4 KWP5 KWP6 Total 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 5 4 3 5 4 3 24 Rat - Rata 4.00 5 5 5 4 5 3 27 4.50 5 4 4 5 4 4 26 4.33 4 3 3 4 4 3 21 3.50 4 4 4 4 4 4 24 4.00 4 4 5 5 3 4 25 4.17 4 5 4 4 4 4 25 4.17 4 3 3 5 4 4 23 3.83 5 4 4 5 5 3 26 4.33 4 5 5 5 4 5 28 4.67 4 4 4 5 4 4 25 4.17 4 4 3 4 4 4 23 3.83 5 4 5 4 5 5 28 4.67 4 3 3 4 4 4 22 3.67 4 4 4 3 4 4 23 3.83 5 5 5 4 5 4 28 4.67 4 3 3 5 4 5 24 4.00 4 4 5 4 4 4 25 4.17 4 3 4 4 4 5 24 4.00 4 5 5 3 4 4 25 4.17 4 5 5 4 4 5 27 4.50 5 4 4 4 5 5 27 4.50 4 4 4 4 4 4 24 4.00 4 4 4 4 4 3 23 3.83 4 4 4 5 4 5 26 4.33 4 4 4 4 4 3 23 3.83 4 4 5 5 4 4 26 4.33 5 4 4 5 5 4 27 4.50 4 4 3 3 4 3 21 3.50 4 5 5 3 4 4 25 4.17 5 4 5 4 5 4 27 4.50 5 4 5 5 5 5 29 4.83 4 5 4 4 4 5 26 4.33 4 3 4 3 4 4 22 3.67 4 5 4 3 4 3 23 3.83 126 Appendix 3: Result of Validity and Reliability Test SPSS 20 Oganizational Structure (X1) Case Processing Summary N % Valid 86 100.0 a Cases Excluded 0 .0 Total 86 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .755 4 Item Statistics Mean ST1 4.01 ST2 4.00 ST3 3.98 ST4 4.02 Item-Total Statistics Scale Mean Item Deleted ST1 ST2 ST3 ST4 12.00 12.01 12.03 11.99 Std. Deviation .694 .719 .686 .703 N 86 86 86 86 if Scale Variance if Corrected Item- Cronbach's Item Deleted Total Correlation Alpha if Item Deleted 2.753 .562 .693 2.623 .596 .673 2.716 .594 .675 2.929 .460 .747 Scale Statistics Mean Variance 16.01 4.529 Std. Deviation 2.128 N of Items 4 127 Organizational Procedures (X2) Case Processing Summary N % Valid 86 100.0 a Cases Excluded 0 .0 Total 86 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .793 9 Item Statistics Mean PO1 4.19 PO2 4.07 PO3 4.01 PO4 4.03 PO5 4.15 PO6 4.15 PO7 4.09 PO8 4.16 PO9 4.22 Item-Total Statistics Scale Mean Item Deleted PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PO9 32.90 33.01 33.07 33.05 32.93 32.93 32.99 32.92 32.86 Std. Deviation .623 .647 .660 .676 .642 .712 .625 .630 .658 N 86 86 86 86 86 86 86 86 86 if Scale Variance if Corrected Item- Cronbach's Item Deleted Total Correlation Alpha if Item Deleted 10.307 .574 .760 10.788 .420 .780 10.748 .418 .781 10.657 .425 .780 10.254 .566 .761 10.160 .513 .768 10.765 .448 .777 10.523 .508 .769 10.592 .460 .775 Scale Statistics Mean Variance 37.08 12.993 Std. Deviation 3.605 N of Items 9 128 Organizational Strategy (X3) Case Processing Summary N % Valid 86 100.0 a Cases Excluded 0 .0 Total 86 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .786 7 Item Statistics Mean SO1 4.15 SO2 4.17 SO3 4.14 SO4 4.26 SO5 4.14 SO6 4.05 SO7 4.09 Item-Total Statistics Scale Mean Item Deleted SO1 SO2 SO3 SO4 SO5 SO6 SO7 24.85 24.83 24.86 24.74 24.86 24.95 24.91 Std. Deviation .642 .617 .654 .654 .617 .572 .566 N 86 86 86 86 86 86 86 if Scale Variance if Corrected Item- Cronbach's Item Deleted Total Correlation Alpha if Item Deleted 5.965 .585 .744 6.240 .516 .759 5.816 .624 .736 6.404 .417 .779 6.498 .424 .776 6.233 .578 .748 6.579 .452 .770 Scale Statistics Mean Variance 29.00 8.212 Std. Deviation 2.866 N of Items 7 129 Organizational Culture (X4) Case Processing Summary N % Valid 86 100.0 a Cases Excluded 0 .0 Total 86 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .779 7 Item Statistics Mean BO1 3.92 BO2 4.09 BO3 4.20 BO4 4.06 BO5 4.06 BO6 4.02 BO7 4.10 Item-Total Statistics Scale Mean Item Deleted BO1 BO2 BO3 BO4 BO5 BO6 BO7 24.53 24.36 24.26 24.40 24.40 24.43 24.35 Std. Deviation .707 .730 .610 .581 .725 .735 .736 N 86 86 86 86 86 86 86 if Scale Variance if Corrected Item- Cronbach's Item Deleted Total Correlation Alpha if Item Deleted 7.852 .438 .764 7.833 .421 .768 8.263 .414 .768 8.383 .406 .769 7.324 .570 .737 6.930 .675 .714 7.195 .595 .732 Scale Statistics Mean Variance 28.45 10.086 Std. Deviation 3.176 N of Items 7 130 Taxpayer Compliance (Y) Case Processing Summary N % Valid 86 100.0 a Cases Excluded 0 .0 Total 86 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .749 6 Item Statistics Mean KWP1 4.15 KWP2 4.06 KWP3 4.07 KWP4 4.14 KWP5 4.10 KWP6 4.00 Item-Total Statistics Scale Mean Item Deleted KWP1 KWP2 KWP3 KWP4 KWP5 KWP6 20.37 20.47 20.45 20.38 20.42 20.52 Std. Deviation .660 .675 .699 .706 .532 .686 N 86 86 86 86 86 86 if Scale Variance if Corrected Item- Cronbach's Item Deleted Total Correlation Alpha if Item Deleted 4.919 .564 .692 5.169 .450 .724 4.910 .518 .704 5.063 .455 .723 5.587 .451 .725 5.005 .498 .710 Scale Statistics Mean Variance 24.52 7.005 Std. Deviation 2.647 N of Items 6 131 Appendix 4: Result of Multiple Regression Descriptive Statistics N ST 86 PO 86 SO 86 BO 86 KWP 86 Valid N (listwise) 86 Minimum 12 27 21 21 18 Maximum 20 45 35 35 30 Mean 16.01 37.08 29.00 28.45 24.52 Std. Deviation 2.128 3.605 2.866 3.176 2.647 Correlations KWP 1.000 .632 .729 .619 .653 . .000 .000 .000 .000 86 86 86 86 86 KWP ST PO SO BO KWP ST PO SO BO KWP ST PO SO BO Pearson Correlation Sig. (1-tailed) N ST .632 1.000 .682 .469 .438 .000 . .000 .000 .000 86 86 86 86 86 PO .729 .682 1.000 .576 .620 .000 .000 . .000 .000 86 86 86 86 86 SO .619 .469 .576 1.000 .593 .000 .000 .000 . .000 86 86 86 86 86 BO .653 .438 .620 .593 1.000 .000 .000 .000 .000 . 86 86 86 86 86 b Model Summary Model R R Square Adjusted R Square a 1 .805 .648 .631 a. Predictors: (Constant), BO, ST, SO, PO b. Dependent Variable: KWP Std. Error of Durbin-Watson the Estimate 1.609 2.031 a ANOVA Model 1 Regression Sum of Squares 385.865 Df 4 Mean Square 96.466 Residual 209.588 81 2.588 Total 595.453 85 F Sig. b 37.282 .000 a. Dependent Variable: KWP b. Predictors: (Constant), BO, ST, SO, PO 132 Coefficients Model a (Constant) Unstandardized Coefficients B Std. Error .620 ST .271 PO .234 SO .170 BO .209 a. Dependent Variable: KWP 1 Standardized Coefficients Beta 2.030 .113 .078 .081 .075 .218 .319 .184 .251 t Sig. .305 .761 2.398 3.020 2.105 2.775 .019 .003 .038 .007 Collinearity Statistics Tolerance VIF .526 .389 .568 .532 1.902 2.568 1.760 1.879 133 134 KEMENTERIAN KEUANGAN REPUBLIK INDONESIA DI REKTORAT JENDERAL PAJAK KANTOR WILAYAH DJP JAKARTA PUSAT JAI.AN JENOEML GATOT SUBROTO I(AV. 40 .42, JAI(ARTA 12190 TELEPON (021) 5250208,5262880; FAKSIMILE (021) 5736066. SITUS www.pajak.go.id LAYANAN |NFORMASI DAN KELUHAN KRTNG PAJAK (021) 500200 Nomor Sifat Lampiran Hal Yth. - tl'{ S Biasa l, A/VPJ.06/8D.05/2013 Februari 2013 Pemberian lzin Riset Universitas lslam Negeri Syarif Hidayatullah Jakarta Jalan lr. H. Juanda No. 95, Ciputat 15412 Sehubungan dengan surat Saudara nomor: Permohonan lzin Riset atas: Nama NIM / NPM : : UnO1 /F8/KP.01.212012 tanggal Desember 2012 hal dengan ini Kantor Wilayah DJP Jakarta Pusat memberikan izin kepada mahasiswa yang bersangkutan untuk magang/penyebaran kuesioner/penelitan dan/atau riset pada KPP Pratama Jakarta Senen, sepanjang bahan-bahan keterangan/data yang didapat hanya digunakan untuk keperluan akademis, tidak untuk dipublikasikan, dan tidak menyangkut rahasia jabatan/Negara sebagaimana Undang-undang Nomor 6 Tahun 1983 tentang Ketentuan Umum dan Tata Cara Perpajakan sebagaimana telah diubah terakhir dengan Undang-undang Nomor 16 Tahun 2009. Selanjutnya setelah selesai melaksanakan riset/penelitiannya, agar kepada mahasiswa yang bersangkutan diminta untuk memberikan satu soft-copy hasil riset/penelitian tersebut sebagai bahan masukan bagi Direktorat Jenderal Pajak, Soft-copy dimaksud dapat dikirim melalui email ke alamat sebagai berikut: perpustakaan@paiakJp. id. Demikian, agar dapat digunakan sebagaimana mestinya. a.n. Kepala Kanwil DJP Pjs. Kepala Bidang P2 Humas W! Binsri g NrP 1 96b021 51 9891 21001 Tembusan: . Kepala Kanwil DJP Jakarta Pusat I I Evie Trie Hardiani 109082100022 diatur dalam ketentuan Pasal 34 --.-_l ,/A. KEMENTERIAN KEUANGAN REPUBLIK INDONESIA DIREKTORAT JENDERAL PAJAK KANTOR WILAYAH DJP JAKARTA PUSAT KANTOR PELAYANAN PAJAK PRATAMA JAKARTA SENEN ,.ffii, 'IWffiWi ,'Wi Telepon Jl. Kramat Raya No. 136 Jakarta- Pusat 10430 Kring Pajak : (021) 500200 : 3909025 39099s0 Faksimili 3909944 homepage : http:\\www.pajak. go.id : SURAT KETERANGAN Nomor : KET-04/WPJ.06/KP .090112013 Yang bertanda tangan di bawah ini Nama / NIP Pangkat / Golongan : Joice M.W. Samallo, SE.l 195710111984122001 PenataTk. I/(IIYd) Jabatan Kepala Sub Bagian Umum Unit Organisasi KPP Pratam a J akarta Senen dengan ini menerangkan bahwa: Nama Evie Trie Hardiani NIM 109082t00022 Program Studi Strata Satu (S1) Akuntansi lnternasional Judul Skripsi "Pengaruh Penerapan Sistem Administrasi Perpajakan Modern Terhadap Kepatuhan Wajib Pajak Orang Pribadi' Benar telah melalaanakan Riset di Kantor Pelayanan Pajak Pratama Jakarta Senen terhitung mulai tanggal L5 Maret 2013, yaitu sesuai dengan program serta jadwal yang telah ditetapkan dengan predikat Baik. Demikian surat keterangan ini kami berikan untuk dapat dipergunakan sebagaimana mestinya. Jakarta, L9 Februari 2013 SE. 1984122001