THE INFLUENCE OF TAX KNOWLEDGE AND TAX FAIRNESS TOWARD TAX COMPLIANCE

Abstract

Taxes plays an important role in the State Budget (APBN) because it is one of the largest source of State Revenue. Positive attitudes towards factors such as tax knowledge, the perceived fairness of the tax system are considered to play an important role in the level of tax compliance within a country. The tax literature indicates that not only knowledge but an understanding of the tax system may have an effect on taxpayers' perceptions of fairness and attitudes towards compliance. This study aims to determine the influence of Tax Knowledge and Tax Fairness toward Tax Compliance. Sampling method used in this research is Accidental Sampling method, primary data used through questionnaire collecting. The participant will be asked to fill in the questionnaire regarding tax compliance, tax knowledge, and tax fairness. Responses will be measured on a five point Likert scale, ranging from 1 (strongly disagree) to 5 (strongly agree). The researcher used multiple linear regression analysis to perform hypothesis testing. The results of this study shows that tax knowledge has a positive significant influence toward tax compliance. That being said the first hypothesis is supported. Tax fairness has a positive but nonsignificant influence toward tax compliance. That being said the second hypothesis is rejected.