Abstract:
The Minister of Finance stated that Indonesia still has a very low level of tax compliance so that Indonesia continues to face a large amount of state budget deficit. Therefore, it is necessary to consider the factors that can motivate people in tax compliance. Previously, there are no studies and testing has been done to ensure guilt factors in tax compliance. Moreover, there are also inconsistencies of previous studies in explaining the effect of tax knowledge on tax compliance. Therefore, this study examines whether the guilt has effects towards tax compliance by using the three guilt cognitions as sub dimension which are (a) responsibility for the results of a decision, (b) justification for decision that has been taken, and (c) foreseeability of consequences from a decision and examine the effects of tax knowledge towards tax compliance. There were 130 respondent data are collected using purposive sampling that is spread through social media. A total of 106 respondent complete data are valid and can be processed in this study. The data are analyzed using linear regression model with statistical software. The results of this study explained that guilt has significant effects on tax compliance. Through this study, the inconsistencies about the effect of tax knowledge to tax compliance are also clarified that tax knowledge has significant effects on tax compliance.
