Abstract:
From year to year, the number of target of tax revenue in State Budget Draft is always increasing, but somehow but the realization has not yet reached the expectation. Several studies state that the target was not achieved because people reluctant with their obligations to pay taxes, which leads to the occurrence of tax evasion. Whereas the tax itself is the largest source of state revenue allocated for development in all regions. This research was conducted to examine the influence of tax understanding, tax system, and tax sanctions towards tax evasion. The data used in this study were obtained from 106 individual taxpayers who have NPWP who work in Jakarta. An electronic questionnaire used to gather the data, and spread out to various kinds of social media, and SEM-PLS used to analyse the data. The result indicated that tax evasion influenced by tax system, but not with tax understanding and tax sanctions. There are several limitations regarding the sample and variables. Therefore, future research could look forward to broadening the variables since there are many factors that could cause tax evasion and expand the areas of the sample or gain the data from the taxpayer office to get accurate data and do some interviews. Taxpayers, the government, and the DGT must be aware of their own responsibilities and raise awareness of the importance to pay taxes in accordance with state interests so in order to minimize the occurrence of tax evasion.
