INFLUENCE OF TAXPAYERS EDUCATION LEVEL AND TRUST TO TAX AUTHORITY TOWARD TAX COMPLIANCE OF NON EMPLOYEE TAXPAYERS

Abstract

Based on data from Directorate General of Taxes (DGT), until 31 December 2016, realization of tax revenue still had not reached the target. Unfortunately tax revenue in Indonesia is generally still dominated by corporation, only few which come from individual taxpayers. The purposes of this research are to know whether education level and trust affects tax compliance. This research applies quantitative descriptive method. The research objects are taxpayers’ education level, taxpayers’ trust to government in managing tax revenue, and tax compliance. The data is collected through questionnaire which consists of 4 sections and 16 questions. The questionnaire is adopted from Mulder et.al. (2009) and Choiriyatuz Zahidah (2010) study which uses Likert scale. There are 97 samples. The result shows education and trust affect tax compliance. Higher the taxpayers’ education level, so it will affect more their tax compliance. If tax authority manages tax for giving facility as well, taxpayers’ trust to tax authority increases. If so, it increases Taxpayers’ compliance. The R2 is 0.64 means 64% independent variation is observed. Directorate General of Tax (DGT) is expected cooperating with other institutions. In this case DGT is supposed collaborating with education ministry. Those institutions could always insert taxation material. It can be inserted in related subject in every education level. This aims to raise tax awareness among student as future taxpayers to pay tax. Government should always improve public facility which the fund is from tax. Tax authority is supposed to be trust by people that encourage taxpayer pay tax for public welfare.