Taxpayer Compliance Based on Awareness and Policy

Article History: Received October 22, 2020 Accepted February 27, 2021 Available March 15, 2021 This study examines the effect of tax policy aspects and awareness on taxpayer compliance in Kuningan Regency. The policy aspects in this study have manifested by tax sanction and Fiscus service quality. This study uses questionnaires which have distributed by random sampling technic. By using the multiple linear regression analysis, this study reveals that tax sanctions, Fiscus service quality, and taxpayer awareness positively affect taxpayer compliance. Aspects of government policy in tax sanctions are more significant than taxpayers’ awareness to affect taxpayer compliance. It means that strict tax sanctions have been necessary accompanied by improving the Fiscus services quality as part of the tax services paradigm. This study can be used as a reference to reexamine the determinants of taxpayer compliance, especially in areas with the same characteristics as the object of this study. Future research is expected to examine the equilibrium between economic and non-economic variables more deeply in increasing taxpayer compliance. It is essential because which variable most determines taxpayer compliance is still unclear, whether theoretically or practically.


INTRODUCTION
Indonesia's tax ratio is one of the lowest between countries in the Asia Pacific. For example, Indonesia's tax ratio in 2017 stood at 11.5%, below the average for member countries of the Organization for Economic Co-operation and Development (OECD), which has 34.2% (OECD, 2020). Based on data from the Ministry of Finance, Indonesia's tax revenue has never reached the target for the last 4 years. In 2015, Indonesia's tax realization was only 83.29%, 2016 was 83.48%, 2017 increased to 91.23%, 2018 became 93.86%, and 2019 fell back to 84.4%.
State revenue to move the wheels of the economy still depends heavily on tax revenue. Efforts to increase tax revenue in Indonesia need to be intensified, especially concerning taxpayer compliance. Some studies include Harimulyono (2008), Suhendra (2011), Anggraeni et al. (2013), Silalahi (2015), and Yeni (2013), found empirical evidence that taxpayer compliance can affect tax revenue. Therefore, examining the factors that determine taxpayer compliance is essential to formulate practical efforts to increase it. Moreover, taxpayer compliance is difficult (Garcia et al., 2020).
One of Indonesia's districts that need to increase taxpayer compliance is Kuningan Regency at West Java Province. From 2014 to 2018, taxpayer compliance in the district with much potential in agriculture and tourism was 49.7% on average (KPP Pratama Kuningan). This condition is profoundly concerning because if compared with the average national individual taxpayer compliance in 2017, it is at 70% (Pajak.go.id, 2017). On that basis, this study seeks to examine the determinants of individual taxpayer compliance in Kuningan Regency. Apart from the fact that taxpayer compliance is still a concern, Kuningan was chosen as the research object because Kuningan is the second impoverished district in West Java. This study's results are supposed to be an additional reference in examining taxpayer compliance in other Districts classified as destitute.
One of the theories that researchers overuse in examining taxpayer compliance determinants is the theory of planned behaviour (TPB) from Ajzen (1991). TBP states that behaviour was driven by intention, which is determined by 3 elements: attitude toward behaviour, subjective norms, and perceived behavioural control (Ajzen, 1991). Benk et al. (2011) adopted the TBP theory in the context of taxpayer compliance into 3 components: equity attitudes, normative expectations, and legal sanctions. Meanwhile, by adopting TBP, Taing & Chang (2020) categorizing tax awareness, power of authority, tax compliance, and tax information variables into the perceived behavioural control component, it is considered tax compliance.
This study seeks to re-examine the determinants of tax compliance based on aspects of policy and awareness. The variables for the policy aspects used were legal sanctions and Fiscus services quality. Marandu et al. (2015) stated that legal sanctions and Fiscus services quality are also part of the perceived behavioural control components. However, Marandu et al. (2015) mentioned Fiscus services quality as the tax authority's role. This study was chosen these three variables because economic aspects such as the level of sanctions and tax ratios are not sufficient in increasing taxpayer compliance (Alm et al., 2012). The economic element needs to be balanced by emotional aspects, including awareness (Enachescu et al., 2019).
Some studies reflected legal sanctions by different variables. Some studies use the tax sanction variable, while some others use tax penalties terminology. Tax sanctions are associated with any sanctions that tax offenders will receive, both fines and penalties. However, tax penalties are better known as penalties due to tax administrative violations such as delays, avoidance, and others. Several studies have succeeded in proving a positive influence between tax sanctions on tax compliance in the Indonesian context. Among these studies are Mutia ( Dewi & Merkusiwati (2018), and Sapriadi (2013). Nevertheless, Wahyudi (2019) and Triandani & Apollo (2020) show that tax sanctions do not affect tax compliance. Meanwhile, Rahmawati & Yulianto (2018) stated that tax penalties do not affect tax compliance.
According to Paramonova (2015), tax sanctions tend to be effective in areas with relatively low educating populations. On that basis, seeing Kuningan Regency's condition as one of the most impoverished districts in West Java, tax sanctions' imposition is considered sufficient. Tax sanctions in this context targeted economically advantaged groups who violate taxes. According to Devos (2014), individuals with high social status tend to be motivated by sanctions, but those with a low economic situation cannot be affected. Thus, it is essential to enforce tax sanctions for tax offenders with high financial capabilities to support economic equality. Based on this, the first hypothesis in this study is: However, tax sanctions that are too strict with audit rates and severe fines tend to provoke non-compliance (Batrancea et al., 2019). A humanist approach is also needed to build trust from taxpayers in the government to produce compliance (Siglé et al., 2018). One of the tax authorities' efforts to make this trust is by providing the best quality services. Kirchler (2007) found a customer relationship between taxpayers and tax officials. Taxpayers want the best service quality from the tax authorities instead so that the interaction between tax-payers and tax officers will encourage taxpayer compliance (Silva, Guerreiro, & Flores, 2019 (2019), and Tanilasari & Gunarso (2017) have proven that the quality of tax authorities affects taxpayer compliance. However, research conducted by Handayani & Laily (2017), As'ari (2018), and Ismail & Akmila (2017) failed to prove the effectiveness of the Fiscus services quality on taxpayer compliance. However, by referring to the change in the taxation paradigm from a "criminal paradigm" to a "services paradigm" (Silva et al., 2019), the Fiscus services quality is still considered as an essential factor to improve taxpayer compliance. Therefore, the second hypothesis in this study is: The quality of tax authorities has a positive effect on taxpayer compliance Emotional aspects are also crucial for increasing tax compliance (Enachescu et al., 2019). Taxpayer awareness is an emotional aspect that is considered to be an essential aspect in determining tax compliance. According to Taing & Chang (2020), tax awareness is a component of perceived behavioural control in TBP theory. Individuals aware of their tax obligations tend to have a significant intention to show tax compliance behaviour, even in conditions where their trust in the government is relatively small.
Research Although several other studies such as Syaiful (2016) and Ismail & Akmila (2017) stated that taxpayer awareness does not affect tax compliance when referring to TBP, the third research hypothesis in this study is: H 3 : Tax Awareness has a positive effect on tax compliance

RESEARCH METHODS
This study's data used a questionnaire with a scale of 1 to 5 from taxpayers in the KPP Pratama Kuningan. The total number of individual taxpayers in Kuningan is 223,886 (KPP Pratama Kuningan, 2018). Of these, as many as 105,226 taxpayers reported their SPT. After being categorized by income range, type of profession, and domicile area, this study's total population was 22,993 individual taxpayers. Based on these population numbers, the sample size is determined based on the equation 1: Where n = number of samples, N = number of populations, and e = margin of error tolerance. This stu- .1 dy sets a fault tolerance limit of 10% so the value of n generated from the formula is rounded up to 100 individual taxpayers as the final sample. This study uses the simple random sampling technique to distribute online questionnaires to 130 taxpayers from August 2019 to January 2020. Of the total distributed questionnaires, 112 The respondents' characteristics in this study came from various professions, including government employees, the private sector, to entrepreneurs. The operationalization of the variables in this study are shown by tabel 1 and the multiple regression equation model of this study can be seen in equation 2: Where α=constant or the dependent value if all the independent value is 0. Value of β 1 , β 2 , β 3 = regres-(Strongly Reliable); 0.749 (Strongly Reliable); 0.593 (Moderately Reliable); 0.645 (Strongly Reliable). According to Sugiono (2014), the instrument can be declared reliable if the Cronbach Alpha value was more significant than 0.6. By reviewing the result, the service quality instrument can be declared unreliable. It means that the instrument of Fiscus service quality has not been capable of measuring the same variables in other research objects. Furthermore, the description of the results of descriptive statistical analysis is shown by table 3.
The descriptive statistics shows that each research variable's conditions get the instrument value with a larger scale average. When viewed from the average respondents' answers, taxpayer awareness receives the most excellent value, followed by tax sanctions, Fiscus service quality, and taxpayer compliance. However, it should be emphasized that the results of this descriptive statistical analysis illustrate the answers of taxpayers who report annual their taxes obligation in 2018. On that basis, the value of taxpayer compliance does not show taxpayer compliance for all taxpayers who have NPWP in Kuningan. According to data from KPP Pratama Kuningan as of 2018, individual taxpayers' overall compliance level is only 49.7%.
Multiple linear regression analysis in this study The level of knowledge of the tax function, understanding tax obligations, experience tax functions, and the ability to calculate, pay and report taxes correctly +

RESULTS AND DISCUSSIONS
The data obtained were then tabulated and tested for validity and reliability. The validity test compares the Pearson correlation value of each question item on the questionnaire with the r-table value at the 0.01 significance level. If the Pearson correlation or r-count value in the degree of freedom (DF = N-2) is greater than the rtable, then the question item can be declared valid (Ghozali, 2011). The reliability was checked by reviewing the Cronbach Alpha (α) value of each research variable. If the α value is between 0.00 -0.199 then the reliability is in very low level, 0.20 -0.399 is low, 0.40 -0.599 is moderate, 0.60 -0.799 is strong, and if 0.80 -1.00 then the reliability is very strong (Sugiono, 2014). Table 2 shows the results of the validity test of the taxpayer awareness, tax sanctions, fiscus services quality, and taxpayer compliance instrument in this study and all question items on the taxpayer awareness instrument are declared valid. Furthermore, Respectively, the reliability for the taxpayer awareness, tax sanctions, fiscus services quality, and taxpayer compliance is 0.601 uses the Ordinary Least Square (OLS) approach. Therefore, it is necessary to test classical assumptions as a prerequisite for estimating the estimator data. This study was tested the classical assumptions carried out, namely normality, multicollinearity, and heteroscedasticity. The following table 4 is a summary of the classic assumption tests. This study's model fulfils the normality assumptions and is free from multicollinearity and heteroscedasticity. On that basis, this model can be stated as BLUE (best linear unbiased estimator). Table 5 is the result of multiple linear regression analysis in this study and the regression equation for this study is shown by equation 3: Based on the multiple regression equation, the effect of tax services' quality tends to be smaller than

The Effect of Tax Sanctions on Taxpayer Compliance
The results of this study prove that there is a positive effect of tax sanctions on taxpayer compliance. Therefore, firmer tax sanctions are needed to encourage an increase in the percentage of taxpayer compliance in Kuningan, which is still low. Tax sanctions in this study are the variable that has the most significant influence on taxpayer compliance. The relatively large effect of tax sanctions on taxpayer compliance at KPP Pratama Kuningan shows that relatively large law enforcement and fines are still important factors to be applied.
According to TBP, sanctions are part of perceived behavioural control that can determine the intention of taxpayer compliance behaviour (Benk et al., 2011). Therefore, taxpayers, especially those with high welfare who violate taxes, need to pursue their taxes to support economic equality. According to Devos (2014), individuals with high social status will be motivated by sanctions, but those with a low financial situation cannot be affected.
The findings of this study are in line with research from Mutia (2014) in Padang, Ngadiman & Huslin (2015) in Kembangan Jakarta, Wicaksana & Supadmi (2017) in Tabanan, Anam et al. (2016) in Salatiga, Ismail & Akmila (2017) in Jepara, Syaiful (2016) in Padang, Dewi & Merkusiwati (2018) in Denpasar, and Sapriadi (2013) in Rejang Lembong. This study can be used as  Notes: The multicollinearity was determined by the VIF value and tolerance on all independent variables. If the VIF value is less than 10, and the tolerance is more significant than 0.1, the variable is declared free from multicollinearity disorders. The Kolmogorov Smirnov test carries out the normality test, and if the value is more significant than 0.05, the research model can be declared to meet the normality assumption. The heteroscedasticity determined by the Glejser test of the absolute residual value. If the value is more significant than 0.05, then the research model is declared free from heteroscedasticity disorders. an argument that tax sanctions are still more dominant than the awareness aspect until now. But of course, it is hoped that taxation policy will be less coercive because the heavier the sanctions are applied, it can also trigger non-compliance (Batrancea et al., 2019;Enachescu et al., 2019).

The Effect of Fiscus Service Quality on Taxpayer Compliance
The quality of tax office services as part of the tax policy in this study is also proven to affect individual taxpayer compliance. The better the quality of service provided by tax officers, the more taxpayers tend to have better tax compliance. In the context of this research, the service quality of the tax authorities or tax officers is relatively in a reasonably good category. However, the limited quantity of tax authorities tends to be an issue that needs to be anticipated immediately.
This study strengthens Kirchler (2007) assumption that there is a customer relationship between taxpayers and tax officers. If the quality of tax services tends to be high, taxpayers will be satisfied, thus triggering compliance (Silva et al., 2019). This research is also supported by the previous study conducted by Sania & Yudianto (2018), Yunianti et al. (2019), Anam et al. (2016), Wahyudi (2019), and Tanilasari & Gunarso (2017). On that basis, good service quality from tax officers can provide a sense of comfort and trust from taxpayers in Kuningan Regency to increase their compliance.

The Effect of Tax Awareness Against Taxpayer Compliance
The results of this study prove that awareness affects individual taxpayer compliance at KPP Pratama Kuningan. This finding tends to support the opinion of Güzel et al. (2019), which states that non-economic aspects such as taxpayer awareness are also essential to increase taxpayer compliance. Referring to TBP that awareness is also part of perceived behaviour control (Taing & Chang, 2020), taxpayer awareness needs to be improved through various government efforts. For example, by intensifying tax regulations' socialization to the public, education on taxation from an early age, inviting obedience to pay taxes, and increasing public trust. Individuals aware of their tax obligations tend to have a significant intention to show tax compliance behaviour, even in conditions where their faith in the government is relatively small.
The results of this study tend to be in line with previous studies including those conducted by Rorong et al. (2017) in Manado, Anam et al. (2016) in Salatiga, Dewi & Merkusiwati (2018) East Denpasar, Wicaksana & Supadmi (2019) in Tabanan, Tanilasari & Gunarso (2017) in South Malang, Kusumaningrum & Aeni (2017) in Pati, and Wahyudi (2019) in Bangkalan. When viewed from the poverty level, the characteristics of Kuningan with a poverty rate of 11.30% are similar to Manado with a poverty rate of 9.22%, Salatiga 10.8%, Pati 9.90%, and Bangkalan 18.9%. Therefore, although it cannot be generalized to taxpayers throughout Indo-nesia, this study's results can be used to reference regions with a reasonably high poverty level category.

CONCLUSIONS
This study indicates that both the awareness and policy aspects in the form of tax sanctions and Fiscus quality services positively affect taxpayer compliance in the KPP Pratama Kuningan. The taxpayer awareness effect was smaller than the tax sanction but more prominent than the tax authorities in influencing taxpayer compliance. On that basis, the government's role in increasing taxpayer compliance and taxpayer revenue is dominant.
The government supposed to formulate strategies with an appropriate and effective policy in increasing taxpayer compliance. The government should become more assertive in enforcing tax sanctions, balanced with efforts to improve tax authorities' services quality as part of implementing the taxation services paradigm. This study can be used as a reference to reexamine the determinants of taxpayer compliance, especially in areas with the same characteristics as the object of this study. Future research is expected to examine the economic and non-economic variables more deeply in increasing taxpayer compliance simultaneously. It is essential because which variable most determines taxpayer compliance is still unclear, whether theoretically or practically.