Analysis of Tax Amnesty Effectiveness in Indonesia
Tarsis Tarmudji, Ain Hajawiyah* and Trisni Suryarini
Faculty of Economics, Universitas Negeri Semarang, Semarang, Indonesia
Gedung L Kampus Sekaran, Gunungpati
*085642734078/ainhajawiyah[at]gmail.com
Abstract
This paper aims to describe the effectiveness of tax amnesty implementation in Indonesia in the term of tax base, tax compliance, and tax revenue. The paper opted for a quantitative descriptive study. The data were collected by documentary analysis, including annual report and performance report of Indonesia Directorate General of Tax. The paper provides insights about the effectiveness of tax amnesty 2016-2017 in Indonesia. It suggests that tax amnesty can improve tax base, tax revenue, and tax compliance among tax payer. Furthermore, in order to check the effect of tax amnesty implementation towards tax compliance, this paper also use quantitative study using manufacturing firms listed in Indonesia Stock Exchange as a sample. Panel data regression by using STATA software was used while samples was chosen by purposive sampling technique. The result shows that tax amnesty increase tax compliance among firms. Because of the chosen research approach, the research result is specific and may lack of generalizability. Therefore, researchers are encouraged to test the proposed propositions further. The paper includes implications for the tax regulator in implementing tax amnesty in the future. This paper fulfills an identified need to study the effectiveness level of tax amnesty implementation in Indonesia. As per our knowledge, there is no previous paper that use detailed data to describe the tax amnesty implementation in Indonesia.
Keywords: tax amnesty, tax base, tax compliance, tax revenue
Topic: Accounting