Indonesia Conference Directory

Abstract – Tax evasion is one of the problems existing in every country in this world, has a negative impact on a country-s economy; where the worth of tax evasion worldwide exceeds US $ 3.1 trillion or 5.1% of global gross domestic product. Tax evasion is classified as an illegal act, it is an attempt to avoid tax payable by violating tax laws. Indonesia is a country that includes the world top ten countries with the majority of illicit financial depletions, which is more than USD 109 billion; therefore, the Minister of Finance in the DJP-DJBC Synergy Program Kick Off (CNBC Indonesia, 2018) asked those two Directorates to synergize and consistently try to prevent tax evasion. Especially at DJBC for the last 6 years, 2013 - 2018, the average annual increase in the Number of Importers Conducting Tax Evasion was 55.48%; this becomes a research gap for in-depth study. The purpose of this research is to find out and analyze what factors influence the occurrence of tax evasion, especially at DJBC. This research uses a mixture of quantitative and qualitative methods; Structural Equation Modeling (SEM) is applied for quantitative method, meanwhile the qualitative method aims to deepen and confirm the variables studied. Primary data collection is conducted by distributing questionnaires to 135 respondents, consisting of Importers and Customs Consultants; besides that, triangulation is also conducted, which interviewed with several relevant officials at DJBC, observation, and documentation. The results of this research with t table = - 1982 is Customs Audit (CR = - 4,934), Self-Assessment System (CR = - 3,592), Information Technology (CR = - 5,348) and Possibility of Fraud Detection (CR = - 2,421) influenced significantly negative for Tax Evasion. Whereas two other independent variables namely Quality Service (CR = - 1.610) and Law Enforcement (CR = - 1,276) have no effect on Tax Evasion. The recommended and confirmed outcome from interviews and documentation is the consistent implementation of Customs Audit (including Joint Audit with DJP) and the more professional handling of Law Enforcement process, which is the preparation of documents and related evidence for this case.