Taxpayer Compliance, Trust, and Power

Abstract

Self-assessment system as adopted in Indonesia, focusing on taxpayer aware- ness. Therefore trust should be the spearhead of tax compliance rather than power. This study aims to examine how trust and power play a role in improv- ing tax compliance by the slippery slope framework. Method of data collection in this research surveys in Central Java. The sampling technique is a multi- stage sampling that combines stratified random sampling and convenience sampling. Data has been collected from October 2015-April 2016, and 242 in- struments were collected (86.4 percent response rate). By using multiple regres- sion tests, the results of this study indicate that trust and power both simulta- neously and partially affect tax compliance. Based on the coefficient different test, power has a greater impact than trust in creating tax compliance. This means that the compliance created in Indonesia is mandatory compliance that denies from self-assessment system that based on voluntary compliance