The Role of Administrative Modernization in Shaping Tax Moral to Increase Taxpayer Compliance: Case Study in Madiun, Indonesia

Abstract

The study presented in this paper aimed to find out and obtain empirical evidence about the role of administrative modernization of the tax collector entity in shaping tax morals to improve private individual taxpayer compliance. Sampling in this study used the purposive sampling method, which resulted in a sample of 244 respondents in the city of Madiun (Indonesia). Data analysis was conducted by means of Structural Equation Modeling (SEM) with Partial Least Squares (PLS). The results showed that morals were positively influential towards taxpayer compliance. Furthermore, high morals positively influence the taxpayer’s compliance with the modernization of the tax collector administration as moderation variables.