The Influence of Tax Officers’ Service and Taxpayers’ Satisfaction on

Taxpayers’ Compliance in KPP Pratama Cikarang Selatan

SKRIPSI

By

Kardini Marsella Putri

008201100040

Presented to

The Faculty of Business, President University

In partial fulfillment of the requirements

for

Bachelor Degree in Economics, Major in Accounting

PRESIDENT UNIVERSITY Cikarang Baru – Bekasi

Indonesia

2018 i ii ORIGINALITY REPORT

Tax Officer Service

ORIGINALITY REPORT

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viii DECLARATION OF ORIGINALITY

I hereby declare that the skripsi entitled “The Influence of Tax Officers’ Service and

Taxpayers’ Satisfaction on Taxpayers’ Compliance in KPP Pratama Cikarang

Selatan” is originally written by myself based on my own research and has never been used for any other purpose before. I, therefore, request for Oral Defense of the Skripsi.

Cikarang, Indonesia, January 8th 2018

Researcher,

Kardini Marsella Putri

008201100040

ix ACKNOWLEDGEMENT

Alhamdulillah, all praise to God Almighty for His greatness and for giving me strength and courage to finish this thesis.

I would like to thank and express my sincere gratitude to my supervisor, Mr. Arie Pratama, SE, M.Ak, CPSAK, for his continuous guidance and encouragement. I greatly appreciate all his contributions of support, time, and ideas.

I would like to express my gratitude to the Dean of Faculty of Business, Mr. Prof. Dr. Ajay Chauhan, the Head of Accounting Study Program, Mrs. Andi Ina Yustina M.Sc., Mrs. Dr. Ika Pratiwi Simbolon, S.E., M.M, Mr. Dr. Josep Ginting, CFA, Mrs. Srie, and all staff and lecturers in Accounting Department, Faculty of Business, President University, for their cooperation and kindness.

I would also like to express my gratitude to Mr. Joshua, Mr. Egi, Mr. Diski, and all staff in KPP Pratama Cikarang Selatan for all the support that has been given in facilitating smooth work of my research.

My deepest gratitude goes to my beloved parents, brothers, sister, and best friends for their endless love, kindness, patience, and encouragement. I owe everything to my family that has encouraged, assisted me at every stage of my life, and longed to see this achievement come true.

I would like to thank everybody who was important to the successful realization of this thesis, as well as expressing my apology that I could not mention personally one by one. Your kindness means a lot to me.

x Kardini Marsella Putri

TABLE OF CONTENTS

PANEL OF EXAMINERS APPROVAL SHEET...... Error! Bookmark not defined. RECOMMENDATION LETTER OF SKRIPSI ADVISER ...Error! Bookmark not defined. ORIGINALITY REPORT ...... iii DECLARATION OF ORIGINALITY ...... ix ACKNOWLEDGEMENT...... x LIST OF TABLES ...... xiv LIST OF FIGURES ...... xv ABSTRACT...... xvi I. INTRODUCTION ...... 1 I.1 Research Background ...... 1 I.2 Problem Identification and Statement...... 3 I.3 Research Objectives...... 4 I.4 Research Benefits...... 4 II. LITERATURE REVIEW ...... 6 II.1 Taxation ...... 6 II.1.1 Definition of Taxation...... 6 II.1.2 Characteristics of Taxes ...... 7 II.1.3 Principles of Taxation ...... 7 II.1.4 Self-Assessment System ...... 8 II.2 Tax Officers’ Service...... 9 II.2.1 Definition of Service ...... 9

xi II.2.2 Measurement of Service...... 10 II.3 Taxpayers’ Satisfaction...... 11 II.3.1 Definition of Satisfaction ...... 11 II.3.2 Measurement of Satisfaction...... 12 II.4 Taxpayers’ Compliance ...... 13 II.4.1 Definition of Compliance...... 13 II.4.2 Measurement of Compliance ...... 13 II.5 Previous Researches ...... 15 II.6 Theoretical Framework...... 16 II.6.1 The Influence of Tax Officers’ Service on Taxpayers’ Compliance ...... 16 II.6.2 The Influence of Taxpayers’ Satisfaction on Taxpayers’ Compliance...... 17 II.6.3 The Influence of Tax Officers’ Service and Taxpayers’ Satisfaction simultaneously on Taxpayers’ Compliance ...... 17 II.7 Formulating Research Hypothesis...... 18 III. RESEARCH METHODOLOGY...... 19 III.1 Research Method...... 19 III.1.1 Dependent Variable ...... 19 III.1.2 Independent Variable...... 20 III.2 Operational Definition...... 20 III.2.1 Tax Officers’ Service...... 20 III.2.2 Taxpayer’s Satisfaction...... 21 III.2.3 Taxpayer’s Compliance ...... 22 III.3 Population and Sample...... 25 III.3.1 Population ...... 25 III.3.2 Sample ...... 25 III.4 Data Collection Methods...... 26 III.4.1 Primary Data...... 27 III.4.2 Secondary Data...... 27 III.5 Data Analysis ...... 27 III.5.1 Descriptive Statistic ...... 28 III.5.2 Validity and Reliability Test...... 28 III.5.3 Classical Assumption Test...... 29

xii III.5.4 Hypothesis Test...... 30 IV. RESEARCH FINDINGS AND DISCUSSION ...... 33 IV.1 Descriptive Statistics Analysis...... 33 IV.1.1 Characteristics of Respondents...... 33 IV.2 Validity and Reliability Tests...... 35 IV.3 Analysis of Research Variables...... 39 IV.3.1 Tax Officers’ Service in KPP Pratama Cikarang Selatan...... 40 IV.3.2 Taxpayers’ Satisfaction in KPP Pratama Cikarang Selatan ...... 41 IV.3.3 Taxpayers’ Compliance in KPP Pratama Cikarang Selatan...... 42 IV.4 Classical Assumption Test ...... 43 IV.4.1 Normality Tests ...... 43 IV.4.2 Heteroscedasticity Tests ...... 44 IV.4.3 Multicollinearity Test ...... 44 IV.5 Hypothesis Testing...... 45 IV.5.1 t-Test...... 45 IV.5.2 F Test ...... 45 IV.5.3 Coefficient of Determination Test...... 46 IV.6 Discussion ...... 46 IV.6.1 The Influence of Tax Officers’ Service on Taxpayers’ Compliance...... 47 IV.6.2 The Influence of Taxpayers’ Satisfaction on Taxpayers’ Compliance ...... 48 IV.6.3 The Influence of Tax Officers’ Service and taxpayers’ Satisfaction Simultaneously on Taxpayer Compliance...... 49 V. CONCLUSIONS AND RECOMMENDATIONS...... 50 V.1 Conclusions ...... 50 V.2 Recommendations ...... 51 REFERENCES...... 53 APPENDICES ...... A

xiii LIST OF TABLES

Table II.1 Previous Researches...... 15

Table III.1 Measurement of Variables ...... 23

Table IV.1 Education Level of Respondents ...... 34

Table IV.2 Occupation of Respondents ...... 34

Table IV.3 Number of Dependents ...... 35

Table IV.4 Validity Test of Tax Officers’ Service ...... 36

Table IV.5 Reliability Test of Tax Officers’ Service...... 36

Table IV.6 Validity Test of Taxpayers’ Satisfaction ...... 37

Table IV.7 Reliability Test of Taxpayers’ Satisfaction ...... 37

Table IV.8 Validity Test of Taxpayers’ Compliance...... 38

Table IV.9 Reliability Test of Taxpayers’ Compliance ...... 38

Table IV. 10 Questionnaire Assessment Criteria...... 39

Table IV.11 Assessment of Tax Officers’ Service...... 40

xiv Table IV.12 Assessment of Taxpayers’ Satisfaction ...... 41

Table IV.13 Assessment of Taxpayers’ Compliance...... 42

Table IV.14 One-Sample Kolmogorov-Smirnov Test...... 43

Table IV.15 Glejser Test...... 44

Table IV.16 Multicollinearity Test ...... 44

Table IV.17 t-Test ...... 45

Table IV.18 F Test ...... 46

Table IV.19 Coefficient of Determination Test ...... 46 LIST OF FIGURES

Figure 2.1 Research Paradigm ...... 18

xv ABSTRACT

This research is conducted to determine the influence of tax officers’ service and taxpayers’ satisfaction on taxpayers’ compliance. The data collection technique used in this research is questionnaires and the sample is 100 Individual Taxpayers in KPP Pratama Cikarang Selatan. This research uses multiple linear regression analysis method. The result of the first hypothesis test where t count (4.110) > t table (1.984) or with a significant value 0.000 < 0.05 is the tax officers’ service has a positive and significant influence on the taxpayers’ compliance (H1 is accepted). The result of the second hypothesis test where t count (2.877) > t table (1.984) or with a significant value 0.005 < 0.05 is the taxpayers’ satisfaction has a positive and significant influence on the taxpayers’ compliance (H2 is accepted). The result of the third hypothesis test where F count (114.430) > F table (3.09) or with a significant value 0.000 < 0.05 is the tax officers’ service and the taxpayers’ satisfaction simultaneously have a positive and significant influence on the taxpayers’ compliance (H3 is accepted). This research shows that 70.2% (r2= 0.702) of the taxpayers’ compliance variable can be explained by the tax officer service and taxpayers’ satisfaction variables, or the ability of the independent variables to influence the taxpayers’ compliance is equal to 70.2% and the remaining 29.8% is influenced by other factors that are not included in this research. Keywords: Tax Officers’ Service, Taxpayers’ Satisfaction, Taxpayers’ Compliance.

xvi INTISARI

Penelitian ini dilakukan untuk mengetahui pengaruh pelayanan petugas pajak dan kepuasan Wajib Pajak terhadap kepatuhan Wajib Pajak. Teknik pengumpulan data yang digunakan dalam penelitian ini adalah kuesioner dan sampelnya adalah 100 Wajib Pajak Orang Pribadi di KPP Pratama Cikarang Selatan. Penelitian ini menggunakan metode analisis regresi linier berganda. Hasil uji hipotesis pertama dimana t hitung (4.110) > t tabel (1.984) atau dengan nilai signifikan 0.000 < 0.05 adalah pelayanan petugas pajak berpengaruh positif dan signifikan terhadap kepatuhan Wajib Pajak (H1 diterima). Hasil uji hipotesis kedua dimana t hitung (2.877) > t tabel (1.984) atau dengan nilai signifikan 0.005 < 0.05 adalah kepuasan Wajib Pajak berpengaruh positif dan signifikan terhadap kepatuhan Wajib Pajak (H2 diterima). Hasil uji hipotesis ketiga dimana F hitung (114.430) > F tabel (3.09) atau dengan nilai signifikan 0.000 < 0.05 adalah pelayanan petugas pajak dan kepuasan Wajib Pajak secara simultan memiliki pengaruh positif dan signifikan terhadap kepatuhan Wajib Pajak (H3 diterima). Hasil penelitian menunjukkan bahwa variabel kepatuhan Wajib Pajak sebesar 70.2% (r2 = 0.702) dapat dijelaskan oleh variabel pelayana petugas pajak dan variabel kepuasan Wajib Pajak, atau dengan kata lain adalah kemampuan variabel independen untuk mempengaruhi kepatuhan wajib pajak sebesar 70.2% dan sisanya 29.8% dipengaruhi oleh faktor lain yang tidak termasuk dalam penelitian ini.

Kata kunci: Pelayanan Petugas Pajak, Kepuasan Wajib Pajak, Kepatuhan Wajib Pajak.

xvii xviii CHAPTER I

INTRODUCTION

I.1 Research Background

Taxes are one source of state revenue. The amount of tax will determine the performance of the state budget to finance its expenditure. How a country's taxes will affect the allocation and distribution of resources and the rate of economic growth. In

2016, the tax revenue benefits 81.54 percent of total domestic revenue (State Budget

2016).

In the country's financial structure, the functions of tax revenue is regulated by the Directorate General of Taxes (DGT) and under the supervision of Ministry of

Finance. Tax collection in Indonesia is conducted by implementing the principles of

Self-Assessment System whereby taxpayers are responsible for counting, calculating, paying, and self-reporting their own tax debts. This means the Self-Assessment gives you greater control and responsibility over your tax obligations.

In 2015, Minister of Finance Bambang Brodjonegoro explained that the tax administration performance has been rather weak ever since 2012. This situation is caused by three factors. First, taxpayer compliance in Indonesia is very low. The percentage of taxpayer compliance is only about 50 percent. Second, the occurrence of revenue leakage that mainly took place in tax refunds or restitution, especially in the

Value Added Tax. Third, the number of taxpayers in Indonesia is woefully small.

1 Every year, tax revenue targets continue to increase. This is in line with the increased funds needed to meet the needs of state expenditure. Many attempts have been made by the DGT to increase tax revenues by improving tax services to facilitate taxpayers when taking care of their tax obligations. Facilities such as submission of tax return with e-filing, taxpayer registration via e-registration, tax payment with e-billing, providing contact center, and simplifying the content of the forms used by the taxpayer to take care of its tax obligations are some examples of efforts that have been made by the DGT to facilitate taxpayers in managing their tax obligations. Nevertheless, with such efforts, taxpayer compliance level in Indonesia in paying its taxes remain unlike what was envisioned.

From the data obtained in the DGT Annual Report 2014, of the 30,574,428 people who have registered as taxpayers, only 58.87% have submitted their Income Tax

Returns. This indicates that the facilities provided by the DGT are still not good enough to improve the taxpayer compliance.

According to Wibisono (2016), the result of studies conducted by World Bank and PricewaterhouseCoopers released in a book titled "Paying Taxes 2016" is the ease of paying taxes is the key of taxpayer compliance.

Taxpayer compliance is a crucial aspect that must be considered thoroughly in an effort to increase state revenue. A high level of service quality performed by tax authorities will encourage the taxpayers to carry out their tax obligations. The greater the number of taxpayers who have paid taxes and reported their Tax Returns, the higher the taxpayer compliance ratio will be.

Taxpayers are an important factor that determines the success of the tax collection process. Therefore, it is important to consider carefully its existence in an

2 effort to raise the awareness of paying taxes as a form of compliance with its tax obligations. For example, providing good tax services, clarity for the taxpayers in taking care of their tax obligations, secure and convenient environment, courtesy and friendly attitude, and others.

The concept of taxpayer satisfaction toward the tax authority is considered in the context of whether there is any confidence in the tax officer and with the assumption; increased satisfaction will lead to improved voluntary compliance. The perception that tax administration is effective, efficient, and fair is a fundamental component in increasing public confidence in government. Supadmi (2010) mentioned that to improve taxpayer compliance in fulfilling its tax obligations, service quality must be improved.

Taxpayer Satisfaction can be influenced by the quality of service received by the taxpayer. This is because every taxpayer has an expectation of how the service will be received. This perception is often different from the reality, where the services performed by tax officials are different from what they expect. In general, satisfaction and dissatisfaction is the difference between expectation and actual performance or perceived service quality. Improving taxation services and taxpayer satisfaction is expected to increase taxpayer satisfaction.

Based on the description above, this research is entitled “The Influence of Tax

Officers’ Service and Taxpayers’ Satisfaction on Taxpayers’ Compliance in KPP

Pratama Cikarang Selatan.”

I.2 Problem Identification and Statement

Based on the explanation on the Research Background, the problem statements in this research are:

3 1. Does tax officers’ service have a significant influence on taxpayers’

compliance?

2. Does taxpayers’ satisfaction have a significant influence on taxpayers’

compliance?

3. Does tax officers’ service and taxpayers’ compliance simultaneously have a

significant influence on taxpayers’ compliance?

I.3 Research Objectives

Based on the Problem Statements, the objectives of this research are:

1. To analyze whether tax officers’ service has a significant influence on taxpayers’

compliance.

2. To analyze whether taxpayers’ satisfaction has a significant influence on

taxpayers’ compliance.

3. To analyze whether tax officers’ service and taxpayers’ satisfaction

simultaneously have a significant influence simultaneously on taxpayers’

compliance.

I.4 Research Benefits

The researcher expects that this research would not only be beneficial for the researcher itself, but also for other parties, such as:

1. To the Researcher

a. To experience conducting a research, collect materials, and analyze data.

b. To obtain deeper knowledge related to the subject or topics covered. The

knowledge obtained serves as a future investment for researcher’s future

career, in which the knowledge obtained is relevant or useful to all accounting

fields.

4 2. As an input to the Tax Office and to be taken into consideration in terms of

improving the service performed by tax officer.

3. For others, the researcher hopes that this study may help those who wish to

understand or discuss about the influence of tax officers’ service and taxpayers’

satisfaction on taxpayers’ compliance.

5 CHAPTER II

LITERATURE REVIEW

II.1 Taxation

II.1.1 Definition of Taxation

According to Seligman as cited in Sulastyawati (2014), tax is a compulsory

contribution from the person, to the government to defray the expenses incurred in the

common interest of all, without reference to special benefit conferred.

According to Adriani (2011), the definition of tax is:

“Taxes are the contributions to the state (which can be imposed) payable to people who are obliged to pay in accordance with the rules (laws), with no direct reward, and used to finance state’s expenditures”.

According to Article 1 of Law No. 16 Year 2009 concerning General Provisions

and Tax Procedures, the understanding of tax is mandatory contribution to the state

owed by the individual or entity that is enforceable under the law, by not getting

rewarded directly and used for the purposes of the state for the greatest prosperity of

the people.

Taxes from an economic perspective are the transfer of resources from the

private sector to the public sector. This understanding shows that the existence of the

tax led to two changes. First, it reduces the ability of individuals to control the

resources used for the benefit of the control of goods and services. Second, increase

the financial capacity of the state in the provision of goods and services allocated to

the public.

6 II.1.2 Characteristics of Taxes

Based on the definitions of tax mentioned above, it can be summarized that tax has several characteristics, such as:

1. Tax is imposed by law. This statement complies with the third constitution

changes article 23A which stated that "taxes and other charges are forced for the

purposes of the state, and based on the act/legislation/law”.

2. Do not accept any reciprocal services which can be shown directly.

3. Tax is intended for the purposes of financing government expenditure in order to

run governmental functions, whether for routine or development.

4. Tax can be imposed. The tax can be imposed if taxpayers do not meet the

obligations of the tax and may be subject to appropriate sanctions legislation.

5. In addition to the function of taxes as budgeter, taxes also serve as a tool to

organize or carry out the state policy in the field of economic and social

(function set/regulator).

II.1.3 Principles of Taxation

The government can collect various types of taxes in accordance with the provisions of the law. Taxation held in many countries based on the principles proposed by Adam Smith. Those principles are as follows:

a. The principle of equality (principle of balance with the ability or fairness),

taxation by the state should be in accordance with the capabilities and income of

the taxpayer. State should not discriminating against a taxpayer.

b. The principle of certainty (principle of legal certainty), all taxation should be

based on the law, so those who violate the law will be subject to sanctions.

7 c. The principle of convenience (principle of timely taxation), the tax should be

levied at the right time for the taxpayers (the best time), for example when new

taxpayers receive income or when the taxpayer receives a gift.

d. The principle of economy (principle of efficient or economical basis), cost of tax

collection conducted as efficient as possible, do not let the cost of tax collection

is greater than the results of tax collection. Because there is no means of taxation

if the cost is greater than the tax revenue that would be obtained.

II.1.4 Self-Assessment System

Tax collection system adopted by Republic of Indonesia is the Self-Assessment

System. This system requires the taxpayers to be responsible for any bookkeeping necessary to determine the amount of tax payable, which is done in the Tax Return.

With the implementation of the Self-Assessment System, a taxpayer is required to determine for themselves the amount of tax due by multiplying the original tariff and their tax bases, then take into account much tax has been paid in the current year

(Diana Sari, 2013).

Mardiasmo (2011) stated that Self-Assessment System has three characteristics, namely:

a. The authority to determine the amount of the taxpayer's own existing.

b. The taxpayer is active, ranging from counting, deposit, and report their own

taxes payable.

c. The tax authorities do not interfere and just oversee.

8 II.1.5 Tax Return

According to Suryarini & Tarmudji (2011), Tax Return is a letter may be used

taxpayer to report the calculation and payment of tax due under the terms of the tax

legislation. The Tax Return divided into two types, there are:

1. The period Tax Return is a letter by the taxpayer is used to report the calculation

and payment of tax payable or the tax period.

2. The annual Tax Return is a letter by the taxpayer is used to report the calculation

and payment of tax payable in a tax year.

Taxpayer is required to report and fill out a Tax Return with clear, correct, and

signed by the taxpayer. The reporting procedure notification letter is as follows:

1. Taxpayer has to pick up a blank Tax Return from the local tax office.

2. The Tax Return must be filled in correctly and completely in accordance with

the instructions provided. Charging incorrect Tax Return form resulting

underpayment of tax payable and will be subject to tax penalties.

3. The Tax Return must be returned back to the relevant Tax Office within the time

limit specified and will be given a receipt dated. If the Tax Return is sent

through the post office should be done recorded, and receipts as well as the

delivery date is considered as proof and date of receipt.

II.2 Tax Officers’ Service

II.2.1Definition of Service

According to Suparlan (2000), service is an effort to provide help to others, both

in the form of material and non-material so that people can solve their own problems.

9 Meanwhile, according to Kotler (2003), service can be defined as an action or performance given by someone to others.

As according to Moenir (2005), service is the process of fulfilling the needs through the activities of others directly.

From the above definitions, tax officers’ service can be interpreted as an effort undertaken by the tax officers to provide convenience to others or service users

(taxpayers). Therefore, service simply can be interpreted as an act done by others to meet the needs of others. However, in its development, the service is used as a parameter in the production process between the service providers and their customers.

Service is needed by human beings, both for personal service and for society.

II.2.2 Measurement of Service

In measuring the tax officers’ service, this research used the SERVQUAL instruments (Zeithaml, Parasuraman, Berry, 1990). There are five dimensions used in the instruments to evaluate service quality. The five SERVQUAL dimensions are:

1. Tangible

It is a range of facilities that can be seen and used the tax office in an

effort to meet the satisfaction of the taxpayer. These variables include the

service procedure in filling and submission of Tax Return, and facilities and

infrastructure at the tax office.

2. Reliability

It is the reliability of tax officers in serving the taxpayer in accordance

with the promised services, and the reliability of the system to support the

services.

3. Responsiveness

10 This variable is intended as a gesture of tax officers who are able to

listen and respond to the taxpayer or the tax officer’s ability to assist and provide

services quickly and accurately.

4. Assurance

These are skills and knowledge needed to be able to provide services

with courtesy, respect, professionalism, and honesty from the tax officer.

5. Empathy

This is a concern given by the tax officer to the taxpayer in an effort to

understand the will and desire of the taxpayer.

II.3 Taxpayers’ Satisfaction

II.3.1 Definition of Satisfaction

Nowadays people are becoming increasingly vocal in their demands, desires,

and aspirations to the government. This shows that as a citizen, the public is

increasingly aware of what is right and obligations. Satisfaction of the citizens

depends on the quality of services provided by the government. Therefore, the

satisfaction rate serves as a differentiator between performances and expectations.

Customer satisfaction is feeling happy or disappointed a person because of a

comparison between the achievements or products perceived and expected (Rangkuti

2003).

According to Pandiangan (2005), customer satisfaction is a situation where the

wishes, expectations, and needs of customers are met. A service is considered

satisfactory if the service can meet the needs and expectations of customers. Customer

satisfaction measurement is an important element in providing better services, more

11 efficient, and more effective services. If customers are not satisfied with the service provided, it is certain that the service provided is ineffective and inefficient.

II.3.2 Measurement of Satisfaction

According to Rahmianto cited in Qodir (2008), in measuring the level of taxpayers’ satisfaction, we could use variables such as procedure, requirement, security, and service.

1. Procedure

Procedures have an important role in an organization. If done correctly,

the procedure will benefit the tax office. When written correctly and clearly,

they can help systems and officers to function better. The procedure in question

is a concise procedure, accurate, easy to read and can be understood by the

taxpayer.

2. Requirement

The clear requirement in question is the documents required from the

taxpayer to take care of their tax obligations. These documents should be easily

prepared and fulfilled by the taxpayer.

3. Security

It is an effort in providing security and comfort for taxpayer, such as

ensuring environmental safety or the services provided. This is because the

sense of safety will make taxpayer feel comfortable when taking care of their

obligations.

4. Service

The service in question is a service provided at the tax office by tax

officers. Service expected by the taxpayer is a service that can give satisfaction

to the taxpayer.

12 II.4 Taxpayers’ Compliance

II.4.1 Definition of Compliance

Tax compliance is defined as a situation where compulsory tax fulfills all tax

obligations. Safri (2008) stated that, "There are two kinds of compliances; material

compliance and formal compliance”.

According to Nurmantu (2005), material compliance is a condition where

taxpayers substantively or naturally meet all material provisions of the tax that are in

accordance with the content and spirit of tax regulations/laws. In contrast to the

material compliance, formal compliance is a state where the taxpayers formally meet

tax obligations in accordance with the provisions of tax laws.

Self-Assessment System gives credence to the taxpayer in carrying out their

obligations, such as counting, paying, calculating, and self-reporting their tax

liabilities. This causes the correctness of tax payments depends on honesty and

taxpayer compliance itself in reporting their tax liabilities.

Taxpayer compliance is expected in the Self-Assessment System, where

compliance arises voluntary, not coerced. Voluntary taxpayer compliance can be

achieved when key elements have been effectively applied that are fairness and

openness in applying tax laws and regulations and simplicity in taxation procedures

with and good and fast services.

II.4.2 Measurement of Compliance

To measure tax compliance, this research will look at how the taxpayer has

fulfilled their tax obligations. In order to provide fairness in taxation and the balance

between the obligations of citizens and the rights of citizens who pay taxes, the Tax

13 Law, the Law on General Provisions and Tax Procedures, states that the obligation of citizens who pay taxes are as following:

1. Obligation to register as a taxpayer

According to the Self-Assessment System, taxpayer have an obligation

to register at the tax office in accordance with the taxpayer's residence area to be

given a Taxpayer Identification Number.

2. Obligation to pay taxes

Taxpayer (individual or entity) in implementing tax obligations must

comply with the Self-Assessment System, which is required to perform his/her

own calculation, payment, and reporting of tax payable.

3. Obligation to correctly fill the Tax Return

This is because tax collection in Indonesia is conducted by implementing

the principles of Self-Assessment System whereby taxpayer are responsible for

counting, calculating, paying the correct amount of tax on set dates, and self-

reporting their own taxes. The Self-Assessment gives the taxpayer greater

control and responsibility over their tax affairs.

4. Obligation to timely submit the Tax Return

As specified in the Tax Law, Tax Return has a function as a means for

the taxpayer to report and account for calculating the amount of tax payable. In

addition, the Tax Return serves to report the payment of taxes, and reported

assets and liabilities. Therefore, the Tax Return has an important meaning for

both the taxpayer and the tax officials.

5. Obligation to cooperate when a tax inspection occurs

Tax inspection is a series of activities to collect and process data,

information, and evidence objectively and professionally in order to know the

14 extent of taxpayer compliance or for other purposes in order to implement the

tax laws and regulations. Therefore, each taxpayer is obliged to cooperate when

examined by the tax officer.

II.5 Previous Researches

Below are the prior researches regarding tax officers’ service, taxpayers’ satisfaction, and taxpayers’ compliance.

Table II.1 Previous Researches 1. Researchers Nunung Nurhayati, Elly halimatusadiah, Diamonalisa (2015).

Title Influence of Tax Officer Service Quality and Knowledge of

Tax on Individual Taxpayer Compliance in Tax Office (KPP)

Bojonagara Bandung.

Variables Service quality of tax officers, tax knowledge, and individual

taxpayers’ compliance.

2. Researcher Mohamad Rajif

Title Pengaruh Pemahaman, Kualitas Pelayanan, dan Ketegasan

Sanksi Perpajakan terhadap Kepatuhan Pajak Pengusaha UKM

di Daerah Cirebon

Variables Understanding, service quality, and tax sanctions.

3. Researcher Nurlis Islamiah Kamil (2015).

Title The Effect of Taxpayer Awareness, Knowledge, Tax Penalties,

and Tax Authorities Services on the Tax Compliance: (Survey

on the Individual Taxpayer at Jabodetabek & Bandung).

Variables Taxpayers’ awareness, tax knowledge, tax penalties, and tax

authorities’ services.

15 4. Researcher Iva Kurnia Setyawati (2010).

Title Pengaruh Kualitas Pelayanan Prima Perpajakan Terhadap

Kepatuhan Wajib Pajak dengan Kepuasan atas Pelayanan

sebagai Variabel Intervening.

Variables Service quality, taxpayers’ compliance, taxpayers’ satisfaction.

II.6 Theoretical Framework

Taxes are one source of state revenue. It is the most stable source of revenue for developing countries. The amount of taxes will determine the performance of the state budget to finance its expenditures. How countries tax affects the allocation and distribution of resources and the rate of economic growth.

According to Siregar & Listyorini (2012), one of the factors that inhibit the activity of collecting taxes is taxpayer compliance. The taxpayer compliance is affected by several factors, including the performance of tax officers, and the satisfaction of taxpayers.

II.6.1 The Influence of Tax Officers’ Service on Taxpayers’ Compliance

According to Risnawati and Suhayati (2009), the Directorate General of

Taxation must improve tax services to provide convenience for the taxpayer in

fulfilling its tax obligations as well as in order to achieve the government's goal for the

development of a nation.

According to Gardina and Haryanto (2006) in Supriyati and Hidayati (2008), the

causes of low tax compliance can be caused by the poor quality of service performed

by the tax officers. Based on the Self-Assessment System, the taxpayer is given full

16 trust to pay its taxes by calculating, paying, and reporting the tax liabilities. In order for the Self-Assessment system to be practiced by the taxpayer properly, the DGT must perform one of its functions namely the service function.

II.6.2 The Influence of Taxpayers’ Satisfaction on Taxpayers’ Compliance

Taxpayer satisfaction is a situation where taxpayers’ desires, hopes, and needs are met. Rahmianto (2003) stated that in measuring the level of taxpayers’ satisfaction, we could use variables, such as; the procedure is not difficult and easy to understand, simple terms, reasonable tax rates, security, and services provided in accordance with the service expected by the taxpayers.

Achieving high level of taxpayer compliance is not an easy matter. The DGT should continue to improve the performance of the tax authorities in order to increase the level of taxpayers’ satisfaction. This indicates that satisfactory performance is not only a requirement for private sector organizations, but also a requirement for public organizations.

II.6.3 The Influence of Tax Officers’ Service and Taxpayers’ Satisfaction simultaneously on Taxpayers’ Compliance

According to Prabawa (2012), Improved quality of service is expected to increase the satisfaction of the taxpayer as a customer which aims to improve the taxpayer compliance. Improving the tax service and taxpayer satisfaction is expected to influence taxpayer compliance in paying its tax obligations.

Based on the explanation above, the research paradigm in this research is as follows:

17 Figure II.1 Research Paradigm

Tax Officers’ Service Tax Officers’ Compliance

Taxpayers’ Satisfaction

II.7 Formulating Research Hypothesis

According to Sugiyono (2012), hypothesis is a temporary answer to the formulation of research problems where the formulation of research problems has been expressed in the form of questions. The hypothesis is said to be temporary because the answers given are based on the new theory.

Based on the explanation above and the formulation of problems from the previous chapter, the hypotheses of this research can be formulated as follows:

H1: Tax officers’ service has a significant influence on taxpayers’ compliance.

H2: Taxpayers’ satisfaction has a significant influence on taxpayers’ compliance.

H3: Tax officers’ service and taxpayers’ satisfaction simultaneously have a

significant influence on taxpayers’ compliance.

18 CHAPTER III

RESEARCH METHODOLOGY

III.1 Research Method

The method used in this research is quantitative method. Quantitative approach is used to gather data for the purpose of analyzing quantity and numbers, and deriving meaning and understanding from these. This method is useful at providing an understanding of what phenomenon are occurring. They also lend themselves to a deductive research approach, which means that they begin by taking existing theories and testing them in a top-down approach to research.

The objects observed in this research are tax officers’ service, taxpayers’ satisfaction, and taxpayers’ compliance. Researcher used questionnaires in conducting this research. The questionnaires will be given to the taxpayer in KPP Pratama Cikarang

Selatan.

This research analyzes three variables, consisting of one dependent variable and

two independent variables.

III.1.1 Dependent Variable

The dependent variable in this research is taxpayers’ compliance. Taxpayer

compliance is a situation where the taxpayer fulfills all its tax obligations and obtains

the right of taxation.

19 III.1.2 Independent Variable

The independent variables in this research are tax officers’ service and

taxpayers’ satisfaction. The assessment of the influence of independent variables on

the taxpayers’ compliance derived from the response given by the taxpayers on the

questionnaire.

III.2 Operational Definition

Common language is characterized by ambiguities as well as multiple definitions of some words. Therefore, variables used in the study need to be defined as to how they are to be observed and measured. This is known as operational definition

McGuigan (1987). McGuigan identified two functions of operationally defining variables. These are: (1) to clarify the phenomenon under investigation and (2) to communicate with each other in an unambiguous manner. Operational definition provides feasibility of carrying out the research activities intended for the study.

III.2.1 Tax Officers’ Service

In measuring the tax officers’ service, this research used the SERVQUAL

instruments (Zeithaml, Parasuraman, and Berry, 1990). There are five dimensions used

in the instruments to evaluate service quality. The five SERVQUAL dimensions are:

1. Tangible

It is a range of facilities that can be seen and used the tax office in an

effort to meet the satisfaction of the taxpayer. These variables include the

service procedure in filling and submission of Tax Return, and facilities and

infrastructure at the tax office.

2. Reliability

20 It is the reliability of tax officers in serving the taxpayer in accordance

with the promised services, and the reliability of the system to support the

services.

3. Responsiveness

This variable is intended as a gesture of tax officers who are able to

listen and respond to the taxpayer or the tax officer’s ability to assist and provide

services quickly and accurately.

4. Assurance

These are skills and knowledge needed to be able to provide services

with courtesy, respect, professionalism, and honesty from the tax officer.

5. Empathy

This is a concern given by the tax officer to the taxpayer in an effort to

understand the will and desire of the taxpayer.

III.2.2 Taxpayer’s Satisfaction

To measure the taxpayer’s satisfaction, this research used the variables used by

Rahmianto (2003). The variables include; procedure, requirement, security, and service.

1. Procedure

Procedures have an important role in an organization. If done correctly,

the procedure will benefit the tax office. When written correctly and clearly,

they can help systems and officers to function better. The procedure in question

is a concise procedure, accurate, easy to read and can be understood by the

taxpayer.

2. Requirement

21 The clear requirement in question is the documents required from the

taxpayer to take care of their tax obligations. These documents should be easily

prepared and fulfilled by the taxpayer.

3. Security

It is an effort in providing security and comfort for taxpayer, such as

ensuring environmental safety or the services provided. This is because the

sense of safety will make taxpayer feel comfortable when taking care of their

obligations.

4. Service

The service in question is a service provided at the tax office by tax

officers. Service expected by the taxpayer is a service that can give satisfaction

to the taxpayer.

III.2.3 Taxpayer’s Compliance

To measure tax compliance, this research will look at how the taxpayer has fulfilled their tax obligations. In order to provide fairness in taxation and the balance between the obligations of citizens and the rights of citizens who pay taxes, the Tax

Law, the Law on General Provisions and Tax Procedures, states that the obligation of citizens who pay taxes are as following:

1. Obligation to register as a taxpayer

According to the Self-Assessment System, taxpayer have an obligation

to register at the tax office in accordance with the taxpayer's residence area to be

given a Taxpayer Identification Number.

2. Obligation to pay taxes

22 Taxpayer (individual or entity) in implementing tax obligations must

comply with the Self-Assessment System, which is required to perform his/her

own calculation, payment, and reporting of tax payable.

3. Obligation to correctly fill the Tax Return

This is because tax collection in Indonesia is conducted by implementing

the principles of Self-Assessment System whereby taxpayer are responsible for

counting, calculating, paying the correct amount of tax on set dates, and self-

reporting their own taxes. The Self-Assessment gives the taxpayer greater

control and responsibility over their tax affairs.

4. Obligation to timely submit the Tax Return

As specified in the Tax Law, Tax Return has a function as a means for

the taxpayer to report and account for calculating the amount of tax payable. In

addition, the Tax Return serves to report the payment of taxes, and reported

assets and liabilities. Therefore, the Tax Return has an important meaning for

both the taxpayer and the tax officials.

5. Obligation to cooperate when a tax inspection occurs

Tax inspection is a series of activities to collect and process data,

information, and evidence objectively and professionally in order to know the

extent of taxpayer compliance or for other purposes in order to implement the

tax laws and regulations. Therefore, each taxpayer is obliged to cooperate when

examined by the tax officer.

For the measurement of variables, this study used the instruments that have been used by previous researchers (Ardananto, 2003, Nature, 2003, Hidayat, 2004) with the explanation as shown in the table below.

Table III.1 Measurement of Variables

23 Variable Indicator Scale No. of Statement Tax Officers’ a. Tangible - the physical appearance of the Tax Interval 1 Service Services Office. b. Tangible - the ease of obtaining and 2-3 understanding the forms required to report the Tax Return. c. Reliability - the ease in understanding tax 4 information provided by tax officer. d. Reliability - the quality of tax information provided by the tax officer. 5 e. Responsiveness - the attitude of tax officer in responding to the problems faced by taxpayer in taking care of their tax obligations. 6 f. Responsiveness - the speed and accuracy of service performed by the officer. 7 g. Assurance - the tax officer’s understanding of tax regulations and skills in performing his/her 8 duties. h. Assurance - the courtesy and hospitality in providing service. 9 i. Empathy - the ability to communicate well with the taxpayer. 10 j. Empathy - the caring attitude toward problems and complaints delivered by the taxpayer. 11 Taxpayers’ a. Procedure - the ease of procedure in reporting Interval 12 Satisfaction the Tax Return. b. Procedure - the clarity of procedure informed 13 by tax officer in reporting the Tax Return. c. Requirement - the ease in fulfilling the requirement to take care of the tax obligations. 14 d. Requirement - the clarity of information provided by the tax officer regarding the requirement to take care of tax obligations. 15 e. Security - the security at the tax office. 16 f. Security - the security of personal data of the 17

24 taxpayer. g. Service - the ease of service. 18 h. Service - taxpayer’s satisfaction. 19 i. Service - the implementation of working hours 20 in providing tax service. Taxpayers’ a. Registering - the awareness to register as a Interval 21 Compliance taxpayer. b. Counting - the honesty and accuracy in 22 calculating taxes. c. Paying - the punctuality in paying taxes. 23 d. Reporting - the punctuality in reporting the 24 Tax Return. e. Paying - the compliance in paying tax arrears. 25 f. Cooperating - the willingness of the taxpayer to cooperate when examined by the tax officer 26

III.3 Population and Sample

III.3.1 Population

Population is a generalization region consisting of subject and object that has

certain qualities and characteristics established by researchers to learn and then drawn

conclusions (Sugiyono, 2005).

Based on the above explanation, population used in this research is the population of Individual Taxpayers in KPP Pratama Cikarang Selatan.

III.3.2 Sample

Sample is part of the number and characteristics possessed by population

(Sugiyono, 2005). Based on the information from tax officer in charge, the total

Individual Taxpayers in 2016 is 96,878 taxpayers. To determine the amount of sample,

Slovin method used in this research (1999) with the following formulation:

25 N n = 1  Ne 2

Remarks:

n: the number of samples needed

N: total population

e: error tolerance

Furthermore, by distributing the number of population into the formula above, the sample results obtained are as follows:

N n = 1  Ne 2

n = 96,878 + 96,878 (0.1)2

n = 96,878 /968.78

n = 100

Based on the formula above, the samples that can be used in this research are

100 respondents with an error tolerance level 10 %. The sampling technique used in

this research is simple random sampling.

According Kerlinger (2006), simple random sampling is a method of withdrawal

from a population or universe in a way so that each member of the population or the

universe had the same opportunity to be selected or taken. Each individual is chosen

entirely by chance and has an equal chance of being included in the sample.

III.4 Data Collection Methods

Data used in this research are the data obtained from primary data and secondary data. Primary data is research that is obtained through investigation, while the secondary data is research that is available and obtained from other sources.

26 III.4.1 Primary Data

The primary data in this research is the data obtained from the questionnaires

filled out by the taxpayer in the tax office.

III.4.2 Secondary Data

The secondary data in this research is the data obtained from reading and

understanding reference books, tax laws, notes, articles, magazines, and other sources

related to the issues discussed.

III.5 Data Analysis

This research used multiple linear regression model to analyze the data. The hypothesis of this research was examined by using multiple linear regression models with the aid of statistical package software for social science (SPSS). In this study, multiple linear regression analysis is used to prove the extent to which the relationship of tax officers' service and taxpayer satisfaction on taxpayers' compliance. This analysis was used by involving two independent variables and one dependent variable. The regression equation was as follows:

Y = a + β1X1 + β2X2 + e

Remarks:

Y = taxpayers' compliance

a = constant

β1,β2 = regression coefficient

X1 = tax officers' service

X2 = taxpayers' satisfaction

e = error.

27 According to Riduan (2010), each variable will be elaborated in the form of questions and using a score system with categories used by Likert scale in which respondents were asked to answer a question with an answer value as described below.

a. Very Good / Strongly Agree / Very high rated 5

b. Good / Agree / High rated 4

c. Neutral / Less Agree / rated 3

d. Disagree / Low rated 2

e. Strongly Disagree / Very Low rated 1

III.5.1 Descriptive Statistic

Descriptive statistic analysis is used to describe the characteristic or

phenomena of data being used in a research. Descriptive statistic is more related with

collecting and summarizing data, along with the presentation of data. Descriptive

analysis will show the mean, median, maximum, minimum, and standard deviation

from each variable (Siagian, 2006).

III.5.2 Validity and Reliability Test

Warwick and Lininger (1975) point out that there are two basic goals in

questionnaire design. First, is to obtain information relevant to the purposes of the

survey. Second, is to collect this information with maximal reliability and validity.

a. Validity

According to Ghozali (2005), a questionnaire considered valid if the

questions in the questionnaire were able to reveal something that will be

measured by the questionnaire. The test is performed by comparing the value of

r count and r table for degree of freedom (df) = n - 2, in this case n is the number

of samples. If r count> r table the questions in the questionnaire considered

valid. 28 b. Reliability

Reliability testing is done by calculating the value of coefficient

Cronbach's alpha (α) for each questionnaire to be tested. A variable is said to be

reliable if the value of coefficient Cronbach's alpha (α) of more than 0.60

(Ghozali, 2005).

III.5.3 Classical Assumption Test

III.5.3.1 Normality Test

According to Ghozali (2005), normality test aims to test whether a

regression model or residual confounding variable has a normal distribution. As

it is known that the t-test and F assumes that, the value of the residual follows a

normal distribution. If this assumption is violated, the statistic test becomes not

valid for small sample sizes. There are two ways to detect whether residuals are

normally distributed or not is by the graph analysis and statistic test. This

research uses the statistic test to verify the normality of the data.

This research uses the normality test with a non-parametric statistical test

Kolmogorov-Smirnov (K-S). The K-S test is done by making hypothesis:

If H0: Significant values < 0.05, then the data is not normally distributed

If Ha: Significant values > 0.05, then the data is normally distributed

III.5.3.2 Heteroscedasticity Test

According to Ghozali (2005), the heteroscedasticity test aims to test

whether in the regression model there is a residual inequality of variant from one

observation to another. If the variant of the residual one observation to another

observation remains, then it is called homoscedasticity and if different is called

heteroskedasticity.

29 The heteroscedasticity test used in this study is the Glejser Test. The

Glejser test attempts to determine whether as the independent variable increases

in size, the variance of the observed dependent variable increases. This is done

by regressing the error term of the predicted model against the independent

variables. A high t-statistic (or low PROB-VALUE) for the estimated coefficient

of the independent variable(s) would indicate the presence of heteroskedasticity.

III.5.3.3 Multicollinearity Test

According to Ghozali (2011), multicollinearity test aims to test whether

the regression model found a correlation between independent variables.

Multicollinearity test can be done by looking at the VIF value of each

independent variable. If the VIF value <10, then it can be concluded that the

data is free from multicollinearity symptoms.

III.5.4 Hypothesis Test

To test the hypothesis of this study conducted by the significance test provided that if the value of t (arithmetic) significantly < α (alpha) 0.05; H0 is rejected and Ha is accepted. In other words, there is an influence of independent variables on the dependent variable, and vice versa if t (arithmetic) significantly > α (alpha) 0.05; H0 is accepted and Ha is rejected. In other words, there is no influence of independent variables on the dependent variable (Singgih, 2003). The process of computation is as follows:

III.5.4.1 t-Test

The t-test is hypothesis testing variable X to variable Y partially or one

by one, with the following formula:

30 Remarks:

t = Value t

r = coefficient of correlation

n = number of samples

The testing criteria are as follows:

1. t hit > t table significant

2. t hit < t table not signicant

Significance test (coefficient) regression, where:

Significance test (coefficient) simple correlation:

III.5.4.2 F Test

Test F is testing the hypothesis of variable X to variable Y simultaneously or collectively, with the formula of Sugiono (2003) is as follows:

Remarks:

R2 = Double correlation coefficient found

k = Number of independent variables

n = Number of samples

31 F = F sig is then compared with α = 0.05

The test criteria are as follows:

1. F sig > 0.05 means that there is no significant influence between tax officers’

service and taxpayers’ satisfaction on taxpayers’ compliance.

2. F sig < 0.05 means that there is a significant influence between tax officers’

service and taxpayers’ satisfaction on taxpayers’ compliance.

III.5.4.3 Coefficient of Determination Test

This analysis was conducted to measure how far the model's ability to explain variations in the dependent variable. Coefficient of determination is between zero and one.

1) Small value of R² means the ability of independent variables in explaining

the dependent variable is very limited.

2) A value close to one significant independent variable provides almost all the

information needed to predict the dependent variable (Ghozali, 2005).

32 CHAPTER IV

RESEARCH FINDINGS AND DISCUSSION

IV.1 Descriptive Statistics Analysis

Descriptive statistics are used to describe the basic features of the data in a research. They provide simple summaries about the sample and the measures. The purpose of descriptive analysis is to explain and describe the various characteristics of the respondents based on education, occupation, number of dependents, and other matters relating to this research. The Descriptive analysis will be presented by using frequency analysis method.

IV.1.1 Characteristics of Respondents

This research was conducted in July 2017. The number of respondents is 100

Taxpayers. The following is the characteristics of the respondents who had been

obtained from the results of the research shown in the form of frequency.

1) Education

From the total 100 respondents who have participated in this research, 24 taxpayers

are high school graduates, 11 taxpayers have associate degrees, 61 taxpayers have 33 bachelor’s degrees, and four taxpayers have master’s degrees. The conclusion is the majority of respondents has bachelor degree with a percentage of 61% then followed by high school graduate, associate degree, and master degree.

The following will be presented the level of education respondents in table IV.1

Table IV.1 Education Level of Respondents

Education Frequency High School 24 Diploma 3 11 Bachelor’s Degree 61 Master’s Degree 4 Source: Data Processed in 2017

2) Occupation

From the total 100 respondents who participated in the research, 83 taxpayers are private employees, four taxpayers are public employees, three taxpayers are entrepreneurs, and 10 taxpayers have jobs other than the option listed. The conclusion is the majority of respondents is private employee with a percentage of 83% then followed by other occupation, government employee, and entrepreneur.

The following will be presented the occupation of respondents in table IV.2

Table IV.2 Occupation of Respondents Occupation Frequency Private Employee 83 Civil Servant 4 Entrepreneur 3

34 Others 10 Source: Data Processed in 2017

3) Number of Dependents

From the total 100 respondents who participated in the research, 17 taxpayers

have zero dependent, 37 taxpayers have one dependent, 22 taxpayers have two

dependents, 18 taxpayers have three dependents, two taxpayers have four dependents,

and four taxpayers have four dependents. The conclusion is the majority of

respondents has one dependent then followed by two dependents, three dependents,

zero dependent, five dependents, and four dependents.

The following will be presented the number of dependents in Table IV.3

Table IV.3 Number of Dependents Number of Dependents Frequency 0 17 1 37 2 22 3 18 4 2 5 4 Source: Data Processed in 2017

IV.2 Validity and Reliability Tests

Validity test is done to indicate the extent to which a measuring instrument is able to measure what will be measured; while the reliability aims to determine the extent to which the measurement results remain consistent when measured two or more times against each research variable with the same measuring instrument (Siregar,

2012). 35 The validity test is done by using correlation coefficient technique between score item/statement with total score through test by comparing the value of Corrected

Item-Total Correlation (r count) each item of the questionnaire statement with r table value (0,05; n/2). If the result of r count is greater than r table, then the item of statement is valid. Meanwhile, the reliability test is conducted by comparing Cronbach’s

Alpha (r count) with r table value 0.05 (n-2). If the r count is bigger than r table value, then statement item is reliable or the instrument can be used as a data-gathering tool

(Sugiyono, 2010).

Table IV.4 Validity Test of Tax Officers’ Service

Statement Corrected Item-Total Information Correlation Statement 1 .262 Valid Statement 2 .377 Valid Statement 3 .389 Valid Statement 4 .387 Valid Statement 5 .525 Valid Statement 6 .550 Valid Statement 7 .433 Valid Statement 8 .627 Valid Statement 9 .671 Valid Statement10 .555 Valid Statement 11 .627 Valid Source: Data Processed in 2017

Based on the result in Table IV.4 presented above, it can be concluded that the instrument used is valid. For the data reliability test, the comparison between r (count) with r (table) will be used to determine the reliability of data. If r count is greater than r table then the instrument used in this research is reliable. The r count of the tax officer service as presented in table IV.5 below is 0.765.

Table IV.5 Reliability Test of Tax Officers’ Service 36 Reliability Statistics Cronbach's Alpha N of Items .765 11 Source: Data Processed in 2017

Because r count (0.765) is greater than r table (0.197), then the instrument used in this research is reliable. Thus, it can be concluded that the research instrument used is valid and reliable.

Table IV.6 Validity Test of Taxpayers’ Satisfaction

Statement Corrected Item-Total Information Correlation Statement 12 .364 Valid Statement 13 .344 Valid Statement 14 .574 Valid Statement 15 .569 Valid Statement 16 .538 Valid Statement 17 .572 Valid Statement 18 .550 Valid Statement 19 .491 Valid Statement 20 .453 Valid Source: Data Processed in 2017

Based on the result in Table IV.6 presented above, it can be concluded that that the instrument used is valid. For the reliability test, the comparison between r (count) with r (table) will be used to determine the reliability of data. If r count is greater than r table then the instrument used in this research is reliable. The r count of the tax officer service as presented in table IV.7 below is 0.773.

Table IV.7 Reliability Test of Taxpayers’ Satisfaction

Reliability Statistics Cronbach's Alpha N of Items

37 .773 9 Source: Data Processed in 2017

Because r count (0.773) is greater than r table (0.197), then the instrument used in this research is reliable. Thus, it can be concluded that the research instrument used is valid and reliable.

Table IV.8 Validity Test of Taxpayers’ Compliance

Statement Corrected Item-Total Information Correlation Statement 21 .484 Valid Statement 22 .670 Valid Statement 23 .649 Valid Statement 24 .670 Valid Statement 25 .644 Valid Statement 26 .670 Valid Source: Data Processed in 2017

Based on the result in Table IV.8 presented above, it can be concluded that the instrument used is valid. For the reliability test, the comparison between r (count) with r

(table) will be used to determine the reliability of data. If r count is greater than r table then the instrument used in this research is reliable. The r count of the taxpayers’ compliance as presented in table IV.9 below is 0.774.

Table IV.9 Reliability Test of Taxpayers’ Compliance

Reliability Statistics Cronbach's Alpha N of Items .774 6 Source: Data Processed in 2017

38 Because r count (0.774) is greater than r table (0.197), then the instrument used in this research is reliable. Thus, it can be concluded that the research instrument used is valid and reliable.

IV.3 Analysis of Research Variables

Analysis of research variables aimed to explain the results of questionnaires that have been filled by the taxpayers. The results of the calculation of each variable will be presented in tabular form. The information from the questionnaire that has been filled by the taxpayers is the source used to know the score that has been achieved from each statement and to perform descriptive analysis.

Responses given by the respondents on each statement in the questionnaire will be given a score. The assessment is as follows: Strongly Disagree (SD) will be given a score of 1, Disagree (D) will be given a score of 2, Undecided (U) will be given score 3,

Agree (A) will be given score 4, and Strongly Agree (SA) will be given a score of 5.

Assessment of each statement in the questionnaire will be categorized based on the total score from each of the statement with the following categories:

Table IV.10 Questionnaire Assessment Criteria Score Range Category 100 – 180 Poor 181 – 260 Fair 261 – 340 Good 341 – 420 Very Good 421 – 500 Excellent

39 IV.3.1 Tax Officers’ Service in KPP Pratama Cikarang Selatan

The results of research on the tax officers’ service in KPP Pratama Cikarang

Selatan can be seen from the taxpayers’ assessment of the statements contained in the questionnaire as presented in Table IV.11 below.

Table IV.11 Assessment of Tax Officers’ Service

No Statement SD D U A SA Total Category Score 1. The tax service office is clean and - 3 21 21 55 428 Excellent comfortable. 2. The form required to report the Tax Return - - 1 82 17 416 Very Good is easy to obtain. 3. The form required to report the Tax Return - - 29 68 3 374 Very Good is easy to understand. 4. The tax officer provides tax-related - - 20 80 - 380 Very Good information clearly and understandably. 5. The tax officer provides reliable information. - - - 92 8 408 Very Good 6. The tax officer responds quickly to the - - 7 86 7 400 Very Good difficulties/complaints delivered by the taxpayer. 7. The speed and accuracy of the tax officer in - 9 35 50 6 353 Very Good performing tax service are good. 8. The tax officer understands the tax laws and - - - 91 9 409 Very Good is skilled in his/her duties. 9. The tax officer behaves politely and kindly - - 8 84 8 400 Very Good in serving the taxpayer. 10. The tax officer is able to communicate well - - 3 91 6 403 Very Good in providing tax service. 11. The tax officer pays attention to the - - 5 91 4 399 Very Good

complaints of taxpayer and trying to find the

right solution.

Source: Data Processed in 2017

40 IV.3.2 Taxpayers’ Satisfaction in KPP Pratama Cikarang Selatan

The results of research on the taxpayers’ satisfaction in KPP Pratama Cikarang

Selatan can be seen from the taxpayers’ assessment of the statements contained in the questionnaire as presented in Table IV.12 below.

Table IV.12 Assessment of Taxpayers’ Satisfaction

No Statement SD D U A SA Total Category Score 12. The procedure for submitting the Tax Return - 1 23 71 5 380 Very Good is easy to understand. 13. The tax officer provides a good explanation - - 10 89 1 391 Very Good regarding the filling and submission of the Tax Return. 14. The documents required to administer the - - 3 90 7 404 Very Good tax obligations can be easily fulfilled by the taxpayer. 15. The requirements required to administer tax - - 5 80 15 410 Very Good obligations are clearly communicated by the tax officer. 16. The taxpayer feels safe while in the tax - 1 1 81 17 414 Very Good office. 17. The taxpayers feel secure and believe that - - 1 90 9 408 Very Good the data given in the Tax Return will be kept confidential. 18. The taxpayer can easily contact the tax - - 7 88 5 398 Very Good officer to obtain tax service. 19. The taxpayer is satisfied with the tax service 2 5 10 79 4 378 Very Good provided by the tax officer. 20. The implementation of working hours in 1 8 31 54 6 356 Very Good providing tax service is on time. Source: Data Processed in 2017

41 IV.3.3 Taxpayers’ Compliance in KPP Pratama Cikarang Selatan

The results of research on the taxpayers’ compliance in KPP Pratama Cikarang

Selatan can be seen from the taxpayers’ assessment of the statements contained in the questionnaire as presented in Table IV.13 below.

Table IV.13 Assessment of Taxpayers’ Compliance

No Statement SD D U A SA Total Category Score 21. The taxpayer enrolls as a taxpayer to fulfill - - 20 52 28 408 Very Good his/her obligations as a good citizen. 22. The taxpayer always calculates the tax - - - 94 6 406 Very Good payable correctly and honestly. 23. The taxpayer always pays tax before - - 18 69 13 395 Very Good maturity. 24. The taxpayer always reports the Tax Return - - - 94 6 406 Very Good before maturity 25. The taxpayer is always submissive in paying - 8 29 50 13 368 Very Good

tax arrears (if here are tax arrears).

26. The taxpayer is willing to cooperate and - - - 94 6 406 Very Good provide necessary data when being examined by the tax officer Source: Data Processed in 2017

42 IV.4 Classical Assumption Test

IV.4.1 Normality Tests

The purpose of the normality test is to find out whether the distribution of a

data follows or approximates the normal distribution, namely the distribution of data

with the bell shape. A good data to use is data that has a normal distribution pattern.

Calculation of normality test using SPSS program can be performed by conducting

One-Sample Kolmogrov-Smirnov test. The test done is by comparing probability (sig)

with alpha value (a). If the probability (sig) is more than the alpha value (a), then the

data is normally distributed. The hypothesis testing of normality test using One-

Sample Kolmogrov-Smirnov is as follows:

If H0: Significant values < 0.05, then the data is not normally distributed

If Ha: Significant values > 0.05, then the data is normally distributed

Based on the result shown in Table IV.14, the probability value (sig) of 0.187 is

greater than the alpha value (0.05). Therefore, it can be concluded that the data is

normally distributed or close to normal.

Table IV.14 One-Sample Kolmogorov-Smirnov Test

One-Sample Kolmogorov-Smirnov Unstandardized Residual N 100 Normal Parametersa Mean .0000000 Std. Deviation 1.16035125 Most Extreme Absolute .109 Differences Positive .093 Negative -.109

43 Kolmogorov-Smirnov Z 1.089 Asymp. Sig. (2-tailed) .187 Source: Data Processed in 2017

IV.4.2 Heteroscedasticity Tests

Based on the result shown in Table IV.15, the significant values of tax officers’ service and taxpayers’ satisfaction variables are (0.475 and 0.757) greater than 0.05.

Therefore, it can be concluded there is no heteroscedasticity symptoms.

Table IV.15 Glejser Test

Coefficientsa Model Unstandardized Coefficients Standardized T Sig. Coefficients B Std. Error Beta 1 (Constant) -1.723 1.168 -1.476 .143 SERV .042 .059 .158 .717 .475 SATIS .020 0.66 .068 .310 .757 a. Dependent Variable: Taxpayers’ Compliance Source: Data Processed in 2017 IV.4.3 Multicollinearity Test

Based on the result shown in Table IV.16, the VIF (4.994) value of the independent variables is smaller than 10. Because 4.994 < 10, then it can be concluded that the data is free from multicollinearity symptoms.

Table IV.16 Multicollinearity Test

Coefficientsa Model Unstandardized Standardized T Sig. Collinearity Coefficients Coefficients Statistics B Std. Beta Tolerance VIF Error 1 (Constant) -2.440 1.775 -1.375 .172 SERV .370 .090 .506 4.110 .000 .202 4.994 SATIS .287 .100 .354 2.877 .005 .202 4.994 a. Dependent Variable: Taxpayers’ Compliance Source: Data Processed in 2017 44 IV.5 Hypothesis Testing

IV.5.1 t-Test

Based on the result shown in Table IV.17, the significant values of tax officers’

service and taxpayers’ satisfaction (4.110 and 2.877) are and greater than t table

(1.984). Therefore, the hypothesis is accepted. It means there is a positive and

significant influence of the tax officers’ service and taxpayers’ satisfaction on

taxpayers’ compliance.

Table IV.17 t-Test

Coefficientsa Model Unstandardized Coefficients Standardized T Sig. Coefficients B Std. Error Beta 1 (Constant) -2.440 1.775 -1.375 .172 SERV .370 .090 .506 4.110 .000 SATIS .287 .100 .354 2.877 .005 a. Dependent Variable: Taxpayers’ Compliance Source: Data Processed in 2017

IV.5.2 F Test

Based on the result shown in Table IV.18, the hypothesis tested is the tax

officers' service and taxpayers' satisfaction on taxpayers' compliance. The value of F

count (114.430) is greater than the F table (3.09) and the significant value (0.000) is

smaller than 0.05. Therefore, H3 is accepted. This indicates that the tax officers'

service and taxpayers' satisfaction simultaneously have a positive and significant to

taxpayers' compliance. It means that the higher the quality of tax officers' service

performed and the level of taxpayers' satisfaction, the higher the taxpayers'

compliance. 45 Table IV.18 F Test

ANNOVAb Model Sum of df Mean F Sig Squares Square 1 Regression 314.495 2 157.247 114.430 .000 a Residual 133.295 97 1.374 Total 447.790 99 a. Predictors: (Constant), SERV, SATIS b. Dependent Variable: Taxpayers’ Compliance Source: Data Processed in 2017

IV.5.3 Coefficient of Determination Test

Based on the result shown in Table IV.19, the value of coefficient of

determination is expressed with the value of R-squared (0.702). It means 70.2% of

taxpayers’ compliance variable can be explained by the tax officer service and

taxpayers’ satisfaction variable. Alternatively, this statement can also be interpreted as

the ability of independent variables to influence the taxpayers’ compliance is equal to

70.2 % while the remaining (100% - 70.2%) of 29.8% is influenced by other factors

that are not included in this research.

Table IV.19 Coefficient of Determination Test

Model Summaryb Model R R Square Adjusted R Std. Error of the Square Estimate 1 .838a .702 .696 1.17225 a. Predictors: (Constant), SERV, SATIS b. Dependent Variable: Taxpayers’ Compliance Source: Data Processed in 2017

IV.6 Discussion

Based on the results of research that has been described previously, it can be proven that the variable of tax officers’ service and taxpayers’ compliance has a positive

46 and significant influence on taxpayers’ compliance. For more details will be discussed as follows.

IV.6.1 The Influence of Tax Officers’ Service on Taxpayers’ Compliance

The result of hypothesis testing has proved that the tax officers’ service has a

positive influence and significant on taxpayers’ compliance, where t count (4.110) is

bigger than t table (1.984) and its significance is 0,000 (smaller than 0.05). Therefore,

H1 is accepted. This result is also similar to the results of research conducted by Rajif

(2012), Kamil (2015), and Nurhayati, Halimatusadiah, and Diamonalisa (2015) where

the tax officers’ service has a positive and significant influence on the taxpayer

compliance. This indicates that the better the level of tax service provided by the tax

officer, the better the taxpayer compliance level will become.

Because the five SERVQUAL dimensions indicator measures of the services,

every tax officer is required to know and understand its function and role. This is

because the tax officers’ service has significant influence on taxpayers’ compliance.

This means that the better the service provided by the tax officer, the higher the level

of taxpayer compliance.

Based on the average score of five dimension of service measurement, the

responsiveness dimension has the lowest average score. The statement with the lowest

score is on statement number 7, which is about the speed and accuracy of officers in

providing tax service. This shows that the speed and accuracy of tax officials in

providing services is the most important factor for the taxpayers.

Meanwhile, the tangible dimension has the highest average score. The highest

score is on statement number 1, which is about the clean and comfortable environment

of the tax office. This indicates that KPP Pratama Cikarang Selatan has succeeded in

creating a comfortable environment in the tax office for the taxpayers. A comfortable

47 environment will provide a sense of comfort for taxpayers to take care of their tax obligations.

Compared to other indicators in the taxpayers’ compliance variable, the register indicator has the highest average score. The highest score is on statement number 21, which is about registering as a taxpayer to fulfill tax obligations as a good citizen. This shows that the taxpayer is aware of his/her tax obligations as a good citizen and as an individual who works and receiving income.

IV.6.2 The Influence of Taxpayers’ Satisfaction on Taxpayers’ Compliance

The result of hypothesis testing has proved that the taxpayers’ satisfaction has a positive influence and significant on taxpayers’ compliance, where t count (13.505) is greater than t table (1.984) and its significance is 0,000 (small from α / 2 0.05).

Therefore, H2 is accepted. This result is also similar to the result of research conducted by Setyawati (2010) where the taxpayer's satisfaction on the services provided has a positive and significant influence on the taxpayer's compliance.

Because the indicator of procedure, requirements, security, and service measures the taxpayers’ satisfaction, therefore the service obtained by taxpayers in the tax office has a great influence on taxpayer compliance. This means that the higher the level of taxpayer satisfaction, the higher level of taxpayer compliance will become. This statement is supported by the result of research conducted Marziana (2010)) which states that the taxpayer satisfaction would affect the willingness of the taxpayer to fulfill the tax obligations.

Compared to other indicators on taxpayers’ satisfaction variable, the service indicator has the lowest average score. The statement with the lowest score is on statement number 20, which is about the implementation of tax officers’ working hours in providing the service. This proves that the inaccuracy of tax officers’ working

48 hours in performing tax service will have a major influence on taxpayers’ satisfaction.

Taxpayers will assume that the service provided in the tax office is not satisfactory and even not as expected by the taxpayer. Therefore, it has become an obligation for the

KPP Pratama Cikarang Selatan to evaluate the performance of each employee to avoid the occurrence of errors and omissions in every taxation process in order to provide the best service to the taxpayers.

As a result, the tax payment indicator has the lowest average score compared to other indicators on taxpayers’ compliance variable. The lowest score is on statement number 25, which is about the payment of tax arrears. This shows that taxpayer discontentment of service provided by the tax office will have an influence on the taxpayers’ compliance.

The security indicator on the taxpayers’ satisfaction variable has the highest average score with the highest score is on statement number 16, which is about the sense of security when in the tax office. This proves that the tax office has succeeded in creating a safe atmosphere for the taxpayer and when taking care of their tax obligations.

IV.6.3 The Influence of Tax Officers’ Service and taxpayers’ Satisfaction

Simultaneously on Taxpayer Compliance.

From the results of the F test, it can be concluded that the tax officers' service and the taxpayer satisfaction simultaneously have a positive and significant influence on the taxpayers' compliance. F count (114.430) is greater than F table (3.09) or significant value (0.000) is greater than 0.05. All independent variables simultaneously have influence on taxpayers’ compliance. It means the higher the quality of services performed and the level of taxpayers’ satisfaction, the higher the level of taxpayers’ compliance.

49 CHAPTER V

CONCLUSIONS AND RECOMMENDATIONS

V.1 Conclusions

From the research findings in Chapter 4, it can be concluded that:

1. Tax officers’ service has a positive and significant influence on taxpayers’

compliance in KPP Pratama Cikarang Selatan.

2. Taxpayers’ satisfaction has a positive and significant influence on taxpayers’

compliance in KPP Pratama Cikarang Selatan.

50 3. Tax officers’ service and taxpayers’ satisfaction simultaneously have a positive

and significant influence on taxpayers’ compliance in KPP Pratama Cikarang

Selatan.

V.2 Recommendations

Based on the results of the analysis and the discussion above, suggestions for

KPP Pratama Cikarang Selatan and further research are as follows:

1. For KPP Pratama Cikarang Selatan

a. The responsiveness dimension on the tax officers’ service variable needs to

get more attention because it has the lowest average score of the five

dimensions, especially on the indicator of speed and accuracy of officers in

providing the service. KPP Pratama Cikarang Selatan can improve the tax

service by evaluating the daily performance of their employees. This

performance evaluation aims to improve individual performances. Another

attempt that can be taken is to provide training tailored to the needs of each

employee on a regular basis so that the performance of employees can be

improved so that the expected targets can be achieved. The next step that

can be performed is to reward employees who have done their job very well.

In addition to giving appreciation, this action can also motivate other

employees to work harder. These efforts aim to enable the tax officers to

provide prompt and appropriate service to the taxpayers.

b. Service indicator on the taxpayers’ satisfaction variable in KPP Pratama

Cikarang Selatan has the lowest average score, which is about the

inaccuracy of tax officer’s working hours in providing tax service. This

proved that the service received by the taxpayer did not meet the

expectations of the taxpayer. KPP Pratama Cikarang Selatan needs to 51 understand what kind of service the taxpayer expects. The best way to

understand the expectations of the taxpayer is to provide a complaint and

suggestion system, such as a suggestion box, comment card, critiques and

suggestions through the official website, or by calling a toll-free telephone

line. Tax officers may also direct the taxpayers to provide an assessment of

the service received at the time they have completed their tax obligations in

order to make the assessment results more effective. That way, the tax office

can find out how satisfied the taxpayer with the tax service provided and

understand the service expected by the taxpayer.

c. Tax payment indicator on the taxpayers’ compliance variable has the lowest

average score, which is about the payment of tax arrears. This proved that

taxpayer discontent would lead to the reluctance of the taxpayer to take care

of his/her tax obligations voluntarily. The tax laws serve as the basis for

compliance. Compliance is caused by the intervention or authority of the

government, due to pressures such as fines and sanctions. This causes the

taxpayers inevitably have to comply with the applicable regulations.

Therefore, KPP Pratama Cikarang Selatan needs to provide taxation

counseling to the taxpayers. The tax counseling aims to provide an

explanation to the community whose ultimate goal is the change of attitudes

of the taxpayer, from the attitude of disobedience turned into obedient in

paying taxes.

2. For further research

a. For further research development, it is suggested that the next researchers

can add other variables related to how to improve taxpayer compliance.

52 b. For further research development, it is advisable to use other analytical tools

to determine variations of other results.

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56 APPENDICES

APPENDIX 1 - LETTER OF PERMISSION TO DISTRIBUTE

QUESTIONNAIRES

A APPENDIX 2 - QUESTIONNAIRE

This questionnaire aims to identify the This questionnaire aims to identify the "Influence of Service of Tax Officers Against Taxpayer Satisfaction and Its Implication on Taxpayer Compliance." The information provided by the respondent will only be used for the purposes of thesis research.

I. RESPONDENT ID

Direction: please circle the most appropriate response.

1. Education : High School / Diploma 3/ Bachelor / Master / PhD

2. Occupation : Private Employee / Civil Servant / Entrepreneur / Others

3. Number of Dependents : …… Dependent/s

Direction: for each statement, please provide a check mark (√) to respond to the statement below with the following information:

SD : Strongly Disagree A : Agree

D : Disagree SA : Strongly Agree

U : Undecided

II. TAX OFFICERS’ SERVICE

NO STATEMENTS SD D U A SA 1. The tax service office is clean and comfortable 2. The form required to report the Tax Return is easy to obtain. 3. The form required to report the Tax Return is easy to understand. 4. The tax officer provides tax-related information clearly. 5. The tax officer provides reliable information. 6. The tax officer responds quickly to the difficulties/complaints delivered by the taxpayer. 7. The speed and accuracy of the tax officer in performing the service are good.

B 8. The tax officer understands the tax laws and is skilled in his/her duties. 9. The tax officer behaves politely and kindly in serving the taxpayer. 10 The tax officer is able to communicate well with the . taxpayer. 11. The tax officer pays attention to the complaints of taxpayer and trying to find the right solution. Source: Qodir (2008) with modification.

III. TAXPAYERS’ SATISFACTION

NO STATEMENTS SD D U A SA 12. The procedure for submitting the Tax Return is easy to understand. 13. The tax officer provides a good explanation regarding the filling and submission of the Tax Return. 14. The documents required to administer the tax obligations can be easily fulfilled by the taxpayer. 15. The requirements required to administer tax obligations are clearly communicated by the tax officer. 16. The taxpayer feels safe while in the tax office. 17. The taxpayers feel secure and believe that the data given in the Tax Return will be kept confidential. 18. The taxpayer can easily contact the tax officer to obtain tax service. 19. The taxpayer is satisfied with the tax service provided by the tax officer. 20. The implementation of working hours in providing tax service is on time. Source: Qodir (2008) with modification.

IV. TAXPAYERS’ COMPLIANCE

NO STATEMENT SD D U A SA 21. The taxpayer enrolls as a taxpayer to fulfill his/her obligations as a good citizen. 22. The taxpayer always calculates the tax payable correctly and honestly. 23. The taxpayer always pays tax before maturity. 24. The taxpayer always reports the Tax Return before maturity.

C 25. The taxpayer as a taxpayer is always submissive in paying tax arrears (if here are tax arrears). 26. The taxpayer is willing to cooperate and provide necessary data when being examined by the tax officer. Source: Rahmadian (2010) & Ningrum (2014).

THANK YOU FOR KINDLY PARTICIPATING IN THIS QUESTIONNAIRE

D APPENDIX 3 – DATA ANALYSIS (SPSS OUTPUT)

Reliability Statistics Cronbach's N of Items Alpha .765 11

Item-Total Statistics Scale Mean if Scale Corrected Cronbach's Item Deleted Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted Serv1 39.42 6.448 .262 .806 Serv2 39.54 7.483 .377 .752 Serv3 39.96 7.150 .389 .750 Serv4 39.90 7.444 .387 .750 Serv5 39.62 7.592 .525 .745 Serv6 39.70 7.202 .550 .735 Serv7 40.17 6.284 .433 .753 Serv8 39.61 7.392 .627 .736 Serv9 39.70 6.879 .671 .721 Serv10 39.67 7.456 .555 .740 Serv11 39.71 7.339 .627 .735

Reliability Statistics Cronbach's N of Items Alpha .773 9

Item-Total Statistics Scale Mean if Scale Corrected Cronbach's Item Deleted Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted Satis1 31.59 5.699 .364 .766 Satis2 31.48 6.252 .344 .766 Satis3 31.35 5.927 .574 .745 Satis4 31.29 5.541 .569 .736 Satis5 31.25 5.563 .538 .740 Satis6 31.31 5.953 .572 .746 Satis7 31.41 5.861 .550 .745 Satis8 31.61 4.927 .491 .752 Satis9 31.83 4.789 .453 .768

E Reliability Statistics Cronbach's N of Items Alpha .774 6

Item-Total Statistics Scale Mean if Scale Corrected Cronbach's Item Deleted Variance if Item-Total Alpha if Item Item Deleted Correlation Deleted Comp1 19.81 2.903 .484 .765 Comp2 19.83 3.839 .670 .746 Comp3 19.94 2.966 .649 .705 Comp4 19.83 3.839 .670 .746 Comp5 20.21 2.309 .644 .730 Comp6 19.83 3.839 .670 .746

NPar Tests

One-Sample Kolmogorov-Smirnov Test Unstandardized Residual N 100 Normal Parametersa Mean .0000000 Std. Deviation 1.16035125 Most Extreme Absolute .109 Differences Positive .093 Negative -.109 Kolmogorov-Smirnov Z 1.089 Asymp. Sig. (2-tailed) .187 a. Test distribution is Normal.

Glejser Tests

Coefficientsa Model Unstandardized Standardized t Sig. Coefficients Coefficients B Std. Error Beta 1 (Constant) -1.723 1.168 -1.476 .143 Tax Officers' Service .042 .059 .158 .717 .475 Taxpayers' Satisfaction .020 .066 .068 .310 .757 a. Dependent Variable: Taxpayers' Compliance

F Multiple Linear Regression

Model Summary Model R R Square Adjusted R Std. Error of the Square Estimate 1 .838a .702 .696 1.17225 a. Predictors: (Constant), Taxpayers' Satisfaction, Tax Officers' Service

ANOVAb Model Sum of df Mean Square F Sig. Squares 1 Regression 314.495 2 157.247 114.430 .000a Residual 133.295 97 1.374 Total 447.790 99 a. Predictors: (Constant), Taxpayers' Satisfaction, Tax Officers' Service b. Dependent Variable: Taxpayers' Compliance

Coefficientsa Model Unstandardized Standardized t Sig. Collinearity Coefficients Coefficients Statistics B Std. Beta Tolerance VIF Error 1 (Constant) -2.440 1.775 -1.375 .172 Tax Officers' .370 .090 .506 4.110 .000 .202 4.944 Service Taxpayers' .287 .100 .354 2.877 .005 .202 4.944 Satisfaction a. Dependent Variable: Taxpayers' Compliance

Coefficient Correlationsa Model Taxpayers' Tax Officers' Satisfaction Service 1 Correlations Taxpayers' 1.000 -.893 Satisfaction Tax Officers' Service -.893 1.000 Covariances Taxpayers' .010 -.008 Satisfaction Tax Officers' Service -.008 .008 a. Dependent Variable: Taxpayers' Compliance

G Collinearity Diagnosticsa Model Dimension Eigenvalue Condition Variance Proportions Index (Constant) Tax Taxpayers' Officers' Satisfaction Service 1 1 2.996 1.000 .00 .00 .00 2 .003 30.979 .92 .03 .08 3 .001 76.479 .08 .97 .92 a. Dependent Variable: Taxpayers' Compliance

H