THE INFLUENCE OF TAX EDUCATION DURING HIGHER EDUCATION ON TAX KNOWLEDGE AND ITS EFFECT ON PERSONAL TAX COMPLIANCE

Abstract

Introduction/Main Objectives: This study has three objectives. First, to analyze whether tax education during higher education influences individual tax compliance through increased knowledge about taxation. Second, to explore the implementation of tax education in universities. Third, to identify the cooperation between universities and the Directorate General of Taxation in order to improve individuals’ tax compliance. The research method used in this study is a mixed-method. Background Problems: In previous studies the educational variables have been measured from the level of the education of the respondents (diploma, undergraduate, and postgraduate), not on the application of courses in tertiary institutions, so that they do not reflect if the respondents received any tax education. Research Method: The approach used in this mixed-method is a convergent parallel one. In a parallel convergent approach, the author collects each item of quantitative and qualitative data simultaneously, and then the data are analyzed. Findings/Results: The results of a survey of 100 students who regularly attend night classes held at the Politeknik Negeri Batam (Polibatam), who have fulfilled the requirements to be taxpayers, indicate that tax education has a significant effect on tax compliance. Then, the indirect effect of tax education through tax knowledge also significantly influences tax compliance. The results of quantitative research are also supported by the results of interviews with two students, two tax lecturers, and one employee of the Directorate General of Taxation. Conclusion: The results of this study are also in line with the social learning theory, where the environment influences cognition and behavior. From the theory, it can be concluded that tax education can increase tax knowledge and influence taxpayers’ compliance behavior.

Keywords

• tax education, tax knowledge, tax compliance, universities, directorate general of taxes