Antecedents of Ethical Perceptions of Tax Avoidance Based on Local Cultural Values and their Consequences on Tax Compliance
Keywords:
Ethical Perceptions of Tax Avoidance, Tri Kaya Parisuda's Ethical Values, Tax ComplianceAbstract
The phenomenon of tax avoidance in Indonesia still occurs, this can be seen from the indicator of the tax ratio in Indonesia which is still low. This research investigates the ethical perception factor of tax avoidance. The survey was conducted using a snowballing technique involving individual taxpayers who have business activities in Denpasar City. To test the proposed hypothesis, the study used the SEM-PLS method with the help of SmartPLS 3.2.9 software. The results of the study show that ethical perceptions of taxpayer avoidance can be minimized or reduced by increasing understanding of ethical values based on Tri Kaya Parisuda. Furthermore, this relationship will confirm other findings, namely that high taxpayer compliance can be increased in line with the lower level of understanding of ethical perceptions of tax avoidance.
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