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ABSTRACT
The objective of the study is to understand corporate taxpayer compliance based on effective tax rate and earnings management with cluster technique. The steps to achieve these goals are grouping companies using cluster analysis, to test the effect of earning management on effective tax rate for each group company, to analyze compliance corporate taxpayer for each group. Planned behavior theory is used to explain the behavior corporate taxpayer. This study examined 331 company listed in Bursa Efek Indonesia 2014. By using elbow obtained four clusters. Each cluster has a distinct resemblance to one another. The level of compliance of each cluster is determined based on the position in the diagram Cartesian. Cluster 4 consists of 267 corporate taxpayers is the only group that is categorized obedient, despite the level of compliance is low and from various industry sectors with asset levels are extremely varied.
JEL Classification: H20; M20.
Keywords: Corporate Tax; Compliance; Earnings Management.
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1.INTRODUCTION
The largest source of state revenue comes from taxes. These revenue are used to recurrent and development expenditure. Government and society are two parties involved in the process of taxation. The government's interest is to keep the economy running conducive. These conditions make the society, as well as taxpayers, have the economic ability to pay tax as determined by tax regulations. Unfortunately in an open economic system, global economic conditions affecting the domestic economy. So that when the global economy growth slowdown, it will affect the national economy. In this situation the government will have difficulty in raising funds from the tax, due to the impact of slowing economic growth was a decline in income taxpayers. Furthermore, their income tax burden is lowered and the tax revenue target of the government is not reached (Sumomba & Hutomo, 2012).
To solve this situation one of the actions that can be performed by the tax authorities is to issue policies that impact on improving taxpayer compliance . This policy can be issued with enforcement of taxation. For taxpayers who do not comply with the provisions of the tax will get penalized. Sanctions issued by the tax authorities is expected to increase in tax compliance. Furthermore, the number of taxpayers are expected to increase and the...