Understanding the Concept of Trust in Tax Authorities
Trust in tax institutions is important, where taxes are a source of state revenue used for development. Trust in the fiscus affects the compliance of MSME taxpayers. Cases of tax evasion, such as: the case of Gaius Tambunan have caused an opinion in the public that the tax payments made by taxpayers so far have only been used by certain individuals. Therefore, the low level of tax compliance is not only due to lack of knowledge and less appropriate tax rates, but also because the level of compulsory trust of pajak begins to decline. The high level of corruption in Indonesia, especially the abuse of power by tax parties/institutions, makes people feel distrustful and reluctant and indifferent in paying taxes. One of the factors influencing taxpayer compliance is trust in the authority/fiscus. What is trust in fiscus/authority?
The definition of trust according to experts is as follows: Maharani (2010) Trust is one party’s belief in the reliability, durability, and integrity of the other party in the relationship and the belief that his actions are in the best interest and will produce positive results for the trusted party. Lau and Lee (1999) define trust as a person’s willingness to depend on others with certain risks. Doney and Canon in Aydin and Ozer (2005) stated that trust is a process of calculating (calculative process) between the costs incurred and the results obtained. According to Siagian and Cahyono (2014) trust is a belief from one party regarding the intentions and behaviors directed at the other party, thus consumer trust is defined as a consumer expectation that the service provider can be trusted or relied on in fulfilling its promises. According to Gunawan (2013) trust is defined as a form of attitude that shows feelings of liking and staying afloat to use a product or brand.
Based on the fundamental social dilemma concept Lind (2001) states that community members face a dilemma when deciding their level of involvement in social membership. Trust in the tax authorities can be interpreted as the trust given to the Directorate General of Taxes by taxpayers in fulfilling their tax obligations.
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