Uncovering the Potential of Local Tax Fraud in Indonesian Restaurants

Authors

  • Tarjo, Moh Toyyib, Mohammad Nizarul Alim, Prasetyono, Alexander Anggono, Muhammad Syam Kusufi, Muhammad Alkirom Wildan

Abstract

This study aims at reveal the meaning of taxpayer fraud in making local tax payments by restaurant x in Indonesia. This study uses a qualitative approach with the phenomenological method. Data obtained through observation and unstructured interviews. The Research shows that the unwillingness to pay taxes stems from the interest of the owner as of the owner to the director as field executor to pay a small tax burden. The remainder of the tax is used to support other restaurant needs. It begins with this irrelevance that a taxpayer takes a legally justified way or breaks the law to avoid taxes. The sensation of paying taxes is very different because the sense of the benefits of paying taxes is not felt directly by the taxpayer. This paper contributes to the tax accounting literature and is useful for reducing tax avoidance practices at the local government level. There appears to be no prior literature in tax accounting that explores restaurant tax avoidance. Moreover, although tax avoidance has been the subject of several previous papers in tax accounting, the importance of the meaning of fraud as a basis for understanding the nature and application of taxpayer valuation has not been addressed.

Published

2020-11-01

Issue

Section

Articles