The Influence of Corporate Governance, Tax Planning, and Perception of Tax Fairness on Corporate Tax Compliance in West Java Province
DOI:
https://doi.org/10.58812/sdi.v2i01.2704Keywords:
Corporate Governance, Tax Planning, Tax Fairness Perception, Corporate Tax Compliance, West Java ProvinceAbstract
Tax compliance among corporate taxpayers is a critical factor in ensuring the sustainability of government revenue and supporting economic development. However, corporate tax compliance can be influenced by various internal and behavioral factors within organizations. This study aims to analyze the influence of corporate governance, tax planning, and perceptions of tax fairness on corporate tax compliance in West Java Province. The research employs a quantitative approach using primary data collected through questionnaires distributed to corporate taxpayers, involving 55 respondents consisting of finance managers, accountants, tax staff, and company owners. The measurement of research variables was conducted using a Likert scale, and the data were analyzed using multiple linear regression with the assistance of SPSS version 25. The results of the analysis indicate that corporate governance, tax planning, and perceptions of tax fairness have positive and significant effects on corporate tax compliance. Corporate governance encourages transparency, accountability, and ethical financial practices that contribute to higher compliance with tax regulations. Tax planning practices also support corporate tax compliance by enabling companies to manage tax obligations efficiently while remaining within the boundaries of tax law. In addition, perceptions of tax fairness influence companies’ willingness to comply voluntarily with tax obligations when the tax system is perceived as transparent and equitable. Simultaneously, these three variables explain 54.9% of the variation in corporate tax compliance, indicating that they play an important role in shaping corporate taxation behavior. The findings of this study provide valuable insights for policymakers and tax authorities in designing policies that strengthen corporate governance, encourage responsible tax planning, and improve perceptions of fairness within the tax system to enhance corporate tax compliance.
References
[1] T. Iwanowicz and B. Iwanowicz, “ISA 701 and materiality disclosure as methods to minimize the audit expectation gap,” J. Risk Financ. Manag., 2019.
[2] S. P. A. Setiyaviani and L. Julian, “Evaluasi Lingkungan Pengendalian dengan Kerangka Pengendalian Internal COSO di KPP Pratama Jakarta Pesanggrahan,” Own. Ris. dan J. Akunt., vol. 7, no. 4 SE-, pp. 3350–3364, Oct. 2023, doi: 10.33395/owner.v7i4.1674.
[3] N. Tilabov, “PROSPECTS FOR THE USE OF DIGITAL TECHNOLOGIES IN SECURING TAX REVENUES,” in Proceedings of the 6th International Conference on Future Networks & Distributed Systems, 2022, pp. 60–65.
[4] I. N. Darmayasa, N. W. D. W. Utami, and I. N. Mandia, “The Embodiment Of Voluntary Compliance Through Understanding Of Msmes Tax Compliance Perception,” Assets J. Akunt. dan Pendidik., vol. 10, no. 1, pp. 63–72, 2021.
[5] S. San et al., “POTENTIAL FACTORS MOTIVATING TAX COMPLIANCE AMONG SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs),” Adv. Int. J. Business, Entrep. SMEs, vol. 5, pp. 56–65, Jun. 2023, doi: 10.35631/AIJBES.516006.
[6] R. Jacobi and E. Brenner, “How large corporations survive digitalization,” Digit. Mark. unleashed, 2018, doi: 10.1007/978-3-662-49275-8_11.
[7] Y. Prayogo, A. Mutia, P. Hardiningsih, and I. Setiawati, “The Relationship of Sustainability Report with Firm Values Jakarta Islamic Index,” Jabe (Journal Account. Bus. Educ., vol. 8, no. 2, p. 99, 2023, doi: 10.17977/jabe.v8i2.46032.
[8] I. T. Bakti and N. Nengzih, “The Effect of Financial Performance, Company Characteristics and,” Corp. Gov. Qual. Sustain. Rep., pp. 2017–2020, 2023.
[9] N. A. Pratiwi, E. Susilowati, S. Syukriah, D. Pianda, and E. Susanti, “Quality Performance of Manufacturing Companies in West Java: SCM, TQM, and JIT Impact,” J. Inform. Ekon. Bisnis, pp. 785–790, 2023.
[10] D. Pitoyo, T. Yuniarsih, E. Ahman, and S. Suparno, “Model of employee empowerment and organizational performance at National Strategic Manufacturing Companies in West Java,” in 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018), Atlantis Press, 2019, pp. 201–205.
[11] N. F. Nasution and K. T. Wahyuni, “Industrialization and Convergence of West Java Manufacturing Labor Productivity, Indonesia,” JEJAK, vol. 15, no. 1, pp. 165–178, 2022.
[12] O. A. Alam and H. Ernandi, “The Influence of Taxation System Fairness, Financial Condition and Subjective Beliefs on Tax Compliance by Corporate Taxpayers with Intentions to Behave Obediently as Intervening Variables,” Indones. J. Innov. Stud., vol. 20, pp. 10–21070, 2022.
[13] Z. Akhand, “The influence of the corporate sector on the effectiveness of tax compliance instruments,” in Advances in Taxation, Emerald Publishing Limited, 2018, pp. 119–146.
[14] M. Siglé, S. Goslinga, R. Speklé, L. van der Hel, and R. Veldhuizen, “Corporate tax compliance: Is a change towards trust-based tax strategies justified?,” J. Int. Accounting, Audit. Tax., vol. 32, pp. 3–16, 2018.
[15] E. Pimentel and E. Boulianne, “Blockchain in accounting research and practice: Current trends and future opportunities,” Account. Perspect., 2020, doi: 10.1111/1911-3838.12239.
[16] M. Mahrani and N. Soewarno, “The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable,” Asian J. Account. Res., vol. 3, no. 1, pp. 41–60, 2018.
[17] M. Bankewitz, C. Aberg, and C. Teuchert, “Digitalization and boards of directors: A new era of corporate governance,” Business and Management …. researchgate.net, 2016.
[18] N. Lüdemann, A. Shiba, N. Thymianis, N. Heist, C. Ludwig, and H. Paulheim, “A knowledge graph for assessing agressive tax planning strategies,” in The Semantic Web–ISWC 2020: 19th International Semantic Web Conference, Athens, Greece, November 2–6, 2020, Proceedings, Part II 19, Springer, 2020, pp. 395–410.
[19] R. Y. Bramasta and Y. Budiasih, “THE EFFECT OF PROFITABILITY, BOOK TAX DIFFERENCE AND TAX PLANNING ON INCOME MANAGEMENT IN AUTOMATICALLY SUB-SECTOR MANUFACTURING COMPANIES AND COMPONENTS REGISTERED IN INDONESIA STOCK EXCHANGE,” Int. J. Econ. Educ. Entrep., vol. 1, no. 1, pp. 22–30, 2021.
[20] D. Sari and R. M. Qibthiyyah, “Tax Revenue and Income Inequality,” J. Perenc. Pembang. Indones. J. Dev. Plan., vol. 6, no. 2, pp. 155–172, 2022.
[21] S. H. Sikayu, M. Rahmat, and A. N. Chan, “Fairness, transparency and attitude towards tax evasion amongst owners of SMEs,” Int. J. Serv. Manag. Sustain., vol. 7, no. 1, pp. 185–206, 2022.
[22] I. Ghozali, “Multivariate Analysis Application with the IBM SPSS 25 Program. Semarang,” Semarang Diponegoro Univ. Publ. Agency, 2018.
[23] J. Ballerini, D. Herhausen, and A. Ferraris, “How commitment and platform adoption drive the e-commerce performance of SMEs: A mixed-method inquiry into e-commerce affordances,” Int. J. Inf. Manage., vol. 72, p. 102649, 2023, doi: https://doi.org/10.1016/j.ijinfomgt.2023.102649.
[24] E. Gyamera, W. Abayaawien Atuilik, I. Eklemet, A. Henry Matey, L. A. Tetteh, and P. Kwasi Apreku-Djan, “An analysis of the effects of management accounting services on the financial performance of SME: The moderating role of information technology,” Cogent Bus. Manag., vol. 10, no. 1, 2023, doi: 10.1080/23311975.2023.2183559.
[25] P. E. Davis, J. S. Bendickson, J. Muldoon, and W. C. McDowell, “Agency theory utility and social entrepreneurship: issues of identity and role conflict,” Rev. Manag. Sci., vol. 15, pp. 2299–2318, 2021.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Loso Judijanto, Triana Zuhrotun Aulia, Mega Arum, Safier Ramdani, Irwan Irawadi Barus, Eko Sudarmanto
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
+62 821 1557 5700
westscience.journals@gmail.com