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b. Self Assessment System
It is a tax collection system that gives authority, trust, and responsibility for taxpayers to calculate, estimate, pay, and report their
own amount of tax to be paid. c.
With Holding System Tax collection system that gives authority to a third party who
appointed to determine the amount of tax payable by the taxpayer in accordance with the tax laws and regulations. The appoinment of third
party is done according to the tax laws, presidential decrees and other regulations to cut and collect taxes, deposit, and account for through
taxation means available.
2. Tax Consciousness
Consciousness is an element in human beings to understand reality and how they act or behave towards reality. Jatmiko 2006 explains that
consciousness is a state of knowing or understanding. Irianto 2005 in Widayati and Nurlis 2010 outlines some form of consciousness pay taxes
that encourage taxpayers to pay their taxes. The realization that taxes are a form of participation in supporting the countrys development. Knowing this,
the taxpayer would pay taxes because they are not be aggrieved from the collection of tax.
Consciousness is the behavior or attitude of an object which involve assumptions and feelings as well as the tendency to act in accordance the
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object. Thus it can be said that the tax consciousness in paying taxes is a form of taxpayer behavior or outlook feelings involving knowledge, belief and
reasoning with tendency to act on the stimulus provided by the system and the tax provisions.
In Jatmiko 2006, Sumarso 1998 stated that low public consciousness of taxation often be one of the reasons many potential taxes that could not be
captured. Still in Jatmiko 2006, Larche 1980 also suggests that consciousness of taxation is often a constraint in the public issue of tax
collection. Empirically also been demonstrated that higher of tax consciousness it will be the higher level of tax compliance Suyatmin, 2004 in
Jatmiko, 2006. As one important part to rotate state economy, taxes are points that must
be recognized and doing by society whose are taxpayers. Taxpayers consciousness to fulfill their tax obligations needed to realize that taxes have
an important contribution in the State as a means of development progress, economic evenly and prosperity for the country.
From the literature and research above, it can be obtain several dominant internal factors that make a taxpayer consciousness to comply, which are :
a. Taxpayer Perception
Taxpayer consciousness to fulfill their tax obligations will be increased if the public perception appears positive of taxes. Torgler 2008 states that
the taxpayer consciousness to dutifully pay taxes associated with the
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perception that include paradigm will be the tax function for financing development, usability taxes in the provision of public goods, as well as
justice fairness and legal certainty in the fulfillment of tax obligations. Availability public goods is a matter of taxpayer trust in the use of taxes
paid. If taxpayers feel that the taxes paid cannot be properly managed by
the government, so the taxpayers feel do not get benefit of tax paid, then taxpayers would not be obey to pay tax.
2. The level knowledge on the provisions of the applicable tax. The level knowledge and understanding of taxpayer on the provisions of
tax that existing, effect on behavior of tax consciousness. Taxpayers
whose do not understand the tax laws are clearly likely to be a taxpayer whose do not obey, and conversely the taxpayers whose understand the
tax laws, more conscious of the sanction that will accepted if shirking their tax obligation. Research conducted by Fikriningrum 2012 gives the
result that the taxpayer understanding of the tax rule has a positive and significant influence on taxpayer consciousness in its tax reporting.
3. Taxpayer financial condition.
Financial condition is an economy factor that affects tax compliance. The financial condition is the company financial ability that reflected on the
level of profitability and cash flow. Company profitability is one of the factors that influence the consciousness to comply with tax regulations.
Companies which have high profitability tend to report honestly on the tax
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than companies with low profitability. Companies with low profitability in generally are experiencing financial difficulty and tend to tax non-
compliance. Similarly, the cash flow with liquidity conditions. Taxpayer that have consciousness Manik Asri, 2009 in accordance with
the following: 1.
Know the laws and tax regulations. 2.
Determine the function of taxes for state financing. 3.
Understand that the tax liability must be carried out in accordance with the applicable regulations.
4. Understand the function of taxes for state financing.
5. Calculate, pay, tax reporting voluntarily.
6. Calculate, pay, tax reporting correctly.
3. Service Tax Authorities
