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the installation of billboards in strategic location and improve the performance of extension as information services and public relation.
b. Simplification of Administration of Taxation
Information technology support accelerating the process of services and investigation in which the database is developed in the
online network will probably allow the acceleration of information access and also reporting services of Notification letter SPT and
payment of taxes can reduce online administrative cost and compliance cost.
4. The Organizational Culture
Organizational culture is defined as a system of dissemination of belief and values developed in the organization and steer the behavior of
its members. Organizational culture represents the common perception
held by members of the organization. Abdul Rahman:2010:213.
Some of the activities of the modernization of organizational
culture, namely:
a. Clear and authoritative governance implementation program, Clean and authoritative governance good governance is characterized by
the existence of a code of ethics of employees in Directorate General of Taxes based on the decision of the Minister of Finance No.
384KMK. 032002 of 27 August 2002, the existence of code of conduct Directorate General of Taxes Committee based on the
decision of the Minister of Finance No. 226KMK. 032002 of 14 May
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2002, the existence of Taxation and Customs and Excise Division at National Ombudsman Committee, any cooperation with the
Inspectorate-General of the Department of finance and internal
consolidation.
b. Apply the code of conduct to all employees in Directorate General of Taxes, the establishment of a code of conduct Committee, increase the
effectiveness of supervision by the Inspectorate-General of the Department of finance and cooperation with the National Ombudsman
Commission.
E. Taxpayer compliance
1. Definition of Compliance
Quoted from Desi Handayani, taxpayer compliance can be defined as a situation where taxpayer fulfill their taxation obligations and obtain
their taxation rights. According to Kiryanto in Supriyati 2012:7, taxpayer compliance
is defined as the behaviour of taxpayer who enter and report the required information in time, fill out correctly the amount of taxes owed, and pay
taxes on time, in the absence of coercive action. Non compliance occurs when one of the conditions of the definition are not met.
Quoted from Desi Handayani, there are two kinds of compliance, namely formal compliance and material compliance. Formal compliance is
a situation where taxpayer comply with tax obligations in accordance with
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a formal provision in the taxation laws. While the material compliance is a situation where taxpayer substantively meets all material provisions of the
taxation. Material compliance may include formal compliance. From several explanations that have described above, it can be
concluded that the taxpayer compliance is compliance fulfill all taxation laws, such as taxpayer compliance in registering, compliance in reporting,
compliance in the calculation and payment of payable taxes as well as
taxpayer compliance in the payment of arrear of payable taxes. 2.
The Factors That Affect Taxpayer compliance
According to Franzoni in Banu 2008 taxpayer compliance can be seen from several perspectives and it is influenced by several factors: 1
their tendency ons public institutions in this case the Directorate General of taxes; 2 a justice who is felt by taxpayer from the existing system;
and opportunity over the possibility of detected violation and punished in accordance with the existing legislation.
Meanwhile, according to Eliyani in Lasnofa 2010 level of compliance is affected by several factors, namely the condition of a
countrys tax administration system, service on the taxpayer, tax law enforcement, inspection of the taxes and tax rates. Awareness and
compliance to meet the obligation of taxation also depends on the willingness of the taxpayer, to the extent that taxpayer will comply with
the provisions of the legislation.