The Level of Taxpayer compliance

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CHAPTER IV RESULT AND ANALYSIS

A. An Overview Of The Research Object

1. A brief history of The Tax Service Office KPP Pratama Senen¸Jakarta

Before 1984, Tax Services Office KPP Pratama Senen, Jakarta was named Tax Inspection Office of Central Jakarta III which was under the coordination of the regional office III of Directorate General of Tax Paripurna. Based on the Minister of Finance of the Republic of Indonesia decision No. 994KMK. 011984, Tax Inspection Office of Central Jakarta III was under coordination of the regional office XI of Directorate General of Taxation Paripurna in 1984. According to decision of the Minister of Finance of the Republic of Indonesia No. 276KMK. 011989 on March 25 th , 1989, Tax Inspection Office of Central Jakarta III was divided into two offices, namely: a. Tax Inspection of Central Jakarta III It is located at Jalan Kwini No.7-Jakarta Pusat. The working area includes Kemayoran sub-district and Cempaka Putih sub-district b. Tax Inspection of Central Jakarta VI It is located at Jalan Kramat Raya No. 136-Central Jakarta. Senen sub- district is the working area of Tax Inspection of Central Jakarta VI. 69 70 The Minister of Finance of the Republic of Indonesia decision No. 758KMK. 011993 dated August 3 rd , 1993 declared that the Tax Inspection Offices of Central Jakarta VI was changed into Tax Service Office KPP of Central Jakarta III. Tax Service Office KPP of Central Jakarta III is under coordination of the regional office V of Directorate General of Tax Jaya II. Directorate General of Taxes changed the name of Tax Service Office KPP of Central Jakarta VI which becomes Tax Services Office KPP Senen and the Tax Service Office KPP of Central Jakarta III which divided into Tax Services Office Kemayoran and Tax Services Office Cempaka Putih. Those were based on the Minister of Finance decision No. 94KMK. 011994. In accordance with the Minister of Finance of the Republic of Indonesia decision No. 443KMK. 012001, Tax Service Office KPP Senen is under coordination of the regional office VI of Directorate General of Tax Jaya III which is change into the regional office of Directorate General of Tax Jakarta I. Regarding to the decision of the Minister of Finance of the Republic of Indonesia No. 254KMK. 12004 May 24 th , 2004, Tax Service Office KPP Senen was changed into Tax Services Office KPP Pratama Senen,Jakarta which uses Modern Taxation Administration System. 71

2. Vision and Mission of Tax Services Office Pratama Senen, Jakarta

a. Vision

Become a trustable and proud social services which organize world class system and tax management model .

b. Mission

1 Fiscal Gathering local income from tax sector which could support independence governmental financing according to the tax law with a high affective and efficiency level. 2 Economics Supporting the Government policy to overcome the nations economic problems with an wisdom that taxation minimizing distortion. 3 Politics Supporting the process of democratization of the nation 4 Institutional Always keep self improvement along with the society aspiration, tax technocracy and up to date tax administrative system.

3. Duties and Functions

Based on the Minister of Finance, Tax Services Office KPP Pratama Senen, Jakarta is the vertical institution of the Directorate General of Tax 72 which has direct responsibility to the head of regional office of the Directorate General of Tax Jakarta I. The main task of Tax Service Office KPP Pratama Senen, Jakarta is doing counseling, servicing, and supervising the tax payer in the term of income tax, value added tax VAT, tax on luxury goods, the other indirect taxes, land and building tax PBB as well as duties on land and building transfer BPHTB in the area of its authority which is based on the applicable law. In this case, the area of Tax Service Office KPP Pratama Senen, Jakarta is at the region of Senen sub-district. In doing its task, the Tax Service Office KPP Pratama Senen, Jakarta performs several activities: a. Collecting, searching, and processing of data, taxation potential observation, taxation information disclosure, data collection of the object and the subject of taxes, and the assessment of land and building tax. b. Determining and publishing the products of tax law. c. Administering documents and files of taxation, receiving and processing of the notification letter and the other letters. d. Tax counseling e. Implementation of taxpayer registration f. Implementation of Extensification g. Administration of the tax receivable and implementation of tax collection 73 h. Implementation of the tax inspection i. Supervision in the compliance of tax payer with tax obligation j. Implementation of tax consultation k. Implementation of Intensification l. Implementation of the administration of the Tax Service Office KPP Pratama. Tax Service Office KPP Pratama Senen, Jakarta covers all regions in Senen sub-district which contains 6 villages: a. Village Senen Kelurahan Senen b. Village Paseban Kelurahan Paseban c. Village Kenari Kelurahan Kenari d. Village Kramat Kelurahan Kramat e. Village Kwitang Kelurahan Kwitang f. Village Bungur Kelurahan Bungur

4. Characteristic of Sample

The questionare has been distributed to 100 individuls taxpayer in Tax Service Office KPP Pratama Senen, Jakarta and all of the questioners are returened. There are 86 questionnaires 86 can be processed because 9 questionnaires 9 do not meet criteria as a sample and 5 questionnaires 5 are not filled completely by the respondents. The description of the samples is presented in table 4.1.