What Shapes Taxpayers' Ethical Acceptance of Tax Evasion? The Roles of Tax System, Discrimination, and Tax Sanctions
DOI:
https://doi.org/10.5281/zenodo.21846245Keywords:
Perceived Discrimination, Tax Evasion Ethics, Tax Sanctions, Tax System, Voluntary Tax ComplianceAbstract
This study examines the influence of the tax system, perceived discrimination, and tax sanctions on taxpayers' ethical acceptance of tax evasion among registered taxpayers at the Tax Counseling, Service, and Consultation Office (KP2KP) of Rote Ndao Regency, Indonesia. The study is motivated by the need to better understand the institutional and behavioral factors that shape taxpayers' ethical judgments, particularly in geographically underrepresented regions. A quantitative explanatory research design was employed using primary data collected from 100 taxpayers through structured questionnaires. The proposed hypotheses were tested using multiple linear regression analysis after the data satisfied the required validity, reliability, and classical assumption tests. The findings reveal that the perceived quality of the tax system and tax sanctions significantly influence taxpayers' ethical acceptance of tax evasion, whereas perceived discrimination has no significant effect. Furthermore, the three institutional factors jointly exert a significant influence on taxpayers' ethical evaluations. These results suggest that taxpayers' ethical judgments are shaped primarily by institutional conditions rather than perceptions of unequal treatment alone. The study contributes to the behavioral taxation literature by extending empirical evidence to an underexplored regional context and highlights the importance of strengthening institutional quality, credible enforcement, transparency, and public trust to encourage voluntary tax compliance and support sustainable public finance.
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