The Compliance Of Paying Taxes In Tiyingtali Village

Abstract
Taxes are instrumental in driving the wheels of the economics. But at this
time many taxpayers who do evasion and tax negligence that will ultimately lead
to the state tax revenue will be reduced. Land and Building Tax (PBB) is a Local
Tax as one of the important local revenue sources to finance the implementation of
the local government to establish a broad regional autonomy, real and responsible.
Therefore we need taxpayer compliance in meeting the obligations it is important
in the collection of taxes. Tax compliance can be seen from the revenue target and
Land and Building Tax (PBB) that have been realized. This research was conducted
in the Office of Regional Revenue in Karangasem, which in this study the authors
examined the Taxpayer Compliance Analysis Based Revenues and Building Tax
specifically for Tiyingtali Village. The purpose of this study is to determine how
large the percentage level of tax compliance Land and Building (PBB) Revenues
by land and building tax (PBB) from Tiyingtali Village. The analytical method used
is descriptive method in which the data obtained from the Department of Revenue
Karangasem processed by looking at the percentage of realization of revenue from
land and building tax (PBB). The author can conclude that the level of compliance
in 2017 is 68,66 % (Less Comply), so it can be concluded that the Land and
Building Taxpayers (PBB) in Tiyingtali Village are disobedient to their obligation
to pay taxes..

Keywords : The tax complience, Taxpayer, Land and building tax.

 CHAPTER 1
PHENOMENON

According to the Director General of Tax at the Ministry of Finance Fuad

Rahmany, the level of tax compliance in Indonesia is still very minimal. Based on
Ministry of Finance data, out of a total of 12,000,000 corporate taxpayers (non-
individuals) only 5,000,000 have generated operating profits. Of these, only
550,000 or 11% routinely report annual tax returns (SPT). Based on a survey
conducted by the Directorate General of Taxes (DGT), the level of taxpayer
compliance in Indonesia, both individuals and entities is still relatively low
(kemenkeu.go.id).
Karangasem regency in 2017 lowest in terms of economic growth and to
obtain a high number for the percentage of poor people in the province of Bali after
Jembrana. Besides that, Karangasem is also fairly low which is reflected in the GDP
per capita of Karangasem regency over the past five years occupies the lowest
position in the province of Bali.
To optimize the income earned in Karangasem Regency, the contribution of
the level of taxpayer compliance is very large in realizing everything. With
increasing taxpayer compliance in fulfilling its tax obligations, it will be able to
increase regional income in the field of taxation so that the budget used to carry out
development will increase. So, with increasing taxpayer compliance, Karangasem
regency can increase economic growth.
Tiyingtali village is a village in Karangasem district with a population of
4,128 people, most of the population work as farmers. awareness of paying taxes is
very important for the community, because taxes can encourage increased
infrastructure in Tiyingtali Village. So that it can improve the economy of Tiyingtali
Village.
Compliance with taxpayers originating from public awareness of its
obligation to pay taxes is certainly not something that stands alone. Various taxation
problems that often arise, both those originating from individual and corporate
taxpayers, tax apparatus (tax authorities), and those sourced from the taxation itself.
Public awareness to pay taxes is compliant, but there are some taxpayers who still
neglect their obligations so that the target of revenue is not realized.
Land and Building Tax (PBB) is a potential that must continue to be
explored in increasing regional revenue because the object of this tax is clear earth
and buildings, most of the people own it. It's just that the collection of Land and
Building Tax (PBB) often gets obstacles, both starting from socialization to the
community that lacks a narrow understanding of the community regarding taxes
until the collection method is less effective and efficient and so forth.
Efforts to improve tax revenues, faced with the condition that the tax system
is still not optimal. In the self assessment system, the current position of Taxpayers
is very important because taxpayers are required to independently tax obligations.
The obligation of tax calculators, tax payments, and tax reporting is carried out by
taxpayers themselves. Thus a Taxpayer is required to understand and understand
not only taxation regulations, but also administrative aspects and taxation
procedures.
In an effort to increase tax compliance of the society, education role
becomes a very important role. In this case, study can serve as a knowledge transfer
from the government to the people associated with taxation. It is important to avoid
asymetris information continuously, so as to interfere with the government's efforts
to increase tax revenues. The role of education in improving tax compliance can be
realized in the form of tax socialization both formally and informally. Socialization
can be done both by providing direct counseling to the object of taxation and
through other activities involving the wider community.
 CHAPTER 2
QUOTATION
Based on internet source https://www.disitu.com, cited on 14th of November
2018 at 05:00 PM. Tax is a mandatory levy paid by the people for the country and
will be used for the benefit of the government and the general public. People who
pay taxes will not benefit from taxes directly, because taxes are used for public
purposes, not for personal gain. Tax is one of the sources of government funds to
carry out development, both the central government and the regional government.
Tax collection can be forced because it is implemented under the law. Tax is the
compulsory contribution of the people to the debt country, either as an individual
or a business entity that is compelling based on the law, by not getting compensation
directly and used for state needs for the greatest prosperity of the people. Payment
of taxes is an embodiment of obligations and roles of taxpayers to participate
directly and jointly implement state financing and national development. In
accordance with the philosophy of the tax law, paying taxes is not only an
obligation, but is the right of every citizen to participate and participate in state
financing and national development.
The use of taxes starts from employee expenditure to financing various
development projects. Construction of public facilities, such as roads, bridges,
schools, hospitals / health centers, and police stations are financed from taxes.
Infrastructure development, education costs, health costs, fuel oil subsidies (BBM),
civil servants' salaries, and the construction of public facilities are all funded by
taxes. The more taxes collected, the more facilities and infrastructure will be built.
Therefore, taxes are the spearhead of a country's development. So that it is
appropriate for good citizens to pay taxes. The Indonesian government has made it
easy for the public to pay taxes.
Based on internet source https://www.cermati.com, cited on 14th of
November 2018 at 05:30 PM. Tax has a very important role in the life of the state,
the tax has several functions, among others: 1) Budget function (Budgetair), namely
tax is used as a tool to enter funds optimally into the state treasury based on
applicable tax laws, so that taxes function finance all expenses related to the
government process. Taxes are used for routine financing, such as: employee
expenditure, goods shopping, maintenance, and others. For development financing,
money is spent on government savings, namely domestic revenues minus routine
expenses. The government savings increased continuously from year to year
according to the increasing financing needs of development. 2) Function Regulates
(Regular), that is, taxes are used by the government as a tool to achieve certain goals
and complementary functions of the budget. The government can regulate
economic growth through tax policy. For example: in the context of investment,
both domestically and abroad, various types of tax relief facilities are provided. In
order to protect domestic production, the government sets a high import duty for
foreign products. 3) Stability function, namely tax makes the government have
funds to carry out policies related to price stability, so that inflation can be
controlled. This can be done by regulating the circulation of money in the
community, tax collection, effective and efficient use of taxes. 3) Function of
Income Retribution, that is, taxes are used to finance all public interests. Including
to finance development so that it can open employment opportunities, so as to
increase people's income.
Based on internet source http://royanmakalah.blogspot.com, cited on 21st of
November 2018 at 03:30 PM. Land and Building Tax (PBB) is a State Tax imposed
on earth and or buildings based on Law Number 12 of 1985 concerning Land and
Building Tax as amended by Law number 12 of 1994. Land and Building Tax is a
material tax meaning the amount of tax payable is determined by the state of the
object, namely earth / land and or building. The state of the subject (who pays) does
not determine the amount of tax. So from the above understanding it can be
concluded that the building land tax is a tax imposed on the earth and buildings, the
amount of tax is determined by the state of the object namely earth / land / building.
Based on internet source https://www.hestanto.web.id, cited on 21st of
November 2018 at 04:30 PM. Safri Nurmantu in Siti Kurnia Rahayu (2010: 138),
Taxpayer Compliance can be defined as a situation where the taxpayer fulfills all
tax obligations and applies his taxation rights. According to Machfud Sidik in Siti
Kurnia Rahayu (2010: 19), compliance with voluntary of complince is part of a self
assessment system, where taxpayers are responsible for setting their own tax
obligations and then paying accurately and on time and report the tax. Compliance
with taxpayers originating from public awareness of its obligation to pay taxes is
certainly not something that stands alone. Various taxation problems that often
arise, both those originating from individual and corporate taxpayers, tax apparatus
(tax authorities), and those sourced from the taxation itself. Public awareness to pay
taxes is compliant, but there are some taxpayers who still neglect their obligations
so that the target of revenue is not realized.
 CHAPTER 3
OPINION

Tax is the largest income sector of the State treasury, State Revenue from
the tax sector plays a very important role for the continuity of the system of
Government of a country. Tax is the contribution of the taxpayer to the State owed
by an individual or entity that is compelling based on the Law, by not getting
compensation directly and used for the State's needs for the greatest prosperity of
the people. Payment of taxes is an embodiment of state obligations and participation
for the community, especially taxpayers to directly and jointly implement tax
obligations for financing the State and national development.
As much as 70% more of the state revenue of the Republic of Indonesia comes from
taxes, both central and regional taxes. Therefore the Government continues to try
to boost and increase the target of tax revenue from year to year, this is intended so
that the Government's programs in running the Government to improve the welfare
of the community can be increased as well. As we all know, the awareness and
concern of the Indonesian people towards Taxes are still very lacking even though
in recent years there has been a very good increase, but still most people are still
layman about taxes, both ways of carrying out tax obligations and equally important
are lack of knowledge about the benefits and uses of taxes for the life of the nation
and state.
To analyze and discuss the problems in this study, this study uses
quantitative data. The data sources used in this study are secondary data, namely
data originating from the Regional Revenue Service Office of the Regency of
Karangasem, namely by submitting a research request, conducting a survey,
conducting interviews, collecting research data, comparing and processing
information. The technique used in collecting data in the study is Observation,
Interview, Documentation. The analytical method used is descriptive analysis
method, where this study measures the percentage level of compliance of Land and
Building Taxpayers (PBB) based on the realization of land and building tax
revenues (PBB) from Tiyingtali Village. The criteria of taxpayer compliance can
be explained in table 3.1:

Table 3.1
The criteria of taxpayer compliance
No Taxpayer Compliance Compliance ratio
1 Very obedient 91 - 100
2 Obedient 81 - 90
3 Obedient enough 71 - 80
4 Less Comply 61 - 70
5 Not Obey ≤ 60
Source: Data processed, 2018
 The analytical model used to determine whether the level of compliance of
Land and Building Taxpayers (PBB) from Tiyingtali Village is based on the tax
assessment whether Obedient or Poorly Adhered to by using the following formula:

Total realization of PBB

Taxpayer compliance = 𝑥 100%
Land and building tax revenue targets

Table 3.2
Target and Reality of Land and Building Tax Receipts (PBB) in Tiyingtali Village
in 2017

Land and Building Tax (PBB) Compliance

Level
No Year Taxpayer Targets (Rp)
Realization
Taxpayer
Explanation
(Rp)
(%)
1 2017 1.500 22.500.230 15.450.776 68,66 % Less Comply
Source: Regional Revenue Service of Karangasem Regency, 2017

From table 3.2, the level of Compliance with Land and Building Taxpayers
is based on Realization of Land and Building Tax Revenues (PBB), then it is
calculated using the following formula:

15.450.776
Taxpayer compliance = 𝑥 100% = 68,66 %
22.500.230

From the above calculations it is known that in 2017 the Compliance of

Land and Building Taxpayers (PBB) in Tiyingtali Village was 86.44% (Less
Comply). From the analysis conducted, it can be seen that the realization of Land
and Building Tax (PBB) revenue is not reached the target that should be received
by the Regional Revenue Service of Karangasem Regency especially from
Tiyingtali Village. Thus there are still many taxpayers who have not paid Land and
Building Tax (PBB) in Tiyingtali Village. Based on the percentage processed from
the data obtained from the Regional Revenue Service of Karangasem Regency, it
can be concluded that the taxpayer in Karangasem Regency is less comply to the
obligation to pay land and building tax (PBB).
The Indonesian state adheres to the Self Assessment System, that is, the
taxpayer has been given the authority to self-calculate, self-report and pay for itself
the tax owed to be paid. The principle of tax collection in Indonesia has been based
on justice by adhering to the principle of Equality, namely taxation carried out by
the state must be in accordance with the ability and income of taxpayers, in which
the state may not act discriminatory against taxpayers.
 Tax is an important element in government finance. Tax is also one of the
sources of government funding that will be used to finance state and regional
infrastructure and to implement other policies for nation building. One of the taxes
collected by the regional government as local revenue is land and building tax. Land
and building tax is tax imposed on immovable property consisting of land and
buildings owned by taxpayers. Land and Building Tax Subjects / UN are individuals
or entities that use or have tax objects in the form of land and or buildings (Owners
or Tenants).
Tax compliance can be defined as a situation where a taxpayer fulfills all
tax obligations and applies his taxation rights. Other definitions of taxpayer
compliance can be defined from: 1) Taxpayer's obligation to register. 2)
Compliance to deposit back the notification letter. 3) Compliance in the calculation
and payment of tax payable. 4) Compliance with payment of arrears. While
according to the Minister of Finance Decree No.544 / KMK.04 / 2000 states that:
"Tax compliance is the taxpayer's action in fulfilling his tax obligations in
accordance with the provisions of laws and regulations and applicable tax
regulations in a country.
Self Assessment System Definition according to General Provisions and
Procedures for Taxation (KUP) No. 28 of 2007 is a taxation system that gives trust
and responsibility to taxpayers to:
1) Initiate to register to get a Taxpayer Identification Number (NPWP)
2) Calculating, calculating, paying, and reporting the tax payable yourself.

According to the explanation of the Law concerning General Provisions and

Procedures for Taxation (KUP) No. 28 of 2007 that the self assessment tax
collection system means that the determination of the amount of tax payable is
entrusted to the taxpayer himself and regularly reports the amount of taxes owed
and paid as specified in tax laws and regulations. Media or letters used by taxpayers
to report tax calculations and payments called Notification Letter (SPT).
Trust given by law to taxpayers is ideally supported by:
1. Awareness of taxpayers regarding tax obligation
2. The desire to pay tax payable even though forced
3. The willingness of taxpayers to implement applicable tax regulations
4. Honesty of taxpayers to disclose actual conditions

According to the tax compliance dimensions are as follows: Formal compliance

is a condition in which the taxpayer fulfills formal obligations in accordance with
the provisions of the tax law. Material compliance is a condition in which the
taxpayer is substantively or essentially fulfills all material provisions of taxation in
accordance with the contents and soul of the tax law. Material compliance can
include formal compliance. Taxpayers who fulfill material compliance are filling
out the Tax Object Notification Form (SPOP). SPOP is filled clearly, correctly and
completely in accordance with the object of tax and taxpayers to pay the tax payable
accompanied by proof of SPPT.
The cause of lack of compliance with paying taxes may be caused by, 1)
taxpayers feel burdened with taxes that must be paid, 2) there are fears of taxpayers
on the use of paid taxes, such as taxes paid later to be corrupted, 3) not obliged to
fulfill their tax obligations because people others also do the same thing and
taxpayers do not want to obey taxes because they feel there is no perceived benefit,
4) people do not obey the tax law, 5) taxpayers lack trust in tax officials, 6) because
it is still difficult to carry out tax reporting.
 CHAPTER 4
SUGGESTION

Regional economy as well as the household economy which knows the

sources of income and expenditure items. Tax itself is the main source of state
revenue. Therefore, if the community does not obey taxes, then all state activities
will be difficult to fulfill. By paying taxes, people will benefit:
1. Public facilities and infrastructure such as roads, bridges, schools, hospitals,
and health centers.
2. Defense and security such as buildings, weapons, housing, and salaries.
3. Subsidies on food and fuel oil.
4. Environmental and Cultural Sustainability.
5. Development of mass transportation equipment, etc.

The tax money that has been deposited by the community will be used for
the purpose of making people from birth to death prosperous. Tax money is also
used by the state to subsidize goods needed by the people and pay off the country's
debts. In addition, tax money is used to support Micro, Small and Medium
Enterprises so that the economy can continue to develop, especially in Tiyingtali
Village. Therefore tax plays an important role in the economy of a region.
The suggestions that can be given so that the awareness of paying taxes can
be even higher include: 1) taxes are compulsory contributions which are regulated
by law from the people to the government. Therefore, taxpayers should be obliged
to make tax payments to increase regional development, especially in Tiyingtali
Village. 2) the application of sanctions for violations of the given tax is generally
applied in accordance with the severity of the implementation. 3) need to educate
in detail to all people. Dissemination of taxable objects and the limits of financing
subject to tax and how much tax must be paid by the taxpayer. Everything must be
educated clearly and in detail to the people so there is no tax fraud.
To increase public awareness about the importance of taxes, both in terms
of collection and benefits, education needs to be carried out on the importance of
taxes and continuous socialization, both through print and electronic media. Print
media in the form of advertisements in the form of pamphlets or banners on the
roadside or strategic places that provide tax benefit information. Electronic media
in the form of advertisements on television, radio, and the internet that explain the
importance of taxes.
The public must know that taxes paid go directly into the state treasury and
are used by the state for public interest, development, and the cost of administering
the state. In addition, the community also needs to be given the authority to oversee
the tax that has been paid, whether it has been properly distributed or not. If there
is a deviation, it must be reported to the authorities.