Analysis of the Influence of Personality and Tax Morals on Student’s Tax Evasion Intentions

Authors

  • Jolin Floren Elvinis Universitas Internasional Batam

Keywords:

big five personality, tax morale, tax evasion intention

Abstract

This study aims to investigate the correlation among personality traits, tax morale, and tax evasion intentions. The dependent variable in this research is tax evasion intentions, while the independent variables consist of the five dimensions of personality based on the Big Five Personality theory (agreeableness, conscientiousness, openness, extraversion, neuroticism), along with tax morale.

To conduct this research, a questionnaire was distributed to 353 active students of the 2019-2022 class from the Faculty of Business and Management at Batam International University. The questionnaire contained 35 questions and was rated using a 7-point Likert scale. The collected data were analyzed using SPSS 25, employing both multiple linear analysis and descriptive statistical analysis.

The study's findings revealed a significant positive association between extraversion and tax evasion intentions. On the other hand, conscientiousness and tax morale demonstrated a significant negative correlation with tax evasion intentions. However, no significant relationship was observed between openness to experience, agreeableness, neuroticism, and tax evasion intentions. These results indicate that individuals with higher levels of conscientiousness and tax morale are less likely to engage in tax evasion, while those with higher levels of extraversion tend to have a greater inclination towards tax evasion.

Downloads

Download data is not yet available.

References

Abratańska, K. (2022). The Relation of Social Norms, Political Beliefs, Personality Traits and Risk Preference to Tax Attitudes. 1–23.

Ackerman, C.E. (2020). Big Five Personality Traits: The OCEAN Model Explained. https://positivepsychology.com/big-five-personality-theory/.

Alaheto, T. (2003). Economic Crime: Does Personality Matter? International Journal of Offender Therapy and Comparative Criminology, 47(3). https://doi.org/https://doi.org/10.1177/0306624X03047003007

Alleyne, P., & Harris, T. (2017). Antecedents of taxpayers' intentions to engage in tax evasion: evidence from Barbados. Journal of Financial Reporting and Accounting, 15(1), 2–21. https://doi.org/10.1108/JFRA-12-2015-0107

Arunasalam, K. (2019). A study on the relationship between an individual's personality and tax compliance. International Journal of Recent Technology and Engineering, 7(5), 41–46.

Bodankin, M., & Tziner, A. (2009). Constructive deviance, destructive deviance and personality: How do they interrelate? Amphiteatru Economic, 26(1).

Chandra, B., & Cintya, C. (2021). Efforts to practice Good Corporate Governance in tax avoidance in Indonesia. Journal of Modernization Economics, 17(3), 232–247. https://doi.org/10.21067/jem.v17i3.6016

Cherry, K. (2019). What Are the Big 5 Personality Traits? https://www.verywellmind.com/the-big-five-personality-dimensions-2795422.

Cobham, A., Bernardo, J. G., Palansky, M., & Mansour, M. B. (2020). The State of Tax Justice 2020 : Tax Justice in the time of COVID-19. In Tax Justice Network (November Issue). https://www.taxjustice.net/reports/the-state-of-tax-justice-2020/

Costa, P. T., & McCrae, R. R. (1992). Four ways five factors are basic. 13(6), 653–665. https://doi.org/https://doi.org/10.1016/0191-8869(92)90236-I

Darmawan, IGH, & Sukartha, IM (2014). Factors that influence the occurrence of tax avoidance in manufacturing companies listed on the Indonesian Stock Exchange. Udayana University Accounting E-Journal, 9(1), 143–161.

Dasapradani, NS (2018). DETERMINANTS OF TAX COMPLIANCE IN INDIVIDUAL TAXPAYERS WHO DO EXCEPTIONAL WORK: IN THE FRAMEWORK OF THE THEORY OF PLANNED BEHAVIOR AND TAX CULTURE. FEB Student Scientific Journal, 6 (2)(August), 104–116. https://www.mendeley.com/catalogue/6ca574a2-0414-31f1-9cee-7839b47e73a6/?utm_source=desktop&utm_medium=1.19.8&utm_campaign=open_catalog&userDocumentId=%7B6a1bd3ad-6d2b-4273-87d3-252df9 f1a1e3%7D

Fitriani, A., & Sulistyawati, AI (2020). Factors that influence the occurrence of tax avoidance in manufacturing companies listed on the Indonesian Stock Exchange. Solutions, 18(2), 143–161. https://doi.org/10.26623/slsi.v18i2.2296

Friskianty, Y., & Handayani, BD (2014). The Influence of the Self Assessment System, Justice, Tax Technology, and Distrust of the Fiscus on Tax Evasion Actions. Accounting Analysis Journal, 3(4), 457–465.

Hananto, H., Subiantoro, G., & Hastuti, ME (2023). The Influence of Tax Morale on Tax Evasion Intention in Surabaya with Conscientiousness & Agreeableness Personality as Preliminary Moderation. 11(1), 21–33. https://doi.org/10.24036/wra.v11i1.1223

Huels, B., & Parboteeah, K. P. (2019). Neuroticism, Agreeableness, and Conscientiousness and the Relationship with Individual Taxpayer Compliance Behavior. Journal of Accounting and Finance, 19(4). https://doi.org/10.33423/jaf.v19i4.2181

Kalshoven, K., Hartog, D.N. Den, & Hoogh, A.H.B. De. (2011). Ethical Leader Behavior and Big Five Factors of Personality. Journal of Business Ethics, 100, 349–366.

Directorate General of Taxes Performance Report 2020. (2020). Performance Report of the Directorate General of Taxes 2020. In Ministry of Finance of the Republic of Indonesia Directorate General of Taxes. https://www.pajak.go.id/sites/default/files/2019-05/LAKIN DJP 2018.pdf

Luttmer, E. F. P., & Singhal, M. (2014). Tax morale. Journal of Economic Perspectives, 28(4), 149–168. https://doi.org/10.1257/jep.28.4.149

Mughal, M. M. (2012). Reasons of Tax Avoidance and Tax Evasion: Reflections from Pakistan. Journal of Economics and Behavioral Studies, 4(4), 217–222. https://doi.org/10.22610/jebs.v4i4.320

Mujiyati, M., Rohmawati, FR, & Ririn, WH (2018). Determinants of Perceptions Regarding the Ethics of Tax Evasion. Indonesian Accounting and Finance Research, 3(1), 1–12. https://doi.org/10.23917/reaksi.v3i1.5551

Nova. (2020). Y. Sri Pudyatmoko, introduction to Tax Law (Yogyakarta: Andi Offset, 2006) 63 22. 29–34.

O'Neill, T. A., & Hastings, S. E. (2011). Explaining workplace deviance behavior with more than just the “Big Five.” Personality and Individual Differences, 50(2), 268–273. https://doi.org/10.1016/j.paid.2010.10.001

OECD. (2022). Revenue Statistics in Asia and the Pacific 2022 - Indonesia. In OECD Tax Statistics (database) (Issue 28). https://www.oecd-ilibrary.org/taxation/data/revenue-statistics-in-asia/papua-new-guinea_d2ecd822-en

Olajube, Oluwaseun Adejoke., Ehigie, Benjamin Osayawe., Osuma, Rosemary Omonivie., Olayinka, Akinyinka., Opara, Chinedu Kelechi., & Ndom, BA (2018). Personality Attributes and Tax Morale As Predictors of. African Journal for The Psychological Study Of Social Issues, 7–20.

Olexová, C., & Sudzina, F. (2019). Personality Traits´ (BFI-10) Effect on Tax Compliance. Proceedings of the International Scientific Conference Hradec Economic Days 2019 Part II., 9, 182–188. https://doi.org/10.36689/uhk/hed/2019-02-018

Owusu, GMY, Bart-Plange, M.A., Koomson, TAA, & Arthur, M. (2021). The effect of personality traits and tax morality on tax evasion intention. Journal of Financial Crime. https://doi.org/10.1108/JFC-02-2021-0026

Palil, MR, Malek, MM, & Jaguli, AR (2016). Issues, challenges and problems with tax evasion: The institutional factors approach. Gadjah Mada International Journal of Business, 18(2), 187–206. https://doi.org/10.22146/gamaijb.12573

Parwati, NMS, Muslimin, Adam, R., Totanan, C., Yamin, NY, & Din, M. (2021). The effect of tax morality on tax evasion in the perspective of Tri Hita Karana and tax framing. Accounting, 7(6), 1499–1506. https://doi.org/10.5267/j.ac.2021.3.014

Power, R. A., & Pluess, M. (2015). Heritability estimates of the Big Five personality traits based on common genetic variants. Translational Psychiatry, 5(7), 10–13. https://doi.org/10.1038/tp.2015.96

Putri, N., & Helmayunita, N. (2022). The Influence of Extraversion and Neuroticism Personality on the Tendency to Act in Accounting Fraud. 4(4), 821–832.

Rantelangi, C., & Majid, N. (2018). Factors that Influence the Taxpayers' Perception on the Tax Evasion. 35(Miceb 2017), 219–225. https://doi.org/10.2991/miceb-17.2018.34

Roccas, S., Sagiv, L., Schwartz, S. H., & Knafo, A. (2002). The Big Five personality factors and personal values. 28(6), 789–801. https://doi.org/https://doi.org/10.1177/0146167202289008

Satyadini, AE, Erlangga, RR, & Steffi, B. (2019). Who Avoid Taxes? an Empirical Study From the Case of Indonesia. Scientax, 1(1), 1–26. https://doi.org/10.52869/st.v1i1.2

Siahaan, M.P. (2010). Elementary tax law: basic concepts of Indonesian taxation (Ed. 1, Cet). Science House.

Sulistiani, D. (2012). Factors that Influence Accounting Students' Intentions to Have a Career as Public Accountants: Application of the Theory of Planned Behavior (Empirical Study of Diponegoro University Students). In Diponegoro University Journal: Semarang.

Torgler, & Schneider, F.G. (2004). Center for Research in Economics, Management and the Arts Does Culture Influence Tax Morale? Evidence from Different European Countries (Issue June 2014).

Downloads

Published

2024-04-04