STRENGTHENING TAX COMPLIANCE THROUGH TRANSPARENCY AND TRUST IN WPOP IN MAKASSAR CITY

Abstract

Background - his study aims to strengthen tax compliance through a transparent tax system and increase the trust of individual taxpayers (WPOP) in Makassar City. This topic is relevant because many developing countries, including Indonesia, still use taxes as their main source of income, but public trust in the government, especially in terms of taxes, is still low due to various cases, including corruption that undermines trust

Purpose - The purpose of this study is to provide empirical evidence on how the transparency of the tax system and trust in tax authorities affect the voluntary compliance behavior of taxpayers. The research also aims to identify the factors that contribute to tax compliance, both from a direct and indirect point of view through trust

methodology - This study uses primary data, through the use of questionnaires as a data collection instrument, which is a correlational and cross-sectional survey that seeks to understand how the government's role in strengthening tax compliance through transparency and taxpayer trust in the authority seen based on the
perceptions of OP taxpayers in Makassar. Data from 99 questionnaire respondents were analyzed using the Statistical Package using PLS

Findings - The results showed that the transparency tax system affects tax compliance not only directly, but even mediated by trust also further increases tax compliance. The study's originality lies in its localized focus on individual taxpayers in a developing country, offering fresh insights not typically explored in broader compliance studies.

Originality - The novelty of the research is its demonstration of the combined effect of transparency and trust on tax compliance, providing a nuanced understanding of these dynamics in the context of developing nations