The Identity Social of Tax Compliance: How it Impacts Manufacturing Business
Agustine Dwianika1, Irma Paramita Sofia2, Nur Uddin 3 and Ika Retnaningtyas4,

1-2Universitas Pembangunan Jaya, Jalan Cendrawasih Raya Blok B7/P, Sawah Baru, Kec. Ciputat, Kota Tangerang Selatan, Banten 15413
3Directorate General of Taxes, Ministry of Finance, Jl. Gatot Subroto No.7, RT.7/RW.1, Senayan, Kec. Kby. Baru, Kota Jakarta Selatan, Daerah Khusus Ibukota Jakarta 12190

Abstract

This paper investigates the impacts of manufacture^s social identity on their tax attitudes, and how these effects on firm^s tax compliance. We find that membership and identity affect their firm^s tax compliance, but not for private collective self-esteem and public collective self-esteem. Overall, dependence on the community and stakeholder views on corporate identity are considered important by companies in order to increase public trust. Meanwhile, private and public collective self-esteem is no longer the key. It implies that the former is more likely to have a higher cost of tax collection to represent tax compliance, which may restrict funds for their public sector and adversely affects its functionality. This is consistent with the previous findings that identity social impacted tax compliance, instead of self-esteem.

Keywords: Tax Compliance, Identity Social, Membership, Community, and Self Esteem

Topic: Business, Corporate Governance, and Accounting