Factors maximizing tax auditors’ performance: Study on Indonesian Directorate General of Taxes

Abstract

The purpose of this study is to investigate factors that affect tax auditors’ performance, including the moderating role of work environment. The saturated sampling technique was employed as a sampling technique. Of the 166 tax auditors of the Directorate General of Taxes (DGT) in Riau Region as respondents, 132 questionnaires were returned, fulfilled the requirements, and were complete. Multiple regression analysis was used to test the first, second, and third hypotheses. However, moderated regression analysis was used for the fourth, fifth, and sixth hypotheses testing. The multiple regression analysis results showed that organizational commitment and job satisfaction have a positive effect on the tax auditors’ performance with a p-value for each 0.014 and 0.006. This indicates that the higher the organizational commitment and job satisfaction of the tax auditors, the better their performance. Meanwhile, job stress was found to have a negative effect on the tax auditors’ performance (p-value is 0.006); therefore, the higher the job stresses, the lower the performance. The results also found that work environment as a pure moderator strengthens the effect of organizational commitment on tax auditors’ performance (p-values of Z and X1Z each are 0.279 and 0.000). Meanwhile, work environment as a quasi-moderator also strengthens the effect of job satisfaction with p-values of Z 0.000 and X2Z 0.580. Work environment also moderates and strengthens the effect of job stress on the tax auditors’ performance with p-values of Z 0.000 and X3Z 0.597.

Exploratory Factor Analysis for Items Measuring of The Tax Auditors’ Performance

“…Tax auditors are expected to have optimal performance to meet the government's goal of maximizing taxes. According to Ratnawati et al (2021), a good tax auditor who can perform promptly, correctly and able to explore any potential taxes to increase the government revenue from the taxes. In relation the tax auditors' performance, tax auditors have to conduct their tasks in properly manner in line with the objective of tax audits, and also in accordance with the laws (Pratama et al, 2019).…”