The Effect of Indonesian Digital Service Tax, Financial Capability on Tax Evasion

Abstract

This study aims to determine the magnitude of the effect of the application of digital service tax (DST) and financial ability on tax evasion. Sample selection was done by using the convinience sampling method. Research respondents were taxpayers for DKI Jakarta Region. The number of samples used were as many as 120 respondents. The sampling technique used was multiple linear regression analysis. The results of this study prove that the application of digital service tax (DST) has an effect on tax evasion and Financial Ability has no effect on tax evasion. Based on the findings of the analysis, discussion, and conclusions previously discussed, the authors offer the following recommendations for interested parties to take into account. (1) Since the scope of this study is only confined to individual taxpayers in the DKI Jakarta region, the next researcher searches for further research areas. There are no direct interviews conducted after the survey approach is used in the investigation. (2) In order to reduce tax evasion, the tax authorities are intensifying their efforts to socialize understanding of the application of the digital service tax (DST).
 Keywords: application of digital service tax (DST), tax evasion, financial ability