The Influence of Taxpayers’ Awareness and Compliance in Generating Local Revenue Moderated by the Government: A Case Study on the Government of Regional Mandailing Natal

Abstract

This study aims to determine the influence of taxpayers' awareness and compliance in generating local revenue moderated by the government. Data were collected from 64 Mandailing Natal Regency taxpayers from hotels, restaurants, and bird nest businesses using cluster sampling. The obtained data were analyzed using multiple regression analysis techniques with the help of the SPSS program. The result showed that the taxpayers' awareness and compliance moderated by tax governance simultaneously affect the locally-generated revenue. It also showed that taxpayers' awareness does not affect locally-generated revenue, as opposed to their compliance, which has a significant and positive effect. Similarly, their awareness moderated by tax governance has a positive effect on locally-generated revenues, as opposed to their compliance.