Correlation of Tax Behavior with Tax Compliance

Tax as the biggest source of state revenue is an important issue because it is a very large part of the country's management resources. Compliance is mandatory for every taxpayer to increase state revenues and provide welfare for society. This study aims to analyse the behaviour of taxpayers in complying with tax regulations. Data were obtained using a survey questionnaire from 100 accidentally sampled respondents. Moderated regression analysis and factor analysis were used to analyse the data. Results revealed that understanding tax regulations, quality of tax authorities’ services and tax sanctions have positive effect on personal tax compliance. Risk preference did not moderate the relationship between understanding tax regulations, the quality of tax services, and tax sanctions to taxpayer compliance. The state may explore various ways in disseminating the latest tax regulations, such as procedures for calculating and reporting tax payable, applicable tax rates, and sanctions or fines that apply so that the public or taxpayers will know and understand the applicable tax regulations. The public may be enlightened about applicable tax regulations so they may be motivated to fulfil their obligations as taxpayers.