Eka Fauzihardani, Eddy R. Rasyid, Efa Yonnedi, Hefrizal Handra
The implementation of a multi-discipline point of view to investigate contextual factors in ethical tax decision is still under-researched. Using the Psychology and Economics framework, the current study aims to expand our understanding regarding the effect ofa government-contextual factor on tax decisions by examining the impact of audit probability and trust in government on the relationship of ethical judgment and ethical tax decision. The research method is using purposive sampling; a closed-ended questionnaire design was distributed by an electronic-based survey method to obtained primary data. The sample is 102 Indonesian tax professionals, including tax consultants, public accountant, and internal accountant,who participated in the current study. To test the hypothesisusing Partial Least Square withSmart-PLS3.28. Results show strong support for a direct effect of ethical judgment, trust in government, and audit probability on ethical tax decisions, meanwhile the proposed moderating effect of trust in government and audit probability was not confirmed. The current research is one of a few studiesusing a multi-discipline perspective toinvestigatethe contextual factor effect on ethical tax decisions. Thus wecontribute to fill the lack in existing ethics and taxliterature. The finding provides essential implications for tax regulators that Behavioral-Psychology is a significant consideration in tax policy design. Furthermore, the current research offers unique empirical evidence to understand the ethical decision in the tax domain froma broader perspective after the post period of the Indonesian tax amnesty program in 2016. © 2020 SERSC.
Andalas University, Indonesia; Universitas Negeri Padang, Indonesia
