Taxation Ethical Issues: Perspectives of Tax Professionals in Indonesia

Andi Ina Yustina, Irana Hertiningtyas

Abstract


This study aims to identify the ranking of taxation ethical issues in terms of frequency of occurrence and importance based on the perspectives of tax professionals. Additionally, this study also examines the ethical climate of tax professionals in their practice. Questionnaires were distributed through a web-based survey and seminar. One hundred and seventy-six useable questionnaires with a 29% respondent rate were analyzed and the results showed that tax avoidance is perceived as the most important and frequent issue in Indonesia. Comparing the top 10 rankings of importance and occurrence issues, there are eight issues that are included in both of the rankings, such as continuing to act, reporting position, tax audit, loophole seeking, tax minimization, technical competence, supervision of audit, and tax avoidance. The results also demonstrated that the examination of tax professionals’ ethical climate through peer reviews revealed that tax professionals have been living in an environment that they considered ethical, even though they believe that many opportunities exist for them to do unethical actions.  

Keywords


ethical issues, tax professionals, tax consultant, tax avoidance, Indonesia.

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DOI: http://doi.org/10.33312/ijar.503

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