The Effect of Taxpayers Willingness and Banking Companies Financial Performances on Taxpayers Compliance Behavior Mediated by Optimal Tax Reporting (A Study from the Taxpayers of Banking Companies in Indonesia Stock Exchange for the Period of 2013-2015)

Abstract

The objective of this study was to examine the effect of taxpayers willingness and financial performances of the banking companies on compliance behavior of corporate taxpayers mediated by optimal tax reporting, by referring to stakeholder theory, cognitive behavior theory, ability to pay theory, willingness to pay theory, and performance benchmarking method. The population was 42 active banking companies listed on the Indonesia Stock Exchange during the period of 2013-2015. A total of 33 samples of the banking companies was collected using the purposive sampling method. The analysis method used was Partial Least Square (PLS). Data were collected by using the technique of documentation taken from the audited banking companies' financial statements of 2013-2015 and from the summary of financial statement listed on the Indonesian Capital Market Directory. The results of the study found a significant effect that the optimal tax reporting mediated the effect of taxpayers willingness and banking companies’ financial performance on the compliance behavior of the corporate taxpayers (extending the theory of willingness to pay). But, the financial performances of the banking companies did not have a significant effect on the compliance behavior of the corporate taxpayers (rejecting the theory of ability to pay).