The Effect of a Risk-Based Audit Approach on Tax Compliance Intention: The Moderating Role of Procedural Justice
DOI:
https://doi.org/10.61994/equivalent.v4i1.1818Keywords:
Risk-Based Audit, Procedural Justice, Tax Compliance Intention, Tax Compliance, PLS-SEMAbstract
Tax compliance remains a strategic challenge in self-assessment tax systems, particularly among individual taxpayers and micro, small, and medium enterprises (MSMEs), where compliance levels tend to fluctuate. In response to this challenge, the Indonesian tax authority has increasingly adopted a Risk-Based Audit (RBA) approach, which prioritizes audit activities based on taxpayers' risk profiles to improve enforcement efficiency and effectiveness. However, the impact of RBA on taxpayers' compliance intention is not solely determined by enforcement mechanisms, but also by taxpayers' perceptions of procedural justice applied by tax authorities. This study aims to examine the effect of Risk-Based Audit on tax compliance intention and to analyze the moderating role of procedural justice in this relationship. The research employs a quantitative approach using survey data collected from individual taxpayers and MSMEs registered in Medan City. Data were obtained through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS software. The analysis includes evaluation of the measurement model through validity and reliability testing, as well as structural model assessment to test the proposed hypotheses. The findings are expected to demonstrate that Risk-Based Audit has a positive effect on tax compliance intention, and that procedural justice strengthens this relationship. This study contributes theoretically by integrating deterrence theory, procedural justice, and behavioral intention perspectives within a single moderation model in the tax compliance literature. Practically, the results provide policy-relevant insights for tax authorities in designing risk-based audit strategies that are not only effective in enforcement, but also perceived as fair and legitimate, thereby fostering sustainable voluntary tax compliance.
References
Herman, L. A., Rissi, D. M., & Ramadhea J. R., S. (2023). The perception of tax compliance is influenced by procedural justice, distributive justice, and retributive justice. Journal of Competitive Accounting, 6(1), 151-162.
Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Sage.
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211.
Alm, J., & Torgler, B. (2011). Do ethics matter? Tax compliance and morality. Journal of Business Ethics, 101(4), 635–651.
Gangl, K., Hofmann, E., & Kirchler, E. (2015). Tax authorities' interaction with taxpayers: A conception of compliance in social dilemmas by power and trust. New Ideas in Psychology, 37, 13–23.
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135.
Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus voluntary tax compliance: The "slippery slope" framework. Journal of Economic Psychology, 29(2), 210–225.
Kirchler, E., Kogler, C., & Muehlbacher, S. (2014). Cooperative tax compliance: From deterrence to deference. Current Directions in Psychological Science, 23(2), 87–92.
Kogler, C., Muehlbacher, S., & Kirchler, E. (2013). Trust, power, and tax compliance: Testing the "slippery slope framework" among self-employed taxpayers. Economics of Governance, 14(2), 1–20.
Murphy, K. (2004). The role of trust in nurturing compliance: A study of accused tax avoiders. Law and Human Behavior, 28(2), 187–209.
Slemrod, J. (2019). Tax compliance and enforcement. Journal of Economic Literature, 57(4), 904–954.
Gangl, K., Hofmann, E., & Kirchler, E. (2015). Tax authorities' interaction with taxpayers: A conception of compliance in social dilemmas by power and trust. New Ideas in Psychology, 37, 13–23.
Gangl, K., Hofmann, E., & Kirchler, E. (2015). Tax authorities' interaction with taxpayers: A conception of compliance in social dilemmas by power and trust. New Ideas in Psychology, 37, 13–23.
OECD. (2004). Compliance risk management: Managing and improving tax compliance. Paris: OECD.
OECD. (2013). Co-operative compliance: A framework—From enhanced relationship to co-operative compliance. Paris: OECD.
Slemrod, J. (2019). Tax compliance and enforcement. Journal of Economic Literature, 57(4), 904–954.
Tyler, T. R. (2003). Procedural justice, legitimacy, and the effective rule of law. Crime and Justice, 30, 283–357.
Wenzel, M. (2004). An analysis of norm processes in tax compliance. Journal of Economic Psychology, 25(2), 213–228.
https://www.pajak.go.id/id/berita/penerimaan-dan-kepatuhan-wajib-pajak-sumut-i-terus-tumbuh
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Johannes Pinta Surbakti, Renny Maisyarah, M. Irsan Nasution (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
