Has the Voluntary Disclosure Program Run Optimally? Insights from a Primary Tax Office in Wates

¹ Department of Accounting for Islamic Financial Institutions, Vocational Program, Universitas Muhammadiyah, 55183, Yogyakarta, Indonesia
² Department of Banking and Finance, University of Kotli, Pakistan
³ Department of Accounting, Faculty of Economics and Business, Universitas Ahmad Dahlan, 55183 Indonesia

^* Corresponding author: puspita@umy.ac.id

Abstract

This research aims to increase taxpayer compliance with the voluntary disclosure program and to determine whether the voluntary disclosure program carried out by the Pratama Wates Tax Office is running optimally. The data used in this research were the results of interviews with 16 respondents: taxpayers, extension teams, and account representatives, as well as 32 respondents from taxpayer questionnaires. The data analysis technique used qualitative methods to analyze the level of taxpayer compliance with the voluntary disclosure program. The research results show that ways to improve this voluntary disclosure program can be achieved through socialization, sanction, and knowledge, so intense and comprehensive socialization and more emphasis on sanction and program benefits must be emphasized. High tariff sanctions will give taxpayers a sense of fear and deterrence so that taxpayers will be more compliant. Taxpayers’ knowledge must always be explored in various ways, such as regular outreach and providing comprehensive and even information. This is implied by the installation of billboards, appeal letters, special consultation places, potential stands, and distribution via email, WhatsApp, and Instagram. The voluntary disclosure program carried out by Pratama Wates Tax Office has been running less than optimally.