The Role of Risk Preference in Moderating the Effect of Tax Sanctions and Administrative Modernization on Taxpayer Compliance

ABSTRACT : This study aims to determine the effect of tax sanctions and administrative modernizationvariables on taxpayer compliance moderated by risk preference at KPP Pratama in Central Jakarta. Thepopulation of this study is private persons at KPP Pratama in Central Jakarta with a sample of 100 people.Method taking sample which used in study this in group in the non-probability method, where each element inthe population do not have the same opportunity or opportunity to be selected as a sample. Samples were takenusing incidental sampling technique. This study used primary data, data collection was carried out in the form ofa closed questionnaire with a Likert scale to all research respondents. Data analysis in this study uses the PartialLeast Square (PLS) approach and the results of hypothesis testing show that tax sanctions and administrativemodernization have an effect on mandatory compliance, while risk preferences are not able to moderate theeffect of tax sanctions and administrative modernization on taxpayer compliance.

KEYWORDS : Taxpayer Compliance; Administration Modernization; Risk Preference; Tax Sanctions