Relationship between Taxpayers and Authorities against Tax Compliance during the Covid’19 Pandemic

Purpose: This study aims to examine the effect of procedural fairness, trust, and commitment factors on taxpayer compliance. This study also analyzes the commitment factor as a mediator in the relationship between procedural fairness and trust in tax compliance.
Design/methodology/approach: Research respondents are individual taxpayers who work as employees and entrepreneurs. A total of 102 questionnaires to be analyzed using Partial Least Square
(PLS).
Findings: The results of this study prove that high taxpayer trust and commitment have a positive
effect or can increase taxpayer compliance. However, this study demonstrates that procedural fairness does not affect tax compliance. The results of the mediation test show that commitment can be an intermediary in the relationship between procedural fairness and trust in taxpayer compliance. Overall, the results of this study explain that tax compliance is strongly influenced by the commitment factor, either directly or indirectly as a mediating variable.
Originality/value: The implication of this research proves that commitment is an essential factor in
increasing taxpayer compliance. In the Covid 19 pandemic conditions, taxpayers continue to carry out tax obligations because they commit as citizens. Therefore, the government and tax authorities need to build taxpayer commitment as part of a strategy to improve taxpayer compliance and maintain effective long-term relationships.