How Perceived Fairness Influence Tax Compliance: Trust as the Key Mediator

Abstract

This study aims to examine the influence of perceived fairness on tax compliance, with trust as a mediating variable. This research uses a quantitative method with a survey of 62 taxpayers on Bengkalis Island. Data were processed using WarPLS 7.0. The research results indicate that the perception of fairness can increase taxpayers' tax compliance. Perceived fairness can also increase trust, but trust in the government does not increase tax compliance. There was no mediating effect in the findings of this study. The government and tax authorities must ensure that tax policies, procedures, and enforcement are implemented fairly and benefit the public. Additionally, openly reporting how tax funds are used will increase public trust in the government, which can lead to better and more sustainable tax compliance.