Legal Certainty and Ease of Administration to Increase Tax Compliance: Discourse on Indonesia's Tax Amnesty Program in Regional Office Area, Directorate General of Taxes East Java 1, Period 2016.

Research Objective: This study is aimed to evaluate the appropriateness of the tax amnesty program in order to increase tax compliance. Background: Based on the research of Enste and Schneider (2002), the percentage of underground economic activity in developing country including Indonesia reaches 35-44% of GDP. This indicates that the taxes arising from such activities are not reported in tax returns. Therefore, the thought of putting on the unpaid tax through the program of tax amnesty came up. The ultimate goal of the program is to increase tax compliance in the future. However, the implementation of the program requires a guarantee of legal certainty for tax payers from being charged with crimes or other demands. Then, the rule of law must be supported with the ease of administration in running the program. Design/Methodology/Approach: This study uses a quantitative approach where ordinary least square (OLS) is applied. Samples taken for this study are the tax payers joining tax amnesty program in Regional Office Area Directorate General of Taxes East Java 1 period 2016. Findings: It is found out that legal certainty and the ease of administration has the influence to increase tax payer's compliance. Tax amnesty is a national reconciliation movement of taxation stipulated in Law number 11, Year 2016, to guarantee legal certainty for taxpayers. Slogan "Claim, Redeem, Relief" is a symbol that is captured by the taxpayers that the tax amnesty will provide ease of administration for taxpayers. The end of result, gives both the willingness to increase tax compliance for the future. Originality/Value: First, this study uses Indonesia as a setting of a developing country where it has underground economic activity in large numbers whilst at the same time tax revenue is still quite vital in generating country revenue. Second, this study provides feedbacks to the authority bodies related to the appropriateness of the tax amnesty program in order to increase Tax Payer Compliance. Finally, this study adds to the current debates related to the pros and cons associated with the existence of a tax amnesty program in developing country. [ABSTRACT FROM AUTHOR]

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