Taxpayer's Commitment to Mediate Influence Trust in Taxpayer Loyalty in Lubuk Pakam District

Abstract

This study aims to analyze the role of taxpayer commitment in mediating the influence of trust on taxpayer loyalty in Lubuk Pakam District. The background of this study is based on the phenomenon of low taxpayer loyalty, although the level of tax awareness shows an increase. This study uses a quantitative approach with a survey method of 97 respondents determined using the Slovin formula from a population of 3,875 taxpayers. Data analysis was carried out with Partial Least Square (PLS) through validity, reliability, R-square, and path analysis. The results showed that trust had a positive and significant effect on loyalty (t = 4.335; p = 0.000) and taxpayer commitment (t = 14.855; p = 0.000). Furthermore, commitment had a positive and significant effect on loyalty (t = 7.488; p = 0.000). The indirect influence test proved that commitment was able to mediate the influence of trust on loyalty (t = 6.197; p = 0.000). The R-square value of 0.584 on commitment and 0.807 on loyalty indicates that the model has strong explanatory capabilities. This study concludes that taxpayer loyalty in Lubuk Pakam District can be effectively increased through strengthening trust mediated by commitment. Thus, tax authorities are expected to strengthen transparency, integrity, and service quality to build trust, which in turn is able to encourage the formation of long-term commitment and loyalty of taxpayers.