Scholarly article on topic 'The Concept of Gratitude from the SMEs Owners in Bali to Address the Income Tax Evasion'

The Concept of Gratitude from the SMEs Owners in Bali to Address the Income Tax Evasion Academic research paper on "Economics and business"

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{"Gratitude Concept" / "Income tax to SMEs" / " Yadnya "}

Abstract of research paper on Economics and business, author of scientific article — Ni Putu Eka Widiastuti, Eko Ganis Sukoharsono, Gugus Irianto, Zaki Baridwan

Abstract This study aims to uncover the meaning of accountability to the state of SMEs owners as tax payers in Bali. This transcendental phenomenological study is similar to the thought of Edmund Hussrel, which is to reveal the meaning behind informants’ experience of taxpayers who are performing yadnya. The data were obtained through in-depth interviews and observation as strategies to reveal the reality of informants in carrying out religious rituals and in carrying out their business and taxation duties to the country. Gratitude concept is an implementation of yadnya containing the value of justice, the truth, and sincere.

Academic research paper on topic "The Concept of Gratitude from the SMEs Owners in Bali to Address the Income Tax Evasion"

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Procedia - Social and Behavioral Sciences 211 (2015) 761 - 767

2nd Global Conference on Business and Social Science-2015, GCBSS-2015, 17-18 September

2015, Bali, Indonesia

The Concept of Gratitude from the SMEs Owners in Bali to Address the Income Tax Evasion

Ni Putu Eka Widiastutia*, Eko Ganis Sukoharsonob, Gugus Iriantoc, Zaki Baridwand

a Economic Faculty, UPN "Veteran", Jakarta-Indonesia. b,c,d Economic and Business Faculty, Brawijaya University, Malang-Indonesia


This study aims to uncover the meaning of accountability to the state of SMEs owners as tax payers in Bali. This transcendental phenomenological study is similar to the thought of Edmund Hussrel, which is to reveal the meaning behind informants' experience of taxpayers who are performing yadnya. The data were obtained through in-depth interviews and observation as strategies to reveal the reality of informants in carrying out religious rituals and in carrying out their business and taxation duties to the country. Gratitude concept is an implementation of yadnya containing the value ofjustice, the truth, and sincere. © 2015 The Authors.PublishedbyElsevierLtd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.Org/licenses/by-nc-nd/4.0/).

Peer-review under responsibility of the Organizing Committee of the 2nd GCBSS-2015

Keywords: Gratitude Concept, Income tax to SMEs, Yadnya

1. Introduction

Innovation policy of the government of Indonesia issued Article Number 46 In 2013 valid July 1, 2013 under the spotlight of society. Innovation policy in terms of changes in income tax rate to the taxpayer SME owners. Innovation policy as an alternative to seeking a source of potential income tax revenue. The other reason, because SMEs accounted for 60% of gross domestic product in 2012, employment and distribution of development outcomes (Wibisono, 2012; Ermalia, 2013).

SME owners calculating income tax rates to 1% of the turnover of each month and are final. Where previously, the

* Corresponding author. Tel 62-089693005291; Fax 62-0217692856. E-mail address:

1877-0428 © 2015 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (

Peer-review under responsibility of the Organizing Committee of the 2nd GCBSS-2015 doi:10.1016/j.sbspro.2015.11.101

calculation of income tax derived from net income before taxes. This raises the innovation policy of passive resistance from owners of SMEs as the impact of changes and rates of tax collection techniques (Martin, 2011). Passive resistance of SME owners is very reasonable because if the business activities at a loss they still pay a final tax.

SME owners as religious people who have additional income and live in a country, performing the duty of religious donations also have an obligation to the state in taxes. Their separation within the individual as religious people who do tax evasion are not cause individual errors itself, but there are other individual role. There are also individuals who have the perspective to make tax compliance to the state as a form of accountability. Their perspective is very rational because there is the role of government in regulating human beings in a country.

As well as Balinese Hindus perform rituals to God (RSI yadnya) which is based on the truth of dharma (Gingsir, 2012), the ceremony has a philosophy that Man has an accountability to God through the teacher's role or government's role in pay tax. For Balinese Hindus to pay dana punia as donation, For Muslims to pay zakat as a form of accountability to demonstrate the legitimacy of the man himself (Triyuwono, 2006: 53) and to Christians to pay donation (perpuluhan-Indonesia Language) as accountability to God through Caesar as stated in the book of Matthew (22: 17, 21) (Mc Gee, 2006).

According to Wardana and Supriyadi (2006) philosophy rsi yadnya a memorial as gratitude for the role of the teacher or in those who have passion, knowledge and regulations. Designation of teachers not only for teachers in the school, but the term teachers can be divided into four, namely (1) Guru rupaka- teachers are parents, (2) Guru Pengajian- the teacher who gives science in schools and religious leaders, (3) Guru wisesa- the teacher is for the government,(4) Guru swadaya- teacher is God Almighty.

Hindus in Bali is very obedient in performing religious rituals as a form of gratitude and respect to God, and became one of the island with the largest number of SMEs in Indonesia.

SME owners perform ritual activities yadnya with discipline as a form of social consciousness (Raharjo, 2011). The impact of SME owners's discipline are increasing of awareness balanced to religion and state. As meaning contained in RSI yadnya ritual. The objective of this article is to uncover the awareness of SME owners who perform ritual activities-yadnya to obey the rules of the country-income tax.

2. Literature Review

2.1 Yadnya (Hinduism Philosophy) in Creating Spiritual Awareness

Yadnya has the meaning of being accountable or holy sacrifice that must be made by the Hindus who are still alive in the world. Hindu SME owners do yadnya according to their abilities (Bidja, 2011: 6). Why is so important to implement of yadnya? Because we as humans have to constantly improve themselves achieve balance as devotion to God.

Hindu SME owners, besides conducting their business and profession, have the responsibility as human to do religious ceremony. They are aware that this responsibility is a cultural value that is closely related to daily religious ritual, as a form of gratitude for God, the creator of universe. The gratitude of Hindu SME owners is implemented in holy ceremonies, which are done daily or in special occasion (Widiastuti, et al. 2015). This form of responsibility is called as panca yadnya. This ceremony, which has been done for generations, is divided into five parts; they are accountability to God (Dewa Yadnya), accountability to the ancestor (Pitra Yadnya), accountability to other people (Manusia Yadnya), accountability to pinandita/Maha Rsi/Guru (religious leader/scholar/teacher in Hinduism (Rsi Yadnya), and accountability to the universe (Bhuta Yadnya).

This series of responsibility shapes the social structure based on the awareness, willingness, togetherness, and empathy among people, not only among Hindus but also between Hindus and people of other religions. The holy book of Veda stated "You have to understand the Dharma through various ceremonies to explore its symbolic significance (Saibaba, 2005). Anything done with high dedication and self-reliance to god is an element of Dharma, which will take human to true self-awareness. A scholar of Hinduism, living in Jakarta, (Gingsir, 2006), stated that: "The implementation of ritual ceremony of Hinduism was affected by culture and art mentioned in ancient literature. It came as the result of Balinese cultural civilization. At the beginning, it was affected by the culture of Majapahit, which expanded its influence to Bali, so, at that time, several ritual religious ceremonies emerged".

Based on the statement above, it can be concluded that the evolution of culture and art changes the behavior of

people to be more responsible and grateful, not only to God but also to the manifestation of God's creation.humans, as living beings, must be grateful for their existence and believe the role of God and their ancestor in their lives. This feeling of gratefulness can be embodied in the form of responsibility or accountability (Widiastuti, et al. 2015).

Yadnya is a form of human's accountability based on the principle of awareness, willingness, togetherness, and empathy toward others. It is done to create harmony between words, deeds, and thoughts, called as tri karya parisudha (three forms of chastity). SME owners carry out Yadnya sincerely and voluntarily.

2.2 Transcendental Phenomenology of Edmund Husserl (1859-1938)

An expression of Alfred Schutz (1899-1959) is interesting about human action to be listened to, in which he stated that human actions are part of position in society, so that a person's actions could be just a camouflage or imitation of the actions of others around him (Kuswarno, 2009: 38).

According to scholars of social, Schutz was able to translate abstract ideas of Husserl, that "the discovery of the meaning and nature of the experience - (Things in Themselves)" became the focus of interest Husserl in exposing the core meaning of the object on the stage of transcendental consciousness (transcendental phenomenology). The object that we want to know must be observed spiritually then the subject back to the self-consciously. Empirical things placed on the brackets, so that left the awareness of the activity itself be the subject of pure consciousness (transcendental). Transcendental awareness is built through intuitive knowledge in the direct sense. The essence of which is ideal for physical and mental, "pure" free of charge empirical (Crowell, 2006, in Dreyfus and Wrathall, 2006).

Siewert (2006: 81) in Dreyfus and Wrathall (2006) clarify the concept of consciousness as the foundation of the philosophy of phenomenology by Hussrel. Namely conscious is whatever is a part of someone's occurent experince-what belongs to someone's "stream of consciousness". Kuswarno (2009: 41) mentions that Husserl thinking about "I" there must be a balance with the "I" in the outside world. At the option of the taxpayer awareness of SME owners, It needs to be studied with regard to the principle yadnya (devotion).

3. Research Methods

3.1 Determination of the Location, Subject, and Object Research

Location in a qualitative research is an important element because the election is expected to answer the problems in research. Starting the beginning of the study related to the exploration of the idea of taxpayer awareness of SME owners when researcher visited the owners of SMEs sculpture in the village Bedaulu Blahbatuh, Gianyar.

Researcher conducted in-depth interviews with SMEs owner named Miss. Ayu. According to Miss. Ayu explanation that she was having problems of consciousness to perform tax obligations based on voluntary (interview 20 April, 2011). Although, SMEs owner in the daily conduct sacred responsibility to God in yadnya activities.

Looking for information on SMEs begins with finding the data how many owners of SMEs in Gianyar, Bali. Information about the number of owners of SMEs through financial Accountability Report 2011. Apparently the Regent of Gianyar Regency has the largest number of SMEs compared to other districts in Bali. Gianyar regency consists of seven districts, namely: District Payangan, District Tegallalang, Gianyar subdistrict, District Tampaksiring, District Ubud and Blahbatuh. Then the researcher sets out some criteria for SME owners who become subjects in this study.

a. The owner of SMEs is Hindu, based on its business activities to produce or trade for the needs yadnya activities with a total turnover per year in the category of small-scale enterprises (SMEs Darma, the owner is Mr. Wit) and medium (SME Basur, the owner is Mr. Wayan).

b. Conducting accountability as Hindus every day is a ritual of the five yadnya, so the principle wants to be appointed as a philosophy that has held an informant to uncover the reality of consciousness SME owners to tax obligations.

c. Has a registration number of tax payer and has been doing tax obligations as a business owner, especially income tax.

The Experiences of researcher in obtaining location become an important information to be disclosed. Some business owners who have visited by researcher with a license from the Brawijaya University. Their products are sold

not to the needs of ritual activity yadnya. Business names including Duck Restaurant Tepi Sawah on Jalan Raya Ubud, Painting Gallery Nyoman and Hardisk supermarket, Gianyar. The object of this research is awareness in performing the obligations to the state in taxes. In revealing the meaning of taxpayer awareness of SME owners who adhere to the principle yadnya.

3.2 Data Analysis

There is a concept of methods as the unit of analysis in Husserl's phenomenology to uncover the meaning of the object in accordance awareness of the subject, namely: intentionality; noema, noesis, hyle (experience-in Greek); intuition; and intersubjectivity. The unit of analysis starts from intersubject in consciousness (Intentionality- the directedness of consciousness), so that the pleasure (interest), initial assessment, and expectations of the object to be a factor that influences intentional (Follesdal 2006 in Wrathall and Dreyfus, 2006). Meaning in the concept of intersubject very clear because the combination of real objects with objects in perception and even better if it formed through noema, noesis, and hyle.

Furthermore, Husserl put forward the concept of intuition as a unit of analysis to uncover the phenomenon based on pure consciousness. This concept is taken from Descartes Husserl, namely the ability to distinguish "pure" and "to consider" (Dreyfus and Wrathall, 2006: 11; Kuswarno, 2009). Intuition is able to guide man to get rid of the impression of the everyday knowledge and scientific behavior. It means that when we interpret the object, then it indirectly also understand the intuition inside.

There are several procedures in the process of giving the meaning of objects in the approach of transcendental phenomenology. Procedures that can be used is to epoche on reduction methods. Reduction is the process of sorting and filtering the data if it is not in accordance with the meaning that would answer the problem of research. Reduction stages in the research consisted of a reduction eidetic phenomenology, transcendental reduction, and reduction of phenomenology (Follesdal, 2006: 109-113 in Dreyfus and Wrathall, 2006).

4. Results And Discussion

After passing through the step of the procedure of analysis, namely transcendental phenomenology epoche and reduction. The results of the discussion below is the step of analyzing the meaning according conscious experience of informants, namely:

4.1 Gratitude can do to Religion and State Accountability

Thus the accountability of individual human beings as creatures of Almighty God's creation and its position as part of the country's society. However, there are people who are not willing to contribute to each other. As with any form of tax levies to the state due to the impact of reduced income or property gained.

On the other hand, SME owners do not want to pay taxes if the owners of SMEs obtain income or assets from the work and collected for a long time. It thus because of the strong desire of the property owned, so the desire to provide income in part requires a greatness of soul. Mr. Wayan expressed about the balance undergoing religious ritual activities have an impact on the increasing spiritual values, "the tax is burdensome, but if we are willing as running yadnya all the burden becomes lighter". Mr. Wayan realize sometimes make mistakes, asking his tax advisors to manage the amount of tax to be paid. "The desire to pay taxes, so as gratitude as dana punia (religious donations), it makes life more calm, fortunately few are important blessing", according to his confession.

Table. 1 Meaning of Gratitute undergo compulsory tax in accordance awareness of SMEs owners that embrace the principles of yadnya

Old meaning

New meaning

1. Tax as expense / deduction income (or profit TURNOVER Net) Reduces Equity owners

1. Tax as gratitude for the additional economic capabilities as well as the dana punia merte mesari principles and merte mesabeh.

Adding to the owner's equity and business entities

2. To avoid income Reduced. Sometimes they do practice tax planning 5. As gratitude and devotion to the owner's life (God Almighty), in practice accountability sincere devotion, truth, and justice.

6. The purpose ofdoing tax plan is to Avoid pay tax. 3. * Avoid the desire to undertake tax avoidance or tax evasion. * Protected us from the fear of karma, quiet life, improve physical and mental quality.

7. It is material accountability consciousness 4. It is Spiritual transcendence consciousness.

7.1 The Value of Gratitude in Tax Compliance.

A person who does accountability to the religion and the state due to increased economic capacity. It is not independent of the person's ability to manage additional economic capabilities. It is balance accountability, what if for religious purposes and the country has made in accordance with the basic principles of gratitude.

Accountability for religious purposes does notjust perform a series of ritual process, if the Balinese Hindus call it -yadnya. There is accountability shaped religious donations either mandatory or voluntary, as a form of gratitude to God for excess fortune owned. Liability for the destination country governed by the rule of incumbent governments, so mandatory to finance state expenditure, and there are penalties if people are in violation of the rules of the government.

Penalties for negligence liability to the state there are simple, such as a reprimand to fines and imprisonment. Penalties for omission of responsibility to the state, such as taxes imposed because the government as a regulator wants all the rules that have been enacted obeyed by citizens, especially taxpayers.

Penalties for omission of responsibility to religion is not officially regulated by law according to the rules of government power, but the people believe that there is karma accepted norm in the future. Confidence on the penalties of religion negligence accountability to more binding and more citizens to avoid negligence.

8. Conclusions, And Implications

5.1 Conclusions

Taxpayers of SME owners do donations to religious rituals and as a form submission to almighty God. SME owners have gratitude concept on additional economic capacity. It can undergo an obligation to religion and the state in balance.

The concept of gratitude is capable of forming a spiritual awareness of SME owners, so that they do not want to evade the tax. According to the experience of taxpayer -SME owners who have yadnya principle that undergoing an obligation to the state in taxes, as a form of gratitude may distribute income.

5.2 Implication

Results of this study have implications for the government in terms of making the income tax policy to increase spiritual awareness of SME owners. The concept of Gratitude of the taxpayer-SME owners can change the material consciousness into spiritual consciousness. With the concept of gratitude able to increase the participation of SME owners to their religion and country.


Ahimsa : abstinence violence

Artha : wealth

Banjar : social unity by region

bhutaYadnya : human responsibility to make sacred sacrificing as gratitude by preserving nature

dana punia : voluntary religious donations

darma : truth

dana darma darma agama darma negara dewaYadnya manusaYadnya menyame beraye pancaYadnya pitraYadnya pura

rsi Yadnya

tatwam masi tri hitakarana tri kayaparisudha Yadnya

: compulsory religious donations

: correctness of carrying out command based on the Vedas : correctness of carrying out obligations under the rules of the state : human accountability as a gratitude to god

: accountability of human who live to perform religious rituals to other human as the next generation : relationship of fraternity

: five religious rituals performed Hindu people in the effort to achieve perfection in life : accountability of living people to perform sacred offerings to ancestral spirits of deceased family member : the worship places for Hindus in Indonesia

: accountability living people to perform religious rituals to maha rsi, guru, andpinandita : correct behavior : philosophy

: the concepts of i am you and you are I

: the relationship concept of human and god, human and human, and human with nature : harmony between noble words, deeds and thoughts

: to presents, to sacrifice, to serve, to do virtue with sincere, true and fair devotion


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