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Lury Sofyan

Room: A2 (South Building)
Tel: +44 (0) 115 8467995

Current Status: Registered
Year of Registration: 2016
Expected Completion Date: /09/2019

Primary Funding Source:
Indonesia Endowment Fund Scholarship

Research Topic:
Article based thesis
A. Inequality in Asset Market Experiment B. Field Tax Compliance Research Policy Intervention in Indonesia

Research Details:
A. Inequality in Asset Market Experiment
How inequality affects asset market is still a vacant area to study. My study is to incorporate inequality in Asset Market Experiment by introducing different amount of endowment at the beginning of the period. I use standard SSW asset market experiment and aim to answer this question
1. Does inequality of endowment affect bubble/crisis? This is to understand how different level of inequality endowment will influence bubble/burst.
2. Does inequality of endowment in AM creates behavioral bias & alter risk preference as previous literature mentioned?

B. Field Tax Compliance Research Policy Intervention in Indonesia In developing country field tax experiment to understand taxpayers behaviour is limited (Moore, 2013) nor thus the policy treatment analysis approach. Besides this research gap, Feld & Frey (2007) stressed that existing literature is still inconclusive on how to understand social norm/moral suasion role in increasing compliance rate. Gangl et al (2014) also posited that most studies focus on individual taxpayers and overlooked corporate taxpayers' behaviour. On the other hand, study that focus on Value Added Taxes is also very limited (Ariel, 2012; Pomeranz, 2013). Other vacant areas to explore are research on tax debt payment compliance and the effectiveness of a phone call approach to increase tax compliance. My study is aimed to fill this gap an answer THEME A COMPLIANCE INTRINSIC MOTIVATION
A.1 Research Objective
To understand the sustainability of compliance intrinsic motivation to comply to tax rule.
A.2 Research Question
Does higher intrinsic motivation to pay tax sustain?.
A.3 Hypothesis
There is statistic difference of compliance between taxpayers who has intrinsic motivation compare to taxpayers who don't.
Intrinsic motivation to pay tax is important in understanding tax evasion (Feld & Frey, 2007). If intrinsic motivation to pay tax can be perceived as proxy of intrinsic honesty, then intrinsic motivation is important to lower tax evasion since Intrinsic honesty maintain people from breaking norms and rules (Gächter & Schulz, 2016). Accordingly, higher intrinsic motivation to pay tax will contribute to higher tax compliance. Nevertheless, it is not clear whether high intrinsic motivation to pay tax sustain in a low compliance rate environment.
This section allowed us to analyse different group who have different intrinsic motivation to comply with tax rule. It is done by comparing two different groups. The first group is a group of taxpayer who register them self voluntarily. They fill a registration form and follow all the registration process by them self. Hence it is safe to assume that this group have intrinsic motivation to comply to tax rule.
The second group is a group of taxpayers who are registered by force. This second group at first are not registered as taxpayers. They become registered after the tax office found that they have income exceeding the limit amount to become a taxpayer . For that reason, it is assumed that this group has not featured with intrinsic motivation to comply to tax rule.
This study analyses how different intrinsic motivation sustain through time by comparing the level of tax compliance of these two different groups in the year afterwards the registration.

B.1 Research Objective
To understand how reminder can changer taxpayers' behaviour in complying VAT rules
B.2 Research Question
Do taxpayers' behaviour in VAT influenced by email reminder?
B.3 Hypothesis
There is statistic difference of compliance in VAT rules comparing group who received email reminder and group who didn't.
This section complement understanding of tax behaviour in a more holistic way by including VAT compliance rate as the centre of discussion such as Ariel (2012) and Pomeranz (2013). VAT development has been remarkable and has been adopted from 47 countries to over 140 countries (Bird & Gendron, 2007). Different from income tax, Value added tax is an indirect tax which refers to levies on production or sale of commodities (Due, 1964) . This indirect tax definition could affect taxpayers' behaviour to act differently from their behaviour to income tax. It is therefore worthwhile to investigate this area.
This section analyses how policy intervention in form of email reminder change taxpayers' behaviour to comply with Value Added Tax rules

Research Supervisor/s: Pia Weiss, Lina Song and Thorsten Chmura

Division: Industrial Economics

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