Achmad MAQSUDI, Tri RATNAWATI, Slamet RIYADI / Journal of Asian Finance, Economics and Business Vol 8 No 6 (2021) 0089–0095 89 89 Print ISSN: 2288-4637 / Online ISSN 2288-4645 doi:10.13106/jafeb.2021.vol8.no6.0089 Socialization, Service and Knowledge Matter with Taxpayer Compliance: An Empirical Study in Indonesia Achmad MAQSUDI 1 , Tri RATNAWATI 2 , Slamet RIYADI 3 Received: February 20, 2021 Revised: April 20, 2021 Accepted: May 02, 2021 Abstract Tax collections from land and building (axes (LBT) have particularly suffered in East Java and as a result, the provincial government is still looking at a big shortfall in tax revenue. East Java is facing a silent fiscal crisis owing to a shortfall in tax revenues, and the government’s budget suggests it may have grossly underestimated the problem. This research was conducted to prove the effect of taxpayer awareness as a mediator (mediating/intervening variable) on the impact of tax socialization, service quality, and taxpayers’ knowledge on taxpayer compliance. The sampling technique used is the consecutive method by taking a sample of 400 taxpayers in East Java province, Indonesia. Using the help of AMOS software version 26, the statistical analysis method used is the Partial Least Squares-Structural Equation Model, with the Generalized Least Square Estimation Parameters. Based on the research results, tax socialization, service quality, and taxpayer knowledge have a positive impact on taxpayer compliance directly. Furthermore, there is an indirect positive impact relationship between tax socialization, service quality, and tax information on taxpayer compliance through taxpayer awareness as a mediator, but only on a small scale. Tax authorities are expected to increase the taxpayers’ awareness, through increasing tax socialization, service quality, and taxpayer knowledge, so that taxpayers are more compliant in paying LBT. Keywords: Tax Socialization, Service Quality, Tax Knowledge, Taxpayer Awareness, Taxpayer Compliance JEL Classification Code: H71, H20, G20 time investing in critical areas for economic growth and development. One of the most frequently debated topics is the role of taxes as a source of revenue for government spending. Government spending refers to money spent by the public sector on the acquisition of goods and provision of services such as education, healthcare, social protection, and defense Taxes are collected through corporate and individual income taxes, as well as through the sale of goods and services. The nature and composition of government expenditure influence economic growth and social welfare. Therefore, government expenditure, which influences national GDP, also influences government tax revenues. However, because the tax is viewed as a burden on society, some people have chosen to avoid paying taxes. In terms of goods and services, tax is seen as a contributing factor to rising prices. The growth of the Indonesian economy is partly funded by increased state expenditure. This can be noted in the increased number of facilities which are numerous and costly. The government relies on tax revenue as a major source of development funds so that taxpayers are expected to have high tax compliance. However, the reality reveals that most 1 First Author and Corresponding Author. Lecturer, Faculty of Economics and Business, University 17 August 1945 Surabaya, Indonesia [Postal Address: Jln. Semolowaru No. 45, Surabaya, East Java, Indonesia] Email: amaqsudi021@gmail.com 2 Lecturer, Faculty of Economics and Business, University 17 August 1945 Surabaya, Indonesia. Email: triratnawati@untag-sby.ac.id 3 Lecturer, Faculty of Economics and Business, University 17 August 1945 Surabaya, Indonesia. Email: slametriyadi10@untag-sby.ac.id © Copyright: The Author(s) This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. 1. Introduction One of the most widely discussed topics in economics is taxation. Tax, as we all know, is a significant source of government revenue, and the money collected will be used for development (Edame & Okoi, 2014). Central to the successful implementation of fiscal policy and overall management of the public sector is the tax system, which is a combination of tax policy and tax administration. If tax revenue is lower, the government will have a difficult