International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878 (Online), Volume-10 Issue-4, November, 2021
256
Published By:
Blue Eyes Intelligence Engineering
and Sciences Publication (BEIESP)
© Copyright: All rights reserved.
Retrieval Number: 100.1/ijrte.D66221110421
DOI: 10.35940/ijrte.D6622.1110421
Journal Website: www.ijrte.org
Abstract: This study aims to analyze the effect of experience on
ethical decisions and the influence of organizational ethical
culture in moderating the relationship between experience and
ethical decisions in tax consultants in the Sumatran Region
including Lampung, Bangka Belitung, Palembang and Jambi
consisting of 139 respondents. The analysis technique uses SEM
WarpPLS with the help of the WarpPLS 7.0 application. The
findings in this study, indicate that there is no significant effect
between experience and ethical decisions and in an indirect
relationship between experience and ethical decisions with
organizational ethical culture as a moderating variable showing
the results, organizational ethical culture can moderate the
relationship with a significant influence. The research has met the
requirements of the SEM-WarpPLS fit model
Keyword: Experience, Organizational Ethical Culture and
Ethical Decisions
I. INTRODUCTION
Tax consultants as agents and intermediaries between
taxpayers and tax authorities are considered a profession that
has complete tax knowledge compared to taxpayers, so that
taxpayers can exercise their rights and fulfill their tax
obligations appropriately in accordance with applicable tax
laws. Consultants are required to be able to maintain
independence, integrity and professionalism in increasing
acceptance and criticizing regulations, so that tax consultants
have a dual role (Rizki and Sawarjuwono, 2020). The
increase in tax revenues until the end of 2020 amounted to
Rp. 1,069.98 trillion or 80.25 percent and did not meet the
targets that had been previously set (Widyastuti, 2021) The
use of tax consultant services in Indonesia and in various
countries illustrates the importance of this profession in
helping taxpayers fulfill their obligations. Indonesia with a
population of 267,000,000 people only has 5,025 consultants,
which overall is not ideal when compared to other countries.
Manuscript received on November 19, 2021.
Revised Manuscript received on November 30, 2021.
Manuscript published on November 30, 2021.
* Correspondence Author
Wiwik Tiswiyanti*, Department of Doctoral Student, Economics
Doctorate, Jambi University. Indonesia. E-mail: wiek-muis@unja.ac.id
Prof. Dr. H. Haryadi, Department of Bachelor of Commerce, Jambi
University. Indonesia. E-mail: haryadi_kamal@yahoo.com
Dr. Hj. Sri Rahayu, Department of Bachelor of Commerce, Jambi
University. Indonesia. E-mail: sri_rahayu@unja.ac.id.
Dr. Enggar Diah Puspa Arum, Department of Bachelor of Commerce,
Jambi University. Indonesia. E-mail: enggar_diah@unja.ac.id.
©The Authors. Published by Blue Eyes Intelligence Engineering and
Sciences Publication (BEIESP). This is an open access article under the CC
BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
To provide optimal service to taxpayers, the ideal ratio for
one tax consultant can reach 5,000 taxpayers (Setiawan,
2020). Meanwhile, the existing condition is that one tax
consultant reaches more than 53,000 taxpayers. Tax
consultants take shelter in various tax consulting
organizations. One of the oldest organizations is the
Indonesian Tax Consultants Association (IKPI) which was
founded in 1965. The number of IKPI members in 2020 for
all of Indonesia is 4,788 people (IKPI, 2020). There are still
many violations related to the code of ethics, such as the
consultant's decision to help clients do tax evasion by
falsifying data, taking illegal actions, reporting null or
incorrect Tax Returns (SPT) and others. Decision making is
not an easy thing because various alternative decisions can
cause conflict. Conflict occurs when unsure of choices or
worried about the consequences of making wrong decisions
(Anthony & Wilson, 1982). This decision-making is
influenced by various individual factors, both individual and .
Situational Trevino (1986) states, there are two views that
affect individual unethical actions. First, influenced by the
moral character of the individual and second, influenced by
the environment. (Suryanto, 2020) states that if someone
faces an ethical dilemma, then the behavior that appears is
influenced by the interaction between characteristics related
to the individual and outside the individual. This study
departs from the suggestions of previous researchers Casali
and Perano who suggested that for future research to
examine, among others, the code of ethics, organizational
ethical culture, the experience of these factors has a
significance level of 75% or greater but is rarely studied. A
person's experience will have an impact on the decisions
taken by someone who is experienced tends to be bolder,
faster and more precise in making a decision. Work
experience is very important to look at individual knowledge
and skills, because the longer the work experience a tax
consultant has, the greater the level of knowledge and skills
possessed by a tax consultant (Harmana et al., 2017).
Organizational ethical culture is an employee's perception of
the ethical actions of leaders regarding the importance of
prioritizing ethics and providing sanctions for deviant and
immoral actions within the organization. Organizational
ethical culture is a combination of the individual ethical
values of managers with informal and formal policies on
organizational ethics (Vitell and Hidalgo, 2006).
Organizational ethical culture (corporate ethical value) as a
standard that guides the external adaptation and internal
integration of the organization
(Leiwakabessy, 2009).
The Effect of Organizational Ethical Culture as A
Moderating Variable in Ethical Decision Making
on Tax Consultants
Wiwik Tiswiyanti, Haryadi, Sri Rahayu, Enggar Diah Puspa Arum