CHAP TER 1 INTRODUCTION 1.

1 Background Enrollment tax returns (SPT) report of taxpayer is one annual event of the Directorate General of Taxation. In the process of implementation, the Directorate General of Taxation appoints Tax Office to carry out the annual tax revenue for registered taxpayers in their respective work areas. In the tax system there are limitations as an indicator that shows the level of tax compliance. There are regarding timing of tax liabilities (time compliance) and the amount of tax to be paid (taxable compliance). Noncompliance taxpayers in terms of fulfill their tax obligations, in part because the tax system is considered hard to reach so that those who did not want to be obedient and submissive violate the provisions of the Tax Act. This means an increase in the quality and quantity of service tax needs to be increased with a view to improve taxpayer satisfaction, which in turn can increase voluntary compliance of taxpayers in their tax obligations. Constraints that occur each year is the buildup Taxpayers who wish to report its annual tax return, this is likely due to taxpayer annual tax return report on the last days of the deadline for reporting, i.e. no later than 3 (three) months after the end of the tax year (31 March) for the individual taxpayer, and 4 (four) months after the end of the tax year (April 30) for the Taxpayer. As a means to anticipate

this, the Directorate General of Taxation has provided Special Revenue SPT place that came to be known by the taxpayer is the Drop Box. Directorate General of Tax through Tax Office perform quality repairs service by providing a form of service innovation by providing a form of service innovation by using the drop box since 2009 so that tax services are accessible to taxpayers who live far away from the tax office with the aim to increase the satisfaction and taxpayer compliance. Drop box is places where the tax return may be accepted are placed in the Tax Office (KPP), shopping malls, and other strategic places. Tax return delivered via drop box is Annual Income Tax Agency (1771 & 1771S), individual tax return (1770, 1770s, and 1770SS), and correction tax return. This effort aims to facilitate taxpayers when hit time and effort. In the Directorate General Tax of East Java I, service drop box is not applied in accordance with the program launched nationally. This is adequate for modification drop box with the name of the program one day done. It is intended to accommodate the interests of taxpayers and reduce the obstacles that occur in the implementation is. With the drop box facility that provides convenience taxpayers and tax compliance is expected to be increasing from year to year. But in achieving its goal need assess how drop box can improve the effectiveness of formal compliance taxpayer particular individual. Considering this program is a new service and is still the potential for the emergence of obstacles, researchers are interested in studying in the technical implementation of the tax office. Thus,

researchers raised the title Drop Box Service Effectiveness in Improving Formal Compliance Reporting Annual Income Tax Returns of Individual Taxpayers in the Tax Office Primary Surabaya Rungkut" 1.2 Problem Statement Problems relating to the background of the issues discussed in this study are as follows: How the effectiveness of the service drop box in improving formal compliance reporting annual income tax returns of individual taxpayers in Tax Office Primary Surabaya Rungkut? 1.3 Research Objective Objectives of this study are as follows: Examine the effectiveness of the service drop box in improving formal compliance reporting annual income tax returns of individual taxpayers in Tax Office Primary Surabaya Rungkut. 1.4 Research Contribution The results of this study are expected to have the benefits include: 1. The researcher, this study can be obtained from a deeper understanding of both the theory and practices applied in the field of taxation especially on the drop box service innovation in improving formal compliance reporting annual income tax returns. 2. The Directorate General of Tax of East Java I, especially for Tax Office Primary Surabaya Rungkut, can use it as a contribution to the thoughts and

ideas of the researcher and introspective material regarding service delivery innovations that can increase the drop box in the formal compliance reporting annual income tax returns. 3. For Academics, this study can be used as reference material or reference for further research. 1.5 Research Systematic Systematic of writing used in this study are as follows: CHAPTER I: INTRODUCTION This chapter describes the background of doing research, the formulation of the problem, objectives, and contribution of the research. CHAPTER II: LITERATURE REVIEW This chapter describes the literature review provides the theory, concepts, arguments that are relevant to the issues formulated and used to support the research. Related theories include theories about the drop box service innovations, formal compliance reporting Annual Income Tax Return, and the effectiveness of the program as well as the criteria. CHAPTER III: RESEARCH METHODOLOGY This chapter describes the research methods used in this study, including the research approach, the scope of research, research design, types and sources of data, data collection procedures and data analysis techniques. CHAPTER IV: RESULTS AND DISCUSSION

Described in this chapter briefly overview the research site, a description of research results, and interpretation of research results. Research describes the implementation of annual tax reporting income tax through the drop box, to do with formal compliance, and interpretation of the drop box in improving the effectiveness of formal compliance reporting annual income tax returns the individual taxpayer in Tax Office Primary Surabaya Rungkut. CHAPTER V: CONCLUSIONS AND SUGGESTIONS This chapter contains the conclusions obtained from the results of the study and interpretation of the results of research conducted in the previous chapter. This also contains the recommended suggestions that can be taken into consideration and input for the research site.

CHAPTER II LITERATURE REVIEW 2.1 Drop Box a. Drop box definition Drop box is a box that is used to deliver and place the annual income tax returns by the taxpayer. The box is placed in certain places and accompanied by tax officers, which in turn will give the officer received evidence that the taxpayer has included reports of Annual Income Tax Return in the box. b. Drop box function Drop Box has a function as a place to facilitate taxpayers in submitting their annual tax return income tax. c. Drop box location Tax Office Primary Surabaya Rungkut has four drop box locations, there are: 1. Tax Office Primary Surabaya Rungkut 2. Carefour Kalirungkut 3. Gedung Sier 4. Pertokoan Yakaya

2.2 Taxpayer Compliance a. Definition of Taxpayer Compliance (www.pajak.go.id) Taxpayers Taxpayer Compliance is set by the Directorate General of Taxation who meet certain criteria may be granted preliminary tax refunding. b. Terms of Taxpayer Compliance (www.pajak.go.id) 1. Reporting annual tax return timely in 2 (two) years 2. In recent years, the late submission of tax return period of not more than three (3) days for each type of tax and tax row 3. SPT late period referred to in item 2 has delivered no later than the deadline for submission tax return on the next tax period 4. Do not have delinquent taxes for all types of taxes: a) Except as permission to repay or defer payment of tax b) Not including tax arrears with respect to SPT issued for 2 (two) last tax period 5. Never convicted of a crime in the field of taxation within a period of 10 (ten) years 6. In the event that the financial statements audited by a public accountant or the Financial and Development Supervisory Board must be a qualified opinion that such exclusion does not affect the income tax. a) Within two (2) years recent bookkeeping tax referred to in Article 28 of Law No. 6 of 1983 on General Provisions and Tax Procedures which have been amended by Act No. 28 of 2007

b) If the two (2) years of the taxpayer never done tax audit, the fiscal correction for each type of tax owed is not more than 10% (ten percent). 2.3 Effectiveness Theory a. Effectiveness theory Understanding the effectiveness of basically related to the achievement of policy objectives or targets. Effectiveness is the relationship between the output of the goals or objectives to be achieved. Operations is said to be effective if the process of achieving policy objectives and ultimate goal (spending wisely). "Indicators illustrate the effectiveness of the reach and impact of the output result in achieving program goals. Increasingly large contribution to the achievement of the output specified goals or objectives, the more effective work processes of an organization" (Mardiasmo, 2004:132) b. Approach to Organizational Effectiveness According to Robbins (1994:58-83), the approaches used in assessing the effectiveness of the organization are as follows: 1. Goal attainment approach This approach states that the effectiveness of an organization must be assessed in relation to the achievement of objectives (ends) rather than how (means). This approach assumes that the whole organization is made intentionally, rational and searching purposes. 2. System approach

In this approach, the ultimate goal is not ignored, but only seen as one element in a more complex set of criteria. System approach focuses not on specific end goal, but the means necessary to the achievement of the final goal. Systems approach to organizational effectiveness implies that the organization is made up of sub-subsections that are interconnected. If one part has a poor performance, then there will be a negative impact on the performance of the all systems.

CHAPTER 3 RESEARCH METHODOLOGY 3.1 Research Approach Research methods to be a fundamental thing in a study because of how researchers directing research, related to the data sources used, and the analysis required in order to really lead to what will be studied. The use of qualitative research, which is a research approach that uses data in the form of written or spoken words, behavior, phenomena, events, or the knowledge of the object of study. Qualitative method is a research method that used to researching the nature of object condition, in this case the researcher as the main instrument of the research, data collecting method used together, the analyzing method can be inductive, and the result of qualitative research is emphasis in the meaning rather than generalization. The consideration using this method is as stated by Meong, 1. Easily adjust with the qualitative in case of double reality. 2. This method indirectly has a relationship between the researcher and the respondents. 3. This method is more sensitive and easily adapt with the influence management together with pattern faced. Descriptive method is searching for the fact with accurately interpretation. Descriptive method learn about the problem faced in the society, and also

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concern in people behavior in some circumstances, include the relationships, activities, acts, assumptions, and process which happened and influencing a phenomenon. 3.2 Research Scope This study is limited to services innovation research object drop box and only limited to formal compliance reporting annual tax return of individual taxpayers in the Tax Office Primary Surabaya Rungkut. In this study, as described in the basic theory, definitions used drop box is the process of receiving and processing all tax return-based drop box, is not limited to the annual tax return that reported using a box that is in a strategic place as in the first definition. This study is limited to subjects or informants individual taxpayers in the Tax Office Primary Surabaya Rungkut because of the preliminary study, obtained information that the drop box is more widely used by individual taxpayers rather than the body. In addition, Tax Office Primary Surabaya Rungkut is the Tax Office Primary which has the largest individual taxpayers in the Directorate General Tax East Java I area. Any use of the rules in this study focused on the implementation to individual taxpayers. In addition the tax authorities are obtained informants involved in service innovation of drop box in the Tax Office Primary Surabaya Rungkut. Whereas the data used is the data from 2009 to 2013, since the drop box service programs implemented to date. Data on the 2008 are use and only for supported.

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3.3 Research Design "Research design is the logic of the relationship between the data to be collected (and the conclusions that will be generated) and the beginning of a research statement" (Yin, 2006:25). The study began by asking the willingness of the Directorate General of Taxation East Java Regional Office I to give permission to conduct research in the Tax Office Primary Rungkut Surabaya. Then carried out a preliminary study on the part of the service section with a structured interview and request data or documents are required. Furthermore, we evaluated the data by studying the results of interviews and official documents related to the taxpayer, the service drop box, and reporting annual tax returns. Then does a structured interview case study type open-ended on the individual taxpayer and the tax authorities involved in the service drop box. In the case study interviews open-ended, researchers can ask key respondents about the facts of an event as well as their opinions about events there (Yin,2006:108). Finally make the discussion on the findings from interviews and documents. 3.3.1 Research Questions Based on the problem statement to be addressed, the research questions are: 1. What is the procedure of receiving and processing SPT with drop box services program implemented in Tax Office Primary Rungkut Surabaya? 2. What are the activities undertaken by the Tax Office Primary Rungkut Surabaya in the drop box service program to make it successful?
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3. How does the growth rate of formal compliance reporting annual income tax returns in Tax Office Primary Rungkut Surabaya during drop box service program implemented? 4. How efficiency and control by the Tax Office Primary Rungkut Surabaya drop box service program? 5. Are there any consensus on the tax authorities drop box service program and how the individual taxpayer satisfaction with the service drop box? 3.3.2 Research Proposition Each proposition directs researchers' attention to something that should be investigated in the study (Yin, 2006:29). In other words, the proposition is a thought which is used as a reference to answer the problem formulation. Proposition is the thinking that is used as a reference to answer the problem formulation. So the research proposition is: 1. Understanding and acceptance procedures with tax return processing program which is adequate for the service drop box in Tax Office Primary Rungkut Surabaya. 2. Identification of the activities undertaken by the Tax Office Primary Rungkut Surabaya to make success of the service drop box program. 3. Assessment growth rate of formal compliance reporting annual income tax returns in Tax Office Primary Rungkut Surabaya during drop box service program applied. 4. Assessment and conclusion efficiency and control are performed by the Tax Office Primary Rungkut Surabaya on the drop box service program.

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5. Assessment and conclusion regarding the presence or absence of consensus about the tax authorities drop box service program and satisfaction of individual taxpayers for the service drop box. 3.3.3 Unit of Analysis The units of analysis reveal things that will be discussed in a study that will draw attention to something that will be investigated. Object of this study is the drop box service innovation in Tax Office Primary Surabaya Rungkut. So that the units of analysis in this study are as follows: 1. Section chief service and Head of Data Processing and Information. 2. Tax Officer Tax Office Primary Rungkut Surabaya that directly involved in the service drop box. 3. Individual taxpayer in Tax Office Primary Rungkut Surabaya who use the service drop box. 4. Documents regarding the amount and details of registered taxpayers and the amount of annual income tax returns that have been formally obedient. 5. Documents regarding the ratio of annual tax reporting compliance rate Income Tax Individual Tax Payer in the Tax Office Primary Rungkut Surabaya. 3.3.4 Criteria for Interpreting the Findings Data and information collected is analyzed based on the theory of program effectiveness in the organization and the criteria specified therein. Then interpreted in qualitative terms to the structure of the writing is descriptive.

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3.4 Types and Sources of Data Types of data used in this study are: 1. Qualitative data is data that cannot be quantified, among others, in the form of documents, testimonies both oral and written, thought, interpretation of results, and others. For example, data obtained from interviews with ministry section chief Tax Office Primary Rungkut Surabaya. 2. Quantitative data, the data obtained from the analysis of the calculation of the numbers that are used to support the analysis process. for example, data on the number of registered taxpayers, the amount of annual tax returns are reported, and the ratio of annual tax reporting compliance levels. Sources of data used in this study are: 1. Primary data, a data or information obtained directly from the results of observations and structured interviews with informants. For example in the form of an opinion or view of tax authorities in Tax Office Primary Rungkut Surabaya. 2. Secondary data, the data is obtained by looking at the documents that are used on Tax Office Primary Rungkut Surabaya and Directorate General of Tax office area of East Java I. For example, data on the number of registered taxpayers, the amount of data tax return dutifully reported, and data reporting compliance rate ratios of tax return.

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3.5 Data Collection Procedures This study used three types of data collection techniques, namely: a. Preliminary Survey At this stage the initial visit to Tax Office Primary Rungkut Surabaya and the Directorate General of Tax Office of East Java I to obtain an overview of the situation and related issues annual tax reporting services through drop box. b. Literature Study Literature study was done by finding and studying books, articles, magazines, research journals, and regulatory / DGT decisions related to the theory or drop box and a discussion of formal compliance reporting annual income tax returns. Literature study was also conducted using an online data retrieval by performing finding data via online media such as the Internet or other network media that provide online facilities, allowing researchers to utilize data online information in the form of data and information theory, as quickly or as easily as possible, and can academically accountable (Bungin, 2009:125) c. Study Documents Document study done by studying data / documents about the profile of the Tax Office Primary Rungkut Surabaya, the number of registered taxpayers, the amount of annual tax which has been assessed dutifully reported formally, and the ratio of the level of compliance reporting year income tax returns. d. Interview
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Interviews are structured with a list of predetermined questions to obtain data related to the procedures and activities undertaken by the Tax Office Primary Rungkut Surabaya on the drop box service innovation. In addition, to obtain information regarding the efficiency, control, tax authorities consensus about the success, and the satisfaction of taxpayers in the drop box service program. To obtain the required data, conducted in-depth interviews with key information holders, and doing structured interviews case studies type open-ended for tax authorities and taxpayers. 3.6 Data Analysis Techniques In the analysis phase, the entire results of the data collection process are collected and then compiled in the form of a detailed report. Steps of data analysis in this study are as follows: 1. Outlines a brief description of the research subjects include the following: a. the history of the Tax Office Primary Rungkut Surabaya b. facilities and infrastructure c. organizational structure d. working area e. vision and mission 2. Describe the procedures for reporting annual income tax returns through the service drop box at the Directorate General of Taxation Office of East Java region I in general and Tax Office Primary Rungkut Surabaya in particular.

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3. Grouping all the data and evidence collected by the criteria of effectiveness. 4. Assess the effectiveness of the service drop box program in achieving its goal to improve the formal compliance reporting annual income tax returns and compare it with the target ratio of compliance Directorate General of Taxation (head office and regional offices eastern Java I) with goal attainment approach. In this study using growth criteria. 5. Assess the effectiveness of the service drop box program in achieving its goal to improve the formal compliance reporting annual income tax returns with the system approach. The criteria used in the assessment are efficiency, control, consensus about the success, and external evaluation (taxpayer satisfaction).

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REFERENCES Bungin, Burhan. 2009. Penelitian Kualitatif: Komunikasi, Ekonomi, Kebijakan Publik, dan Ilmu Sosial lainnya. Jakarta: Kencana Prenada Media Group. Christianto, Yoppy. 2011. Analisis Penerapan Sistem Drop Box Guna Pelayanan Pelaporan SPT Tahunan pada Kantor Pelayanan Pajak Madya Malang. Skripsi. Malang: Universitas Muhammadiyah Malang. Mardiasmo. 2009. Perpajakan. Edisi Revisi Tahun 2009. Yogyakarta: Penerbit Andi. Moleong, Lexy, 2005. Metodologi Penelitian Kualitatif. Bandung : PT. Remaja Rosdakarya Sitompul, Faisal. 2008. Analisis Terhadap Tingkat Kepatuhan Wajib Pajak atas Penyampaian Surat Pemberitahuan Masa Secara E-filling pada Kantor Pelayanan Pajak Pratama Medan Kota. Skripsi. Sumatera Utara: Universitas Sumatera Utara. Sowam E. Jessica, et al. 2004. No Longer Unmeasurable? A Multidimensional Integrated Model of Nonprofit Organizational Effectiveness. Nonprofit and Voluntary Sector Quarterly, vol.33, no. 4, December 2004:711-728. www.pajak.go.id Yin, Robert K. 2006. Studi Kasus Desain & Metode. Jakarta: RajaGrafindo Persada.

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