Literature review perception is a process where

LITERATURE REVIEW
Perception is a process where individuals organize and interpret their sensory
impressions in order to give meaning to the surrounding environment (Robbins, 1996).
Perception is an interpretation and an individual's view of something (Muliari & Setiawan,
2011).
Tax ethics is an action to comply with tax regulations or tax laws that apply, in this
case the taxpayer must be routine in paying taxes so that the country's development is done
very well (Izza & Hamzah, 2009). Tax ethics is considered as a regulation that governing
individuals in living their lives in the sphere of taxation, how they carry out their tax
obligations, whether they have done right, wrong, good or bad (Suminarsasi & Supriyadi,
2011). From the above explanation, it can be concluded that the tax ethics is a behavior in
the sphere of taxation to do taxation obligations properly and correctly.
Basically, tax evasion is a deviant act for violating established rules and can harm
others. In other words, tax evasion is unethical act to do. However, based on the stduy of
McGee (2006), not everyone considers tax evasion unethical. Tax evasion is also always
seen as ethical act to carry out, or sometimes ethical, depending on the conditions that are
happening in the surrounding environment.

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Figure 1 – Research Model (Source: Processed Data, 2017)
According to McGee et al. (2012), justice is a government action that related with the
use of tax funds in a positive manner. Suminarsasi and Supriyadi (2011) define justice as a
condition in which people should receive equal treatment in taxation and imposition by the
state. The government is said to be fair if funds sourced from taxes are used properly. In
addition, the treatment of taxation and imposition must be the same, as seen from the tax
laws that have been prepared and implemented. Several previous studies have shown that
justice negatively affects the perception of tax evasion ethics, that is, the higher the level of
justice in the government of a country, then the people will have the perception that tax
evasion is an action that is unethical. The study among others was conducted by McGee et
al. (2007), McGee & Guo (2007), McGee et al. (2008), Nickerson et al. (2009), McGee et al.
(2011), McGee et al., (2012), and Mukharoroh and Cahyonowati (2014).
H1: Justice negatively influence the perception of tax evasion ethics.
The tax system is defined into the scope of tax rates and the use of tax funds
negatively, such as government corruption (McGee et al., 2012). Suminarsasi and Supriyadi
(2011) state that the tax system is an existing taxation procedure, related to calculation,
payment, and reporting. The tax system is good when it gives convenience to the taxpayer in
every procedure. In addition, the tax authorities must play an active role in supervising and
carrying out their duties with high integrity. On the contrary, the tax system is not good if the
tax authorities cheat when conducting the system, such as corruption. Several previous
studies showed that the tax system negatively affects the perception of tax evasion ethics.