Volume 8, Issue 9, September – 2023 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

The Influence of Financial Literacy and Utilization of

Financial Technology on Online Business
Taxpayer Compliance
Angel Aprilya Limbong1 Haliah2; Andi Kusumawati3*
1 2,3
Hasanuddin University, Makassar, Indonesia Hasanuddin University, Makassar, Indonesia

Corresponding Author:- Andi Kusumawati3*

Abstract:- This study aims to determine the effect of commonly known as financial technology, to help them run
financial literacy and utilization of financial technology their businesses and operations. Fintech offers alternatives
on taxpayer compliance. This research uses a case study that help entrepreneurs leverage appropriate financial
method of online business people in Makassar using services.
quantitative data, namely the distribution of
questionnaires given either directly or through online There are several factors that influence an
media (G-Forms) to 40 online business people. The result entrepreneur's tax compliance, namely the amount of costs
of this study is that a high level of financial literacy will that must be incurred, which can affect taxpayer compliance
affect online business taxpayer compliance. In addition, (Haliah, 2023), but there are main factors that affect tax
the use of financial technology can affect taxpayer compliance, namely the level of financial literacy of
compliance in carrying out their obligations. business people regarding the imposition of taxes from their
business activities and the second factor is the use of
Keywords:- Financial Literacy, Financial Technology financial technology as a system that can facilitate business
Utilization, Online Business Taxpayer Compliance. people in their transaction activities, both in business
transactions and tax payment transactions, where these two
I. INTRODUCTION factors can be strengthened by the emergence of tax
digitalization which is a digital tax service program to assist
In the current era, technological developments, business people in fulfilling their tax obligations.
especially advances in the field of digitalization, are
developing very rapidly so that they are felt in various II. LITERATURE REVIEW
aspects, one of the most affected aspects is the economic
aspect. This shift in business model activities is evidence of  Theory of Planned Behavior (TPB)
the implications of so many trends in electronic commerce Ajzen (2017) shares the Theory of Reasoned Action
activities through various media for buying and selling into another theory, namely the Theory of Planned Behavior
goods or services such as social media, websites, e- and provides a relationship from the attitudes-behaviors
commerce, and marketplaces. In the financial sector, raised by individuals to respond to something. Therefore,
entrepreneurs can use financial technology, commonly this theory is used to see the internal factors that influence
known as financial technology, to help entrepreneurs run taxpayers in carrying out their obligations as taxpayers and
their businesses and operations. Financial technology offers see how far the understanding of online business literature is
an alternative that helps entrepreneurs leverage the right personally.
financial services.
 Taxpayer Compliance
Through financial authorization, the Government of Tax compliance is the obedience of a person as a
Indonesia considers that there is considerable potential to society with a certain income in carrying out their taxation
increase state revenue derived from tax collection through rights and obligations based on applicable regulations in a
digital trade activities, where revenue from tax collection is region or country (Peprah, 2020). Therefore, using
needed for the government in developing the country's compliance theory to see whether the taxpayer is compliant
economy, infrastructure, education, so that social and or not in more detail by looking at the percentage level of
community. compliance of online business taxpayers.

The level of impact of financial literacy on business  Financial Literacy

people is considered reasonable, so it is very important for Financial literacy is an understanding of finance that is
entrepreneurs to start new businesses and maintain needed in everyday life, because high financial literacy can
economic development. In the financial sector, provide solutions to financial management problems
entrepreneurs can use fintech (financial technology), (Nichita, 2019). A person's high level of financial literacy

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Volume 8, Issue 9, September – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
affects better tax considerations and understanding and Neutral (score 3), Agree (score 4), and Strongly Agree
ultimately leads the person to fulfill their tax obligations (score 5).
properly. Therefore, the first hypothesis of this study is
formulated as follows: The data used in this study are primary in nature
obtained from the results of distributing questionnaires both
 H1: Financial Literacy has a Positive and Significant directly and indirectly using G-Forms with business outlets
Effect on Online Business Taxpayer Compliance. in Makassar City such as in Biringkanaya District,
Tamalanrea District, Pankukkang District, Rappocini District
 Utilization of Financial Technology and Tallo District by utilizing social media as a medium for
The use of financial technology is the use of distribution such as Instagram and Line which have partners
technology in the financial system that produces new in e-commerce (Shopee, Gojek, Grab, Tokopedia) and social
products, services, technologies, and/or business models that media with various considerations. The choice of distributing
can affect the stability, efficiency, smoothness, security, and questionnaires in the form of G-Forms was chosen to
reliability of the payment system of the financial system. streamline time in collecting data from respondents' feedback
The availability of adequate financial technology is so that when compiling data later it does not take a long time
considered capable of improving tax legislation due to the and by distributing the questionnaire link it can cover a large
access to information provided by this technology and the enough area.
ease of financial payments (Akbar, 2020). Therefore, the
second hypothesis of this study is formulated as follows: This This study uses a sample technique with specific
criteria as a representative population. The reason for
 H2: The use of Financial Technology has a Positive and applying purposive sampling techniques in this study is
Significant Effect on Online Business Taxpayer because this technique is considered appropriate for
Compliance quantitative research or research that does not generalize
(Sugiyono, 2016). Then, in determining the number of
Based on the description above, the conceptual samples, it is determined based on sample size, namely a
framework in this study will discuss the effect of financial minimum of 35 samples (respondents), with special criteria
literacy on online company tax compliance when using such as, become a taxpayer, have an online business, both an
financial technology with the assumption that the variables online shop and one that collaborates with e-commerce, that
used are the independent variables (financial literacy and has a minimum of 1,000 followers on social media or on
use of financial technology) and the dependent variable other e-commerce platforms, and domiciled in Makassar
(online business taxpayers). with an overview of the City.
framework used in this study as follows:
Knowledge possessed by each individual related to the
economy is used as material for consideration in making
decisions to manage their finances.

A modern example of financial innovation that is

present among the people, so that people can enjoy more up-
to-date and easier financial transactions using internet
technology or smartphones. Taxpayer compliance means
fulfilling obligations as tax authorities.

Researchers use multiple linear regression analyses.

Basically, regression analysis tests the dependence of the
dependent variable (link) on one or more independent
variables (explanatory or independent variables) to estimate
and/or predict the population average or the value of the
dependent variable based on known values of the
Fig 1 Matrix Framework Thinking independent variables (Ghozali, 2018). For regression where
there are two or more independent variables, the regression
III. RESEARCH METHODS is also known as multiple regression. Because the
independent variables above have more than two variables,
This research was conducted with a quantitative the regression in this study is called multiple regression.
approach and using simple correlation techniques to
determine the effect caused between the independent The data analysis technique in this study is uses the
variables in the form of financial literacy (X1,) and regression equation to determine how much influence the
utilization of financial technology (X2) and the dependent independent or free variables, namely financial literacy (X1)
variable, namely online business taxpayer compliance (Y) in and financial technology (X2), have on online business
more depth by distributing questionnaires containing taxpayer compliance (Y). The mathematical formula for
concrete questions so as to produce accurate and empirical multiple regression used in this study is:
data by scoring the questionnaire using a Likert Scale of 1-5,
namely Strongly Disagree (score 1), Disagree (score 2),

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Volume 8, Issue 9, September – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Y = a + b1X1 + b2X2 + e  B2 = regression coefficient between financial
technology and online business taxpayer compliance
 Y = Online business taxpayer compliance  X1 = Financial literacy
 Α = Constant  X2 = Financial Technology
 Β1 = Regression coefficient between financial literacy  E = Error disturbances
and online business taxpayer compliance

IV. RESULT AND DISCUSSION

Table 1 Financial Literacy Reliability Test Results (X1)

Cronbach's Alpha N of Items Information
0,820 8 Reliable

Fintech Utilization (X2)

Cronbach's Alpha N of Items Information
0,900 8 Reliable

Taxpayer Compliance (Y)

Cronbach's Alpha N of Items Information
0,908 7 Reliable
Source: Output SPSS for Windows versi 25, 2023

Based on Table 1 above, it shows that this test was carried out not on a variable basis but on a question-item basis for each
variable. The results show that the cronbah's alpha value is greater than 0.6, so it can be said to be reliable.

Fig 2 Normality Test Graph

Source: Output SPSS for Windows versi 25, 2023

Based on the normality test graph shown in the image above, it can be seen that the results of the normality test used in the
regression model for confounding variables or residuals have a reasonable distribution.

Table 2 Normality Test Results

One-Sample Kolmogorov-Smirnov Test
Unstandardized Residual
N 40
Normal Parametersa,b Mean 0,0000000
Std. Deviation 3,35773694
Most Extreme Differences Absolute 0,094
Positive 0,088
Negative -0,094
Test Statistic 0,094

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Volume 8, Issue 9, September – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Asymp. Sig. (2-tailed) ,200c,d
a. Test distribution is Normal.
b. Calculated from data.
c. Lilliefors Significance Correction.
d. This is a lower bound of the true significance.
Kolmogorov –Smirnov Asymp.Sig Criteria Information
0,094 0,200 > 0,05 Normally distributed
Source: Output SPSS for Windows versi 25, 2023

Based on the table above, it shows that the resulting value in Asym.sig is 0.200, which can be said to be an asymp.sig value
of 0.200 that is greater than 0.05, so it can be said that the data is normally distributed.

Table 3 Multicollinearity Test Results

Coefficientsa
Collinearity Statistics
Model Tolerance VIF
1 Literasi Keuangan ,792 1,008
Pemanfaatan Fintech ,792 1,008
Source: Output SPSS for Windows versi 25, 2023

Based on table 2 above, the multicollinearity test revealed that each independent variable had a VIF with a value of <10,
namely the financial literacy and fintech utilization variables, which both had a value of 1.008, so it could be concluded that there
was no multicollinearity. Meanwhile, the tolerance value is >0.10, and the financial literacy and fintech utilization variables are
0.792.

Fig 3 Heteroscedasticity Test Results

Source: SPSS output for Windows version 25, 2023

Based on Figure 3 above, the heteroscedasticity test shows that there is no clear pattern and scores are distributed above and
below zero on the Y axis, so there is no heteroscedasticity between financial literacy in taxpayers and the use of fintech in
taxpayers in online businesses.

Table 4 Analysis Results Regression Double

Coefficientsa
UnstandardizedCoefficients Standardized
Coefficients
Model B Std. Error Beta T Sig
1 (Constant) -9,510 1,956 -4,861 0,000
Literasi Keuangan 1,001 0,047 0,967 21,404 0,000
Pemanfaatan Fintech 0,083 0,036 0,106 2,341 0,025
Source: SPSS output for Windows version 25, 2023

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Volume 8, Issue 9, September – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Based on the table above, it shows the value of the The coefficients of financial literacy (1.001) and fintech
constant value (a) is negative, namely -9.510, meaning that utilization (0.083). Because 1.001 > 0.083, financial literacy
if financial literacy is zero (0) and fintech utilization is equal is the variable that has the dominant influence on taxpayer
to 0.02, taxpayer compliance will decrease. The value of the compliance.
regression coefficient of the financial literacy variable (X1)
is 1.001, meaning that financial literacy has a positive effect  Based on the results shown in table D.2 with the
on taxpayer compliance. The regression coefficient value of regression equation is obtained as follows:
the fintech utilization variable (X2) is 0.083, meaning that
fintech utilization has a positive effect on taxpayer Y = - 9.510 + 1.001X1 + 0.083X2 + e
compliance. This shows the value of the regression

Table 5 Determination Coefficient Test Results

Model Summaryb
Model R R Square Adjusted R Square Std. Error of the Estimate
1 ,553a ,306 ,268 3,447
Source Output SPSS for Windows versi 25, 2023

Based on the results of the determination coefficient test in the table above, The adjusted R square value (coefficient of
determination) is 0.268, or 26.8%, which means that the taxpayer compliance variable can be influenced by financial literacy and
fintech utilization variables. While the remaining 73.2% is influenced by other variables not examined.

Table 6 Test Results t

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients T Sig.
Model B Std. Error Beta
1 (Constant) -9,510 1,956 -4,861 0,000
Literasi Keuangan 1,001 0,047 0,967 21,404 0,000
Pemanfaatan Fintech 0,083 0,036 0,106 2,341 0,025
Source: SPSS output for Windows version 25, 2023

 Based on the results of the t test in the table above, the V. CONCLUSIONS
following test results are obtained:
 The Conclusions Obtained from the Results of this Study
 Testing Hypothesis 1, Financial literacy has a positive are
and significant effect on online business taxpayer
compliance  The results of this research analysis show that financial
From the table above, it can be seen that the Sig value literacy has a positive and significant effect on taxpayer
for the Financial Literacy variable (X1) on taxpayer compliance, which means that H1 is accepted. This
compliance is 0.000 <0.05 and t count 21.404 > t table 2.026, illustrates that if the understanding of financial literacy
so this shows H1 is accepted or there is a positive and possessed by online business taxpayers is good, these
significant effect between financial literacy and mandatory business people will carry out structured financial
online tax business in Makassar City. management in order to increase their income, including
managing their finances to pay taxes.
 Testing Hypothesis 2, The use of financial technology has  The results of this research analysis show that the use of
a positive and significant effect on online business fintech on taxpayer compliance has a positive and
taxpayer compliance significant effect, which means that H2 is accepted. This
Judging from the table above, it can be seen that the The illustrates that progress in the field of financial
Sig value for the fintech utilization variable (X2) on taxpayer technology (Fintech) will have an impact on many things,
compliance is 0.025 <0.05 and t count 2.341 > t table 2.026, one of which is increasing taxpayer compliance because
so this shows H2 is accepted or there is a positive and taxpayers no longer need to pay their taxes at the DGT
significant influence between fintech utilization and online office, but only through e-billing it can help taxpayers
business taxpayer compliance in the City of Makassar. taxes in fulfilling its obligations. In addition, with Law
No. 7 of 2021 concerning Harmonization of Tax
Regulations (HPP), which explains the imposition of
taxes for business people who use fintech to increase their
income.

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Volume 8, Issue 9, September – 2023 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
 Following are Some Suggestions that have been
Formulated by Researchers to:

 For Government it is hoped that socialization regarding

the newly enacted tax regulations both through online and
print media will be carried out. So that every online
businessman can find out about changes regarding the
imposition of these taxes in using fintech advances.
 For Fintech Service Providers it is hoped that it will
strengthen the system used in order to reduce things that
make each user feel uncomfortable so as to increase data
protection, as well as security when making transactions.
 For future researchers, it is hoped that they will discuss
with a wider area and seek references from other sources
with a wider scope so that the results of the research
under investigation can produce more complete and
detailed information.

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