Does Organizational Citizenship Behavior Mediate Tax Penalties and Moral Development Effects on Tax Compliance?

This study aims to examine the influence of tax penalties awareness and moral development on tax compliance among motor-vehicle users and to investigate whether organizational citizenship behavior (OCB) mediates the relationship. The primary data were collected by conducting survey to a diverse sample of 100 motor-vehicle users in Cikarang. Utilizing the DIT instruments for measuring moral developments, the data were analyzed by using SEM-PLS regression and sobel mediation models. This study found that tax penalties awareness and moral development do affect organizational citizenship behavior. Moreover, tax penalties awareness and moral development have direct significant influence towards tax compliance. Further, it is concluded that organizational citizenship behavior does mediate the relationship between these two variables and tax compliance. This research offers practical insights for policymakers and tax authorities to enhance compliance strategies by emphasizing the role of moral development and fostering organizational citizenship behavior among the motor-vehicle users. Moreover, this study extends the theoretical understanding of tax compliance in the context of motor-vehicle users. It contributes to the literature by integrating moral development as a key factor shaping compliance behavior