The Relationship between Tax Knowledge and Social Environment on Tax Awareness among Accounting Students in the State of Polytechnic Sriwijaya, South Sumatera

Tax is one of the state revenues that is coercive and regulated by tax laws. While tax revenue can help the development of a country, developing countries normally generate low tax collection or at risk of losing corporate tax revenue due to issue of tax avoidance. To address the issue, the Indonesia government had introduced the Tax Inclusion program to increase the tax awareness among the younger generations. This study reviews the factors influencing tax awareness among diploma accounting students in the State of Polytechnic Sriwijaya South Sumatera, Indonesia. The study applies non-purposive sampling on 100 respondents. The results show that both tax knowledge and social environment positively influence the tax awareness among the students. The results confirmed the significant role of the government authority in instilling tax awareness which eventually lead to enhance tax compliance, hence consequently benefited the country and society.