Main Article Content
Proper rewards as tax benefit are more effectively in increasing tax compliance than more heavily punishments. Studies toward the role of reward (positive) and punishment (negative) as the dimension of tax sanction in increasing tax compliance have been conducted toward taxpayers of both private and public sectors by three steps of study, namely on-line survey, in-depth face to face interviews, and a simulation game respectively. Three major findings are underscored. Firstly, reward and punishment as dimensions constructing tax sanction affect tax morale in order to increase tax compliance. Secondly, expectations toward the implementation of reward and punishment in the form of ease and unease (social sanction) respectively in getting public services are highlighted. Finally, reward for honest taxpayers is found to be the most critical part to reduce the potency of cheating in annual tax return. Referring these insights, I recommend a developed project promoting reward and punishment as a policy implication and as a form of innovation.