Abstract
This study was conducted in 2015 on the territory of the Tax Office Primary Kepanjen region. The purpose of
this study is to examine the effect of tax audits and tax penalties for mandatory compliance body. Method and
data analysis which was used in this research was multiple linear regression analysis, the statistical test that
consists of the calculation of validity, reliability, classical assumptions, regression, coefficient of determination
and hypothesis testing. The results indicates that the examination of the tax and tax penalties have
significant impact on taxpayer compliance. Based on these results, audits and tax sanctions can improve
taxpayer compliance behavior of the body. The results support Ebimobowei’s (2013), Duran’s (2009) and
Nugroho’s (2006), but the results are not suitable with Winerungan’s (2012) and Prince’s (2014)
Keywords: tax inspection, sanctions Taxation and Taxpayer Compliance