Estimating Intellectual Capital Value Adequacy - A Case Study in Directorate General of Taxes (DGT) Indonesia

Abstract

Purpose: The article describes about concepting of intellectual capital value adequacy for sustainable tax reform. Concern with capability problem has fluctuated tax revenue dramatically over last decade. Sustainable tax revenue is an inherent of intellectual capital. Theoretical framework: Theoretical case for a positive relation between VAICTM disclosure, tax reform and net worth method rest on the assumption that the responsibility devolved upon apparatus. Design/Methodology/Approach: Descriptive Quantitative Method. Primary data through interviews with several elite informants and auditors. Secondary data from Annual Report, Performance Report and Financial Report during 2017 – 2021, to calculate the value creation efficiency of DGT’s tangible and intangible assets. Findings: This research finds out the variables to estimate the intellectual capital value and adequate implementation of an institution. Furthermore, to build an adequate intellectual capital concept for the public sector, researcher offer the concept of intellectual capital as its components elaborating the VAICTM and the Net Worth Method. Research, practical & social implications: It is recommended by using VAICTM and Net Worth Method can be used to estimate value added intellectual capital coefficient and adequate at DGT. Originality/Value: Elaboration of Value-Added Intellectual Capital Coefficient and Net Worth Method can be used as a new concept in DGT.