Tax Administration Reform Research Articles

PENGARUH KEBIJAKAN INSENTIF PAJAK, REFORMASI ADMINISTRASI PERPAJAKAN DAN PEMAHAMAN PAJAK TERHADAP KEPATUHAN WAJIB PAJAK

The aim of this research is to determine the influence of tax incentive policies, tax administration reform and tax understanding on taxpayer compliance either partially or simultaneously. The type of research used is associative research. Respondents in this research included 100 taxpayers registered at the Ilir Timur KPP, Palembang City. The data collection technique is by using and questionnaire. The data analysis method used in this research is a quantitative method. The research results show that Tax Incentive Policy, Tax Administration Reform and Tax Understanding together influence taxpayer compliance. Partially Tax Administration Reform has an effect on Taxpayer Compliance, while Tax Incentive Policy and Tax Understanding have no effect on Taxpayer Compliance.

Public Administration Analysis of Bleaching Motorized Vehicle Tax in Gorontalo Province

faced by the Gorontalo Provincial government in increasing local revenue (PAD) from the sector. The method used is a qualitative approach, with primary and secondary data collection to get an in-depth picture. The results showed that motor vehicle tax bleaching is part of the tax administration reform efforts aimed at improving performance through the improvement of administrative processes that are more efficient, economical, and responsive. In addition, this study also identifies various challenges in implementing the policy, including institutional, group, and individual aspects, which need to be addressed to maximize the potential revenue from the motor vehicle tax sector. This research provides recommendations for an improved tax administration system that can support the achievement of PAD targets more optimally.

Measuring the urgency of tax administration reform in Indonesia

This research aims to explore the latest developments in taxation and describe why Indonesia must implement tax reform. The primary focus is on the state revenue generated by the tax sector over the last ten years, tax ratios, and the extent of the state's losses due to tax abuse in Southeast Asia. The research uses a constructive philosophy and paradigm with a qualitative approach. It employs explanatory research, with library research as a data collection technique. The findings indicate that significant measures are required to reform Indonesia's tax administration to increase state revenues from taxes, raise the tax ratio, and reduce the amount of state losses due to tax abuse. The complex tax administration system leads to tax avoidance and abuse, reducing the state's revenue and causing the tax ratio to be low. The government needs to organize the workings of the tax system using the principles of equality, simplicity, and justice. The research results are addressed to the government as regulators and policymakers, as well as to taxpayers and the public as policy implementers. Taxpayers and the public can comply with their tax obligations without hesitation because the tax system is strong, credible, and accountable.

Tax Administration Reform: End of Tax Disputes in India?

A long-due Indian direct tax administrative reform for removing the taxpayers’ plight and widening the tax base gained momentum by introducing the faceless assessments and appeals scheme coupled with taxpayers’ tax charter. Following a descriptive approach, the study assesses whether the reform would end the tax disputes. Albeit, ideally, any tax system should be simple, efficient, transparent, and free from conflicts. The Indian taxation saga indicates an infamous tug-of-war between the taxpayers and the revenue-seeking tax officers. Serving strange tax demand notices and retrospective amendments of the tax laws created a phobia of ‘tax terrorism’ in honest taxpayers’ minds. Considering this, the government followed the digital route with no physical interaction between the taxpayers and tax officers for tax assessments and appeals. Moreover, fixing the responsibilities of the taxpayers and tax officers would minimize tax disputes substantially if addressing the apprehensions and teething problems appropriately, addressing the apprehensions and teething problems.

Unraveling the Paradox of Anticorruption Messaging: Experimental Evidence from a Tax Administration Reform

Unraveling the Paradox of Anticorruption Messaging: Experimental Evidence from a Tax Administration Reform

Measuring The Urgency of Tax Administration Reform in Indonesia

Measuring The Urgency of Tax Administration Reform in Indonesia

Tax Administration Based on Good Governance in Bangli Regency

This study aimed at comprehending the implementation of good governance-based tax administration in Bangli Regency, focusing on examining the dynamics of implementing Samsat Kerti as a public policy product, as well as innovation from regional governments. This study employs qualitative research in a descriptive manner and a post positivist perspective, conducted in Bangli Regency. Data was collected through in-depth interviews, observations, and document analysis. Informants are purposively chosen. This research found the adoption of Samsat Kerti to optimize state income from the motor vehicle tax element, which refers to the Bangli Regency government’s geographical limits. It concluded that Samsat Kerti, a form of tax administration reform based on good governance, can help the Bangli Regency Government overcome the different hurdles it may overcome. Meanwhile, the study implications are demonstrated by the fact that motor vehicle taxes are one of the primary sources of tax revenue, both practically and theoretically.

Analisis Manajemen Strategi Kebijakan Pembaharuan Core Tax Administration System (CTAS) dalam Upaya Penguatan Reformasi Administrasi Perpajakan di Indonesia

Tax reform is a refinement/improvement of tax administration performance carried out by the Directorate General of Taxes. One of the things that is part of tax reform is the Reform of the Core Tax Administration System (PSIAP) or Core Tax Administration System (CTAS). Currently, the DJP core system still has limitations in the form of not covering all business processes, so it is necessary to update the information technology system. This research was conducted with the aim of analyzing the strategic management of CTAS renewal policies in an effort to strengthen tax administration reform in Indonesia. The research method used is a qualitative approach and data collection techniques in the form of observation, interviews and documentation. The research results show that the strategy implementation stages have been prepared optimally but there are still things that need to be improved and perfected. Support is also available from several important aspects such as funding, leadership, organizational structure, human resources and information technology. The results of the SWOT analysis show that there are strengths in the legal basis, weaknesses in socialization, opportunities in the service process and inspections in the field and threats to the possibility of system hacking. There are inhibiting entities such as digital infrastructure that are prone to disputes and incentives in the form of preparations that are carried out according to plan. CTAS implementation will begin in 2024 and is expected to achieve the expected goals, namely ease of tax administration and strengthening of the administrative integration system.

Ideas and Measures for Promoting Modernization of Tax Administration in the New Era in the Context of Smart Tax Construction

The practice of China's tax modernization construction has accumulated rich experience for the modernization of tax collection and management, while the new era, accelerating the modernization construction with Chinese characteristics, has put forward new requirements of the times for the modernization of tax collection and management. The Opinions on Further Deepening the Reform of Tax Collection and Administration of the Central Office and the State Office pointed out that it is necessary to comprehensively push forward the digital upgrading and intelligent transformation of tax collection and administration, and to holistically and integrally improve the effectiveness of tax governance. The State Administration of Taxation has also repeatedly requested that the construction of smart tax supported by tax big data should be pushed forward to provide more powerful data support for the modernization of tax collection and management. This paper takes smart tax construction as the research background, analyzes the problems of modernization of tax collection and administration in the new period, and on this basis puts forward the suggestions of optimizing system design, strengthening tax governance by numbers, transforming the way of tax management and service, and perfecting the mechanism of talent cultivation, etc., in an attempt to explore the path of development of modernization of tax collection and administration.

Quantifying the Revenue Yields from Tax Administration Reforms

Quantifying the Revenue Yields from Tax Administration Reforms

Optimizing Tax Apparatus Performance Management in Implementing a Modern Tax Administration System

Taxes play a vital role in overseeing state finances, and enhancing the performance management of tax officials is essential for achieving the efficiency and long-term viability of the tax system. This research aims to examine and determine the most effective approaches to managing the performance of the tax apparatus, particularly in implementing a contemporary tax administration system. This study employs a qualitative methodology utilizing descriptive techniques. The research findings indicate that implementing tax administration reform in Indonesia, mainly through using advanced information and communication technology such as e-registration, e-filing, and e-billing, has resulted in a favorable outcome by enhancing efficiency, responsiveness, and transparency in tax management. These measures facilitate endeavors to enhance taxpayer adherence and bolster tax revenues. In addition, enhancing the performance management of the Tax Apparatus, particularly Account Representatives, in implementing a contemporary tax administration system entail employing crucial tactics such as ongoing training, utilization of specific performance metrics, and integration of information technology such as CRM. Providing rewards and professional growth chances for strong performance can enhance motivation while implementing open feedback methods and constant review can serve as a foundation for improvement. Cultivating interpersonal skills is equally crucial for enhancing connections with taxpayers. Continuous monitoring ensures that performance management techniques stay up-to-date and adaptable to changes in the tax environment. This helps achieve optimal tax revenue goals and enhances taxpayer compliance within the framework of modern tax administration.

Taxation, democracy, and inequality in Sub‐Saharan Africa: Relevant linkages for sustainable development goals

AbstractGiven that the linear linkage between taxation and income inequality remains unclear, especially in Sub‐Saharan African countries, it is critical to explore how the redistribution channel of the tax system could mitigate income inequality within democratic institutions. Using the instrumental variable approach for robust analysis, this study explores the panel dataset of 42 Sub‐Saharan African countries from 1996–2014. The following findings are documented. First, both unconditional linkages between taxation and democracy overwhelmingly reduce income inequality. Second, harnessing democracy with taxation has a net effect that reduces income inequality. Overall, this study establishes that a strong democratic system strengthens the tax system for an income redistribution strategy to enhance income equality. This study is relevant for the achievement of Sustainable Development Goal (SGD) 1 on poverty reduction, SDG 10 on inequality, and SDG 16 on strong institutions.Related ArticlesGatchair, Sonia D. 2015. “Ideology and Interests in Tax Administration Reform in Jamaica.” Politics & Policy 43(6): 887–913. https://doi.org/10.1111/polp.12139.Nchofoung, Tii, Simplice Asongu, Vanessa Tchamyou, and Ofeh Edoh. 2022. “Gender, Political Inclusion, and Democracy in Africa: Some Empirical Evidence.” Politics & Policy 51(1): 137–55. https://doi.org/10.1111/polp.12505.Wang, Yingyao. 2017. “Why Tax Policy Is Not Politics in China: Public Finance and China's Changing State‐Society Relations.” Politics & Policy 45(2): 194–223. https://doi.org/10.1111/polp.12200.

Fighting Corruption Through Tax Administration Reform: Vietnam Case Study

Corruption in tax administration is attracting much attention worldwide due to its strong negative impact on economic activity, especially impact on tax revenue and budget deficit. Corruption erodes trust and causes loss of state budget revenue, especially in the tax field. In the process of digital transformation with many reforms in the tax administration mechanism in Vietnam, corruption in tax administration has been somewhat limited. This study is based on political and legal analysis by normative method or theoretical legal research, taking Vietnam as research evidence. On the basis of the current status of Vietnam's tax administration mechanism in the past time, identifying corrupt acts in the tax administration process through tax management practices, the research results show that tax administration with current The modernization of tax administration is the basic basis to limit corruption in the tax field. With the reform of tax administration by simplifying tax processes and procedures, reducing the arbitrary situation and abuse of tax laws by tax officials, transferring the entire tax collection function to modern tax management - a modern tax administration is needed to keep up with the growing trend. the complexity of the operations of companies in the age of globalization.

The effect of ease of use of M-Pajak and ease of use of e-form on MSMEs taxpayer compliance

When a taxpayer complies with all of his or her tax obligations and uses all of their tax privileges, this is known as taxpayer compliance. Tax revenue increases with better taxpayer compliance; conversely, when taxpayer compliance is low, tax revenue and state treasury both decline. As a result, DJP introduced the M-Pajak application and E-Form system, one of the tax administration reforms, with the goal of facilitating taxpayer access to more individualized, quicker, and MSMEs-friendly income tax reporting. The purpose of this study is to determine whether MSMEs taxpayer compliance in Pematang Serai Village, Langkat Regency, North Sumatra, is influenced by how simple M-Pajak and E-Form are to use. 35 MSME taxpayers made up the sample. The research methodology is quantitative, and descriptive statistics with multiple linear regression techniques are used for data analysis. According to the study's findings, M-Pajak and E-Form accessibility both partially and concurrently influence taxpayer compliance.This demonstrates that the simpler a DJP application or system is to use, the higher the rate of taxpayer compliance will be because it's simpler for taxpayers to comply with their tax responsibilities.

Application of Autoregressive Distributed LAG Models to Evaluating Malawi’s Tax Revenue Productivity and Tax Administration Reform

This analysis demonstrates the application of autoregressive distributed lag (ARDL) models to gauge tax revenue performance in both the short term and the long term, as well as how to incorporate dummies to gauge changes following a popular semi-autonomous tax authority reform. To measure performance, we estimated tax buoyancy, defined as the percentage change in tax revenue in response to the percentage change in the tax base. Using data from 1979 to 2017 from annual economic reports and the United Nations University Government Revenue Dataset, the results show that personal income tax is the most productive of the direct taxes, while VAT is the most productive of the indirect taxes. However, underperforming customs duties estimates were evidence of deep-seated problems, calling for urgent intervention to curb tax evasion, fraud and corruption. Overall, estimates also suggest that tax revenue productivity improved following the tax reform, although the study could not fully credit the improvement to the reform itself.

Pengaruh Sanksi Perpajakan dan Reformasi Perpajakan terhadap Kepatuhan Wajib Pajak Orang Pribadi dengan Kebijakan Relaksasi PPh 21 sebagai Variabel Moderating

This study aims to determine the effect of tax sanctions, tax administration reform on individual taxpayer compliance with the pph 21 relaxation policy as a moderating variable. The population in this study are employees. The simple random sampling method, this sampling provides equal opportunities for each population to selected to be a member of the sample. This research distributed questionnaires. This study uses SmartPLS. For this research that tax sanctions affect individual taxpayer compliance, and tax reform affects individual taxpayer compliance, but the pph 21 relaxation policy has not been able to moderate tax sanctions on individual taxpayer compliance and has not been able to moderate tax reform on mandatory compliance. personal tax.

The Effect of Green Governance on Organizational Performance Moderated by Tax Administration Reform

The purpose of this research to describe the effect of the implementation of green governance on organizational performance and to determine whether the tax administration system renewal can strengthen the application of green governance on organizational performance.Methodology-The population of this research is the employees of the tax office throughout Indonesia. The sample of this research is senior employees, employees who have echelon IV positions and at least have the position of section head.Research Findings-This research resulted in a conclusion, namely the application of green governance results in better organizational performance. Tax administration system renewal resulted in decreased organizational performance. Tax administration system renewal can increase influence of green governance on organizational performance for the better.Theoretical contribution/Originality: Researchers add a new dimension to the green governance variables, namely participation and law enforcement.

ANALYSIS OF MISALIGNED PROFITS AND TAX RISKS FROM AGGREGATED AND ANONYMISED COUNTRY-BY-COUNTRY REPORT

Indonesia faces a 15.6% decline in tax revenues due to the COVID-19 pandemics. As fiscal headroom tightens, the tolerance for international tax avoidance will decrease and globally untaxed income will be prioritised. As a part of 2020-2024 Strategic Plan, DGT intends to carry out tax administration reforms through the development of Compliance Risk Management (CRM). This study attempts to highlight the potential of Country-by-Country Report (CbCR) data to be used in CRM. We propose two methodologies to assess tax risks, using misaligned profits and OECD tax risk assessment indicators. In both measures, Australia, Cayman Islands, Iraq, Malaysia, Niger, and Singapore are flagged as risky jurisdictions, which could be used to inform CRM function to prioritize auditing affiliated party transaction related to these jurisdictions. The methodologies outlined here could also be replicated for individual CbCR data to create a risk profile that is more tailored to each MNE group.

Do tax administration reforms improve tax revenue performance in Togo? Empirical insights from experimental approaches

AbstractTax administration reforms are often motivated by their potential to improve tax revenue mobilisation. However, their actual impacts are difficult to quantify. Using cross‐country panel data over the period 1990–2018, this paper analyses the impact of the 2012 tax administration reform on tax revenue performance in Togo. The estimation procedures that we follow are the synthetic control method (SCM) and the propensity score matching (PSM). After comparing the observed evolution of Togo's tax revenue output in the period 2013–2018 with that of synthetic Togo, our estimates show an accumulated gain in the tax‐to‐GDP ratio of a yearly average of about 2.8%. The results pass a battery of checks. Hence, the paper concludes that after almost 9 years of reform, the improvement in Togo's tax performance is remarkable. However, more tax‐related and institution‐related reforms are crucial to make Togo's tax system more buoyant and sustainably improved tax revenue mobilisation.

Exploring the possible sources of fiscal space for health in India: insights from political regimes

BackgroundRising healthcare costs and poor access to health services have become a significant concern for policy-makers; therefore, efforts must be made to generate fiscal space through alternative revenue measures in resource-poor economies. This study attempts to identify possible sources of fiscal space for health in India across political regimes.MethodsThe study followed a descriptive approach to examine the political commitment towards health sector development by estimating the trend of growth in fiscal space indicators over the political regimes from 1998–1999 to 2021–2022 using a dummy variable regression model.ResultsWe found four possible sources of fiscal space for health, which include (1) raising domestic revenue mobilization, (2) generating alternative revenue collection mechanisms, (3) prioritizing health through expenditure management and (4) effective utilization of central transfer. Fiscal space measures such as goods and services tax reform, collection of health-specific tax, higher excise duty on tobacco products, cooking gas subsidies to poor people, tax administration reform and direct beneficiary transfer of health services could be alternative revenue mobilization channels for fiscal space for health.ConclusionThe study reveals that the central government has a political commitment to generating revenue through various fiscal policy reforms. Health has been prioritized over the period, but there is less evidence of health-related political commitment for an increased share of health expenditure to total budgetary allocation. During the last 2 years, however, the health budget has been prioritized due to the COVID-19 pandemic crisis despite slower economic growth in India. This study will be a policy document for fiscal space analysis from a political-economic perspective, and the role of the ministry of finance can be assessed through administrative data and documents.