Tax Compliance Transformation: The Role of E-Tax System and Money Ethics Through Taxpayer Behavioral Intentions
Abstract
This study examines the impact of attitudes toward the e-tax system, e-tax system adoption, and money ethics on tax compliance, with taxpayer behavioral intentions serving as a mediating variable. A mixed-method approach, integrating both qualitative and quantitative methodologies, was employed. Data were collected through semi-structured interviews and a survey of 200 culinary MSME respondents in Central Java. The analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that taxpayer behavioral intentions significantly and positively influence tax compliance. However, attitudes toward the e-tax system exhibit a significant negative effect. In contrast, e-tax system adoption positively and significantly impacts tax compliance, while money ethics, though negatively related, has an insignificant effect. Additionally, attitudes toward the e-tax system negatively affect taxpayer behavioral intentions, whereas e-tax system adoption has a significant positive impact. Money ethics again show a negative but statistically insignificant effect on behavioral intentions. Notably, taxpayer behavioral intentions mediate only the relationship between e-tax system adoption and tax compliance. This study provides valuable insights for tax authorities, emphasizing the need for policies that enhance MSME tax compliance by addressing behavioral barriers and optimizing the adoption of digital tax systems.
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References
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Maggalatta, A., & Adhariani, D. (2020). For love or money: investigating the love of money, Machiavellianism and accounting students’ ethical perception. Journal of International Education in Business, 13(2), 203–220. https://doi.org/10.1108/JIEB-09-2019-0046
Mangoting, Y. (2018). Quo Vadis kepatuhan pajak? Jurnal Akuntansi Multiparadigma, 9(3), 451–470.
Mohd Yusof, N. A., Ling, L. M., & Wah, Y. B. (2014). Tax non-compliance among SMCs in Malaysia: Tax audit evidence. Journal of Applied Accounting Research, 15(2), 215–234. https://doi.org/10.1108/JAAR-02-2013-0016
Musimenta, D., Nkundabanyanga, S. K., Muhwezi, M., Akankunda, B., & Nalukenge, I. (2017). Tax compliance of small and medium enterprises: a developing country perspective. Journal of Financial Regulation and Compliance, 25(2), 149–175. https://doi.org/10.1108/JFRC-08-2016-0065
Muturi, H. M., & Kiarie, N. (2015). Effects of online tax system on tax compliance among small taxpayers in Meru County, Kenya. Intermational Journal of Economics, Commerce and Management, III(12), 280–297.
Nawawi, A., & Salin, A. S. A. P. (2018). Capital statement analysis as a tool to detect tax evasion. International Journal of Law and Management, 60(5), 1097–1110. https://doi.org/10.1108/IJLMA-03-2017-0024
Night, S., & Bananuka, J. (2018). The mediating role of adoption of an electronic tax system in the relationship between attitude towards electronic tax system and tax compliance. Journal of Economics, Finance and Administrative Science, 25(49), 73–88. https://doi.org/10.1108/JEFAS-07-2018-0066
Nkundabanyanga, S. K., Mvura, P., Nyamuyonjo, D., Opiso, J., & Nakabuye, Z. (2017). Tax compliance in a developing country: Understanding taxpayers’ compliance decision by their perceptions. Journal of Economic Studies, 44(6), 931–957. https://doi.org/10.1108/JES-03-2016-0061
Sugiyono. (2013). Metode Penelitian Pendidikan (Pendekatan Kuantitatif, Kualitatif, dan R&D). Alfabeta.
Taylor, S., & Todd, P. A. (2001). Understanding Informastion Technology Usage: A Test of Competing Models. Information System, 6(2).
Wasao, D. (2014). The effect of online tax system on tax compliance among small taxpayers in east of Nairobi tax district. University of Nairobi.
Yuniarta, G. A., & Purnamawati, I. G. A. (2020). Spiritual, psychological and social dimensions of taxpayers compliance. Journal of Financial Crime, 27(3), 995–1007. https://doi.org/10.1108/JFC-03-2020-0045
Zaidi, S. K. R., Henderson, C. D., & Gupta, G. (2017). The moderating effect of culture on e-filing taxes: evidence from India. Journal of Accounting in Emerging Economies, 7(1), 134–152. https://doi.org/10.1108/JAEE-05-2015-0038
Ajzen. (2005). Attitudes, Personality, and Behavior (2nd ed.). Open University Press.
Al-Debei, M. M., Akroush, M. N., & Ashouri, M. I. (2015). Consumer attitudes towards online shopping: The effects of trust, perceived benefits, and perceived web quality. Internet Research, 25(5), 707–733. https://doi.org/10.1108/IntR-05-2014-0146
Allahverdi, M., & Ortakarpuz, M. (2017). The Effect of E-taxation System on Tax Revenues and Costs : Turkey Case. International Conference on Accounting Studies.
Alm, J. (2019). What Motivates Tax Compliance? Journal of Economic Surveys, 33(2), 353–388. https://doi.org/10.1111/joes.12272
Aydin, A. E., & Selcuk, E. A. (2019). An investigation of financial literacy, money ethics and time preferences among college students A structural equation model. International Journal of Bank Marketing, 37(3), 880–900. https://doi.org/10.1108/IJBM-05-2018-0120
Bazeley, P. (2019). A Practical Introduction to Mixed Methods for Business and Management. SAGE Publications.
Bobek, D. D., Roberts, R. W., & Sweeney, J. T. (2007). The social norms of tax compliance: Evidence from Australia, Singapore, and the United States. Journal of Business Ethics, 74(1), 49–64. https://doi.org/10.1007/s10551-006-9219-x
Chan, C. W., Troutman, C. S., & O’Bryan, D. (2000). An expanded model of taxpayer compliance: Empirical evidence from the United States and Hong Kong. Journal of International Accounting, Auditing and Taxation, 9(2), 83–103. https://doi.org/10.1016/S1061-9518(00)00027-6
Chin, W. W. (1998). The partial least squares approach for structural equation modeling. Modern Methods for Business Research, April, 295–336.
Creswell, J. W., & Creswell, J. D. (2017). Qualitative, Quantitative, and Mixed Methods Approaches. In Sage Publications (4th Editio).
Denzin, N. K., & Lincoln, Y. S. (2011). The Sage Handbook of Qualitative Research. Sage Publications.
Edward, K. S., & Ambrose, J. (2017). Impact of Online tax Filing On Tax Compliance Among Small and Medium Enterprises (MSE) In Kibwezi Sub-County In Kenya. International Journal of Current Research, 9(1), 54196–45206.
Fauziah, F. E., & Murharsito, M. (2019). The Effect of Money Ethics on Ethical Attitutes with Religiosity as the Moderating Variable. Media Ekonomi Dan Manajemen, 34(1), 70–84. https://doi.org/10.24856/mem.v34i1.912
Galib, A., Indrijawati, A., & Rasyid, S. (2018). The Effect Of Spirituality, Subjective Norms And Perceived Behavioral Control On Taxpayer Compliance. Journal of Research in Business and Management, 6(4), 1–7.
Ghozali, I., & Latan, H. (2015). Partial Least Squares, Konsep, Teknik, dan Aplikasi menggunakan Program SmartPLS 3.0 (untuk Penelitian Empiris) (Second). Badan Penerbit Universitas Diponegoro Semarang.
Gwaro, O. T., Maina, D. K., & Kwasira, D. J. (2016). Influence of Online Tax Filing on Tax Compliance among Small and Medium Enterprises in Nakuru Town, Kenya. IOSR Journal of Business and Management (IOSR-JBM), 18(10), 82–92. https://doi.org/10.9790/487X-1810028292
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202
Hidayatulloh, A., & Shofiyah, I. (2023). Determinants of Taxpayer Compliance: Role of Love of Money, Machiavellianism, Whistleblowing System, Religiosity, and Trust in Government. Accounting Research Journal of Sutaatmadja (ACCRUALS), 7(2), 20–32. https://ojs.stiesa.ac.id/index.php/accruals/index
Jayawardane, D. (2016). Taxpayer Attitude and Tax Compliance Decision in Sri Lanka How the Taxpayers ’ Attitudes influence Tax Compliance Decision among individual Taxpayers in Colombo City in Colombo District. International Journal of Arts and Commerce, 5(2).
Johnson, R. B., & Onwuegbuzie, A. J. (2004). Mixed Methods Research: A Research Paradigm Whose Time Has Come. Educational Researcher, 33(7), 14–26. https://doi.org/10.3102/0013189X033007014
Kiconco, R. I., Gwokyalya, W., Sserwanga, A., & Balunywa, W. (2019). Tax compliance behaviour of small business enterprises in Uganda. Journal of Financial Crime, 26(4), 1117–1132. https://doi.org/10.1108/JFC-03-2018-0031
Langdridge, D., Sheeran, P., & Connolly, K. J. (2007). Analyzing additional variables in the theory of reasoned action. Journal of Applied Social Psychology, 37(8), 1884–1913. https://doi.org/10.1111/j.1559-1816.2007.00242.x
Lau, T. C., Choe, K. L., & Tan, L. P. (2013). The Moderating Effect of Religiosity in the Relationship between Money Ethics and Tax Evasion. Asian Social Science, 9(11), 213–220. https://doi.org/10.5539/ass.v9n11p213
Maggalatta, A., & Adhariani, D. (2020). For love or money: investigating the love of money, Machiavellianism and accounting students’ ethical perception. Journal of International Education in Business, 13(2), 203–220. https://doi.org/10.1108/JIEB-09-2019-0046
Mangoting, Y. (2018). Quo Vadis kepatuhan pajak? Jurnal Akuntansi Multiparadigma, 9(3), 451–470.
Mohd Yusof, N. A., Ling, L. M., & Wah, Y. B. (2014). Tax non-compliance among SMCs in Malaysia: Tax audit evidence. Journal of Applied Accounting Research, 15(2), 215–234. https://doi.org/10.1108/JAAR-02-2013-0016
Musimenta, D., Nkundabanyanga, S. K., Muhwezi, M., Akankunda, B., & Nalukenge, I. (2017). Tax compliance of small and medium enterprises: a developing country perspective. Journal of Financial Regulation and Compliance, 25(2), 149–175. https://doi.org/10.1108/JFRC-08-2016-0065
Muturi, H. M., & Kiarie, N. (2015). Effects of online tax system on tax compliance among small taxpayers in Meru County, Kenya. Intermational Journal of Economics, Commerce and Management, III(12), 280–297.
Nawawi, A., & Salin, A. S. A. P. (2018). Capital statement analysis as a tool to detect tax evasion. International Journal of Law and Management, 60(5), 1097–1110. https://doi.org/10.1108/IJLMA-03-2017-0024
Night, S., & Bananuka, J. (2018). The mediating role of adoption of an electronic tax system in the relationship between attitude towards electronic tax system and tax compliance. Journal of Economics, Finance and Administrative Science, 25(49), 73–88. https://doi.org/10.1108/JEFAS-07-2018-0066
Nkundabanyanga, S. K., Mvura, P., Nyamuyonjo, D., Opiso, J., & Nakabuye, Z. (2017). Tax compliance in a developing country: Understanding taxpayers’ compliance decision by their perceptions. Journal of Economic Studies, 44(6), 931–957. https://doi.org/10.1108/JES-03-2016-0061
Sugiyono. (2013). Metode Penelitian Pendidikan (Pendekatan Kuantitatif, Kualitatif, dan R&D). Alfabeta.
Taylor, S., & Todd, P. A. (2001). Understanding Informastion Technology Usage: A Test of Competing Models. Information System, 6(2).
Wasao, D. (2014). The effect of online tax system on tax compliance among small taxpayers in east of Nairobi tax district. University of Nairobi.
Yuniarta, G. A., & Purnamawati, I. G. A. (2020). Spiritual, psychological and social dimensions of taxpayers compliance. Journal of Financial Crime, 27(3), 995–1007. https://doi.org/10.1108/JFC-03-2020-0045
Zaidi, S. K. R., Henderson, C. D., & Gupta, G. (2017). The moderating effect of culture on e-filing taxes: evidence from India. Journal of Accounting in Emerging Economies, 7(1), 134–152. https://doi.org/10.1108/JAEE-05-2015-0038
Published
2024-12-11
How to Cite
NURHAPSARI, Risma; ROHMANIA, Aftuqa Sholikatur; SHOLIHAH, Erlinda.
Tax Compliance Transformation: The Role of E-Tax System and Money Ethics Through Taxpayer Behavioral Intentions.
E-Jurnal Akuntansi, [S.l.], v. 34, n. 12, dec. 2024.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/121057>. Date accessed: 22 feb. 2025.
doi: https://doi.org/10.24843/EJA.2024.v34.i12.p11.
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