Impact of digital tax administration and trust in tax authorities on tax compliance: audit effectiveness moderation.
Impact of digital tax administration and trust in tax authorities on tax compliance: audit effectiveness moderation.

Summary/Abstract: This research evaluates the direct effects of digital tax administration (DTA) and trust in tax authorities (TITA) on Corporate Taxpayer Compliance (CTC) in Indonesia. Additionally, it investigates how tax audit effectiveness (TAE) moderates these relationships to resolve discrepancies in prior research regarding the impact of digital tools on compliance behavior. Adopting a quantitative approach, the research analyzed survey data collected from 537 Chief Financial Officers and tax managers of companies listed on the Indonesia Stock Exchange in 2024. The research model, grounded in the Technology Acceptance Model, Theory of Planned Behavior, and Slippery Slope Framework, was tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results confirm that DTA and trust significantly enhance CTC. Crucially, TAE functions as a quasi-moderator; it acts as an independent predictor of compliance while simultaneously strengthening the positive influence of both digital administration and trust. This indicates that credible enforcement mechanisms reinforce the utility of digital transparency and voluntary cooperation. The research cross-sectional design limits causal inferences, and reliance on self-reported data may introduce bias. Theoretically, the findings imply that trust and enforcement are mutually reinforcing pillars rather than substitutes. Practically, regulators are advised to integrate digital infrastructure with credible audit strategies to maximize revenue mobilization. This research contributes by expanding digital administration measurements to include cybersecurity and rights implementation within the specific context of the Indonesian «Coretax» rollout. It bridges the gap between voluntary and enforced compliance theories by demonstrating that effective audits are essential for maximizing the benefits of digital tax systems.

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