The potential of an artificial intelligence (AI) application for the tax administration system’s modernization: the case of Indonesia

Saragih, Arfah Habib; Reyhani, Qaumy; Setyowati, Milla Sepliana; Hendrawan, Adang

doi:10.1007/s10506-022-09321-y

Cited by 35 publications

(22 citation statements)

References 34 publications

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“…Secondly, to improve their performance, tax authorities must increase their governance and use of various information technologies (such as big data analytics, blockchain, artificial intelligence, extensible business reporting language and so on). Governance of information technology is not only essential in the private sector but also in the public sector (Ali and Green, 2007), including tax authorities (Saragih et al , 2022). The use of emerging technologies facilitates better tax administrations (Rosid, 2022; Saragih et al , 2022; Setyowati et al , 2022).…”

Section: Discussionmentioning

confidence: 99%

“…Governance of information technology is not only essential in the private sector but also in the public sector (Ali and Green, 2007), including tax authorities (Saragih et al , 2022). The use of emerging technologies facilitates better tax administrations (Rosid, 2022; Saragih et al , 2022; Setyowati et al , 2022). Tax authorities in the USA, for example, have long used big data analytics and machine learning technology, as well as other advanced information technologies, to map taxpayer profiles and conduct tax audits (Rubin, 2020; Neuman and Sheu, 2021).…”

Section: Discussionmentioning

confidence: 99%

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The impact of managerial ability on corporate tax risk and long-run tax avoidance: empirical evidence from a developing country

Saragih

Ali

2023

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Purpose The purpose of this study is to examine the impact of managerial ability on corporate tax risk and long-term tax avoidance using the upper echelons theory. Design/methodology/approach This study uses a quantitative method with regression models, using a sample of listed firms on the Indonesia Stock Exchange from 2011 to 2018. Findings The regression results report that managerial ability negatively influences tax risk and positively impacts long-run tax avoidance. Companies with more able managers have a relatively lower tax risk and greater long-run tax avoidance. The results reveal that firms with managers that possess greater abilities are more committed to long-run tax avoidance while concurrently maintaining a lower level of their tax risk. The impacts the authors report are statistically significant and robust, as proved by a series of robustness checks and additional tests. Research limitations/implications This study only includes firms from one developing country. Practical implications The empirical results might be of interest to board members while envisaging the benefits and costs of appointing and hiring managers, as well as to the tax authority and the other stakeholders interested in apprehending how managerial ability influences corporate tax risk and long-run tax avoidance practices simultaneously. Originality/value This study proposes and tests an explanation for the impact of managerial ability on corporate tax risk and long-run avoidance simultaneously in the context of an emerging country.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

The impact of managerial ability on corporate tax risk and long-run tax avoidance: empirical evidence from a developing country

Saragih

Ali

2023

Self Cite

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“…The literature emphasises the importance of modernising regulatory agencies by investing in human resources (HR), improving governance and organisational structures and leveraging ICT (Kloeden, 2011; Saragih et al , 2022). The recruitment and training of skilled professionals and tax experts can improve the quality of taxation services offered, leading to a better experience for taxpayers (Pandiangan, 2008).…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring stakeholder perceptions of tax reform failures and their proposed solutions: a developing country perspective

Hasan

Sheikh²,

Farooq

2023

MEDAR

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Purpose This study aims to examine why tax reforms fail and explores how tax collection can be improved within a developing country context. Design/methodology/approach Data comprise 28 semi-structured interviews with taxpayers, tax experts and tax authority personnel based in Pakistan. The results are analysed using a combined lens of taxpayer trust and tax agencies’ capabilities. Findings Tax reforms failed to build taxpayers’ trust and tax agencies’ capabilities. Building trust is challenging and demands extensive ongoing engagement with taxpayers while yielding gradual permanent results. This requires enhancing confidence in government; educating taxpayers; removing complexities; introducing transparency and accountability in tax agencies’ operations and the tax system; promoting procedural and distributive justice; and reversing perceptions of corruption through reconciliation and stakeholder inclusivity. Developing tax agencies’ capabilities requires upgrading outdated technologies, systems and processes; implementing governance and organisational reforms; introducing an oversight board; and recruiting and training skilled professionals. Practical implications The findings can assist policymakers and tax collection authorities in understanding why tax reforms fail and identifying potential solutions. Originality/value This study contributes to the emerging literature by exploring tax administration failures in developing countries. It contributes to the literature by engaging stakeholders to understand why reforms fail and potential solutions to stimulate tax revenues.

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“…Government organizations also use ICT; as written by (Pang et al, 2014), several governments and public sector organizations invest in information technology to make government management more effective. In recent years, the Indonesian government has launched a program to use information technology, one of which is the Directorate General of Taxes (DGT), which has launched a tax modernization program (Saragih et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

Utilization of Information and Communication Technology in the Tax Administration System to Increase Taxpayer Compliance

Djafri¹,

Damawati²,

Suharto³

et al. 2023

ijtc

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Adaptation to changes based on information and communication technology (ICT) causes obstacles and community preparedness for the 5.0 age, also known as society 5.0. This necessitates the digital revolution of all disciplines, including taxation. Government efforts to promote taxpayer compliance include creating a contemporary tax administration system encompassing organizational structure, business processes, information and communication technology, human resource management, and applying good governance. In addition to the tax administration system, taxpayer knowledge also influences the level of taxpayer compliance. This study's objective is to investigate the use of ICT in a modern tax administration system to enhance taxpayer compliance. The main theory in this research is positive accounting theory which was developed by Watt & Zimmerman in 1986. This study employs a qualitative approach and descriptive methodologies. This study demonstrates that the incorporation of ICT is a component of the modernization of the tax administration system. Application of the e-tax system, which comprises E-Registration, E-SPT, E-Filing, E-Payment, Blockchain, Artificial Intelligence (AI), Chatbots, and Biometric Identification, can constitute the use of ICT in the tax administration system. Ease of service, particularly in filling out SPT electronically, or e-SPT, is the method for boosting taxpayer compliance with the modernization of the tax administration system utilizing ICT.

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The potential of an artificial intelligence (AI) application for the tax administration system’s modernization: the case of Indonesia

Cited by 35 publications

References 34 publications

The impact of managerial ability on corporate tax risk and long-run tax avoidance: empirical evidence from a developing country

The impact of managerial ability on corporate tax risk and long-run tax avoidance: empirical evidence from a developing country

Exploring stakeholder perceptions of tax reform failures and their proposed solutions: a developing country perspective

Utilization of Information and Communication Technology in the Tax Administration System to Increase Taxpayer Compliance

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