Analysis of the Effect of Tax Compliance, Electronic Tax Reporting Systems, and Management Perceptions on the Effectiveness of Tax Planning Strategies in Manufacturing Companies in Jakarta
DOI:
https://doi.org/10.58812/wsaf.v2i01.713Keywords:
Tax Compliance, Electronic Tax Reporting Systems, Management Perceptions, Tax Planning Strategies, Manufacturing CompaniesAbstract
This study explores the intricate interplay of tax compliance, electronic tax reporting systems (ETRS) usage, and management perceptions in shaping tax planning effectiveness in Jakarta's manufacturing companies. Using a quantitative approach, a survey collected responses from 115 manufacturing enterprises, analyzed through Structural Equation Modeling with Partial Least Squares (SEM-PLS). Significant positive correlations were found between tax compliance and ETRS usage, ETRS usage and tax planning effectiveness, and management perceptions and tax planning effectiveness. ETRS usage emerged as a mediator in the relationship between tax compliance and tax planning effectiveness, while management perceptions acted as a moderator in the link between ETRS usage and tax planning effectiveness. The study provides valuable insights into the dynamics influencing tax planning in the manufacturing sector, suggesting a synergistic approach for practitioners and offering policymakers guidance on technology adoption and ethical considerations in tax planning.
References
P. Mukhopadhyay, “A Case Study on Importance of Taxation on Developing the Modern Society,” Int. J. Adv. Res. Sci. Commun. Technol., pp. 684–688, Jan. 2023, doi: 10.48175/IJARSCT-8026.
S. Ouyang and Y. Fang, “Enterprise Financial and Tax Risk Management Methods under the Background of Big Data,” Math. Probl. Eng., vol. 2022, pp. 1–13, Jul. 2022, doi: 10.1155/2022/5831866.
T. S. Seliutina, “Improvement and Transformation of Companies’ Tax Management Practices,” Russ. J. Leg. Stud., vol. 9, no. 4, pp. 63–70, 2022.
M. Kooshkebaghi, H. Dargahi, and S. Emamgholipour, “The Role of Taxation Measures in the Management of Harmful Products, Services, and Practices: A Qualitative Study,” 2022.
N. Innola, C. Roman, C. Nelia, M. Mykola, and R. Andrii, “Ensuring of Financial Stability of the Enterprise by Financial Management Tools,” in International Conference on Business and Technology, Springer, 2021, pp. 783–792.
T. B. Kusuma and F. Firnanti, “Do Capital Intensity and Profitability Affect Tax Avoidance in Manufactuting Company in Indonesia?,” J. Accounting, Bus. Manag., vol. 30, no. 1, pp. 78–85, 2023.
R. S. Simanjuntak, G. N. Sinaga, W. Anggraini, A. K. Gurning, and E. N. Simorangkir, “The Effect of Tax Aggressiveness, Solvency, Profitability, Audit Opinion, and Financial Distress on Audit Delays in Manufacturing Sector Companies Listed on the Indonesia Stock Exchanged in 2018-2021,” Asian J. Econ. Bus. Account., vol. 23, no. 12, pp. 94–105, 2023.
A. G. Asalam and A. I. Anggini, “The Influence of Executive Characters, Leverage, and Managerial Ownership on Tax Avoidance (Empirical Study of Manufacturing Companies Listed on Indonesia Stock Exchange (IDX) in 2018-2020).” 2023.
W. Febrian and A. Firmansyah, “Corporate Governance, Tax Plannings and Firm Risk: Empirical Study of Indonesian Manufacturing Companies,” J. Akunt. dan Bisnis, vol. 22, no. 2, pp. 220–242, 2022.
A. Daito, “Leverage, Company Size, and Audit Quality Effect on Tax Avoidance in Manufacturing Companies Listed on the Indonesia Stock Exchange and Malaysia Exchange for the 2015-2019 Period,” J. Account. Financ. Manag., vol. 3, no. 6, pp. 274–284, 2023.
N. M. Siregar and N. Aliah, “IMPLEMENTATION OF TAX PLANNING IN VILLAGE FUNDS,” Int. J. Econ. Business, Accounting, Agric. Manag. Sharia Adm., vol. 3, no. 3, pp. 689–702, 2023.
I. Putri and . K., “PENGARUH PERENCANAAN PAJAK TERHADAP MANAJEMEN LABA DENGAN UKURAN PERUSAHAAN SEBAGAI VARIABEL MODERASI,” Inspirasi Ekon. J. Ekon. Manaj., vol. 3, pp. 1–7, Jan. 2022, doi: 10.32938/ie.v3i3.1951.
M. Polyakova and A. Nosov, “Economic Justification of tax Planning,” Accounting. Anal. Audit., vol. 10, pp. 44–54, Apr. 2023, doi: 10.26794/2408-9303-2023-10-1-44-54.
A. Karina and H. Herdiyanti, “Effect of Tax Planning, Deferred Tax Expense and Company Size Against Profit Management (Empirical Study on Manufacturing Companies Listed on IDX 2015-2019),” J. Ilmu Manaj. dan Ekon., vol. 12, no. 2, pp. 61–68, 2020.
T. P. Nugrahanti and A. S. Pratiwi, “The Remote Audit and Information Technology: The impact of Covid-19 Pandemics,” JABE (JOURNAL Account. Bus. Educ., vol. 8, no. 1, pp. 15–39, 2023.
M. C. Bett, “Factors Affecting Tax Compliance by Small and Medium Enterprises in Sotik Sub-County in Bomet County in Kenya.” United States International University-Africa, 2020.
T. P. Nugrahanti, “Analyzing the Evolution of Auditing and Financial Insurance: Tracking Developments, Identifying Research Frontiers, and Charting the Future of Accountability and Risk Management,” West Sci. Account. Financ., vol. 1, no. 02, pp. 59–68, 2023.
T. Nyamwanza, S. Mavhiki, D. Mapetere, and L. Nyamwanza, “An analysis of SMEs’ attitudes and practices toward tax compliance in Zimbabwe,” Sage Open, vol. 4, no. 3, p. 2158244014542776, 2014.
N. Faridy, R. Copp, B. Freudenberg, and T. Sarke, “Complexity, compliance costs and non-compliance with VAT by small and medium enterprises in Bangladesh: is there a relationship?,” in Australian Tax Forum, 2014, pp. 281–328.
- Kurniawan, A. Maulana, and Y. Iskandar, “The Effect of Technology Adaptation and Government Financial Support on Sustainable Performance of MSMEs during the COVID-19 Pandemic,” Cogent Bus. Manag., vol. 10, no. 1, p. 2177400, 2023, doi: https://doi.org/10.1080/23311975.2023.2177400.
Y. Iskandar, J. Joeliaty, U. Kaltum, and H. Hilmiana, “Systematic review of the barriers to social enterprise performance using an institutional framework,” Cogent Bus. Manag., vol. 9, no. 1, p. 2124592, 2022.
Y. Iskandar, “Strategic Business Development of Polosan Mas Ibing with the Business Model Canvas Approach,” in International Conference on Economics, Management and Accounting (ICEMAC 2021), Atlantis Press, 2022, pp. 164–179.
S. Hossaion, M. Bairagi, J. Aktar, U. Honey, and S. A. Mithy, “The Evolution of Bitcoin: A Historical Analysis and Future Prospects,” iRASD J. Econ., vol. 5, no. 2 SE-Articles, pp. 241–252, Jun. 2023, doi: 10.52131/joe.2023.0502.0124.
S. Wang and H. K. Kim, “The Impacts of Carbon-neutral Renewable Energy Characteristics on Purchase Intention: Focusing on Chinese Electric Vehicles,” J. Logist. Informatics Serv. Sci., vol. 10, no. 1, pp. 203–220, 2023, doi: 10.33168/JLISS.2023.0111.
D. Sari and R. M. Qibthiyyah, “Tax Revenue and Income Inequality,” J. Perenc. Pembang. Indones. J. Dev. Plan., vol. 6, no. 2, pp. 155–172, 2022.
R. Y. Bramasta and Y. Budiasih, “THE EFFECT OF PROFITABILITY, BOOK TAX DIFFERENCE AND TAX PLANNING ON INCOME MANAGEMENT IN AUTOMATICALLY SUB-SECTOR MANUFACTURING COMPANIES AND COMPONENTS REGISTERED IN INDONESIA STOCK EXCHANGE,” Int. J. Econ. Educ. Entrep., vol. 1, no. 1, pp. 22–30, 2021.
N. Lüdemann, A. Shiba, N. Thymianis, N. Heist, C. Ludwig, and H. Paulheim, “A knowledge graph for assessing agressive tax planning strategies,” in The Semantic Web–ISWC 2020: 19th International Semantic Web Conference, Athens, Greece, November 2–6, 2020, Proceedings, Part II 19, Springer, 2020, pp. 395–410.
J. F. Hair, J. J. Risher, M. Sarstedt, and C. M. Ringle, “When to use and how to report the results of PLS-SEM,” Eur. Bus. Rev., vol. 31, no. 1, pp. 2–24, 2019, doi: https://doi.org/10.1108/EBR-11-2018-0203.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Loso Judijanto, Lia Nurina
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Facebook 
Instagram 
Twitter 
Youtube 
+62 821 1557 5700 
info@westscience-press.com 