Effect of taxation modernization on tax compliance

This study aims to examine the effect of using e-filing, the use of e-billing and administrative
fines on individual taxpayer compliance in Badung Regency

Objectives of the study

1. The Effect of e-filing (X1) on Compliance with Individual Taxpayers in Badung

Regency (Y)
2. The Effect of e-billing (X2) on the Compliance of Individual Taxpayers in Badung
Regency (Y)
3. The Effect of Administrative Fines Sanctions (X3) on Compliance with Individual
Taxpayers in Badung Regency (Y)

Theories used in the study

The study used the Attribution theory

Attribution theory states that a person's behavior is determined by a combination of internal

forces (internal forces) which are factors that originate from within a person such as ability or
effort and external strength, such as difficulty in assignments or luck (Suartana, 2010;
Pandey, 2017; Lisa, 2018). Based on this, someone is motivated to understand the
environment and the causes of certain events. Based on this theory, the compliance of
taxpayers can be influenced by internal factors and external factors of the taxpayer

Measurement of variables

The two main variables examined in this research were e-filing and e-billing. Both variables
were measured in terms of usability and ease of use.

Methodology

The research methodology employed in the study was the positivist paradigm, which is
grounded on the belief that human knowledge can only be attained through scientific
observation and experimentation. This approach enabled the researchers to collect and
analyze quantitative data in an objective manner, allowing them to draw reliable conclusions
and make informed decisions based on the results.

The primary method of data collection utilized in this study was through the use of
questionnaires.
The statistical software, SPSS, was utilized to conduct a thorough analysis of the data
gathered to determine the extent to which the deployment of modern technology affects tax
compliance. This involved examining various factors related to technology and their impact
on different aspects of tax compliance

Findings

The Finding was presented according to the objectives of the study

Objective one

The Effect of e-filing (X1) on Compliance with Individual Taxpayers in Badung Regency (Y)

After conducting multiple linear regression analysis, it was found that e-filing has a positive
and significant impact on the compliance of individual taxpayers in Badung Regency. A
significance value of 0.000 shows that there is a strong positive relationship between e-filing
usage and individual tax compliance. This value is smaller than the specified significance
level (ɑ = 0.05), and the coefficient value is 0.157. This means that as the usage of e-filing
increases, so does individual tax compliance.

Objective two

The Effect of e-billing (X2) on the Compliance of Individual Taxpayers in Badung Regency
(Y)

After conducting multiple linear regression analysis, it was found that the use of e-billing has
a positive and significant effect on individual taxpayer compliance in Badung Regency. The
significance value of 0.000 is smaller than the predetermined significance level of 0.05.
Additionally, the coefficient value is 0.180. This implies that as the usage of e-billing
increases, the level of individual tax compliance also increases.
Effects of online tax system on tax compliance among small taxpayers in Meru county,
kenya

objectives

Examine the extent to which taxpayers use filing system

Effects of Online Tax Registration on Tax Compliance

Effects of Online Tax Return Filing on Tax Compliance

Effects of the Online Tax Remittance on Tax Compliance

Theories used in the study

Ability to pay theory

This theory was developed by Smith and Pigou (1903). The theory postulates that “The
subjects of every state ought to contribute towards the support of the government, as nearly as
possible, in proportion to their respective abilities; that is, in proportion to the revenue which
they respectively enjoy under the protection of the state.” Most economists argue income
should be the basis for measuring the ability to pay when determining tax liability.

The researcher believes that modern tax systems aim to achieve fairness and justice in
taxation across the population by relying on income and other personal taxes.

Benefit theory

The benefit approach was initially developed by Knut Wicksell (1896) and Erik Lindhl
(1919). According to this theory, the state should levy taxes on individuals according to the
benefit conferred on them. The more benefits a person derives from the activities of the state,
the more he should pay to the government.

Measurement of variables

Methodology

The research problem was solved using descriptive study design. This design enabled an
analysis of the relationship between technology and levels of tax compliance in terms of on-
line filing of tax returns and on-line remittance of taxes due.
The stratified random sampling method was used in the study. Stratification was done for the
taxpayers based on their sectors, i.e. (Transport, Manufacturing, Agriculture, Hospitability,
Energy, Real estate) resulting in seven strata.

The study used both primary and secondary data. Primary data was obtained by use of
structured questionnaire containing both open-ended and close-ended questions. Secondary
data to support the growth of tax compliance behaviour in Kenya among small taxpayers
together with the trend was obtained from revenue reports of KRA’s (Research & Corporate
Affairs Department, 2013).