HOW E-FILING AFFECTS TAX COMPLIANCE: A STRUCTURAL EQUATION MODEL WITH SERVICE QUALITY AS MEDIATOR

Abstract

This study aims to examine the effect of e-filing implementation on taxpayer compliance with service quality as an intervening variable. The implementation of e-filing is expected to improve the ease and speed of tax reporting, thereby encouraging taxpayers to be more compliant in fulfilling their tax obligations. The data used in this study were obtained from questionnaires distributed to 155 taxpayers as respondents. The sampling technique used was total sampling. Data analysis was conducted using Smart PLS 3.0 software, which allows for simultaneous testing of relationships between variables and mediation effects.

The results indicate that the research model fits the data well, as shown by an SRMR value of 0.074 and an NFI value of 0.761, both approaching the ideal values according to the rule of thumb. Furthermore, hypothesis testing reveals that the implementation of e-filing has a positive and significant effect on service quality, meaning that better e-filing implementation improves taxpayers' perception of service quality. In addition, taxpayer compliance positively affects service quality, indicating that higher levels of compliance are associated with better perceptions of service quality. Moreover, e-filing indirectly affects taxpayer compliance through service quality as an intervening variable, signifying that service quality plays an important mediating role in this relationship. These findings imply that improving the implementation of e-filing should be accompanied by enhancing service quality to effectively increase taxpayer compliance. This study contributes to tax authorities in formulating digitalization strategies for tax services that focus not only on technology but also on the quality of services provided to taxpayers.