Tax Compliance Transformation: The Role of E-Tax System and Money Ethics Through Taxpayer Behavioral Intentions

Abstract

This study examines the impact of attitudes toward the e-tax system, e-tax system adoption,
and money ethics on tax compliance, with taxpayer behavioral intentions serving as a
mediating variable. A mixed-method approach, integrating both qualitative and
quantitative methodologies, was employed. Data were collected through semi-structured
interviews and a survey of 200 culinary MSME respondents in Central Java. The analysis
was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The
findings reveal that taxpayer behavioral intentions significantly and positively influence tax
compliance. However, attitudes toward the e-tax system exhibit a significant negative effect.
In contrast, e-tax system adoption positively and significantly impacts tax compliance, while
money ethics, though negatively related, has an insignificant effect. Additionally, attitudes
toward the e-tax system negatively affect taxpayer behavioral intentions, whereas e-tax
system adoption has a significant positive impact. Money ethics again show a negative but
statistically insignificant effect on behavioral intentions. Notably, taxpayer behavioral
intentions mediate only the relationship between e-tax system adoption and tax compliance.
This study provides valuable insights for tax authorities, emphasizing the need for policies
that enhance MSME tax compliance by addressing behavioral barriers and optimizing the
adoption of digital tax systems.