The Impact of Remuneration and Modernization Tax Information System on Employee Performance

Abstract

This study aims to determine and analyze the effect of remuneration and modernization of tax information systems on employee performance at the tax service office in Malang, East Java, Indonesia. The analysis in this study uses multiple linier regressions to answer research problems. This study has 84 respondents. The results of this study show that remuneration and modernization of the tax information system has a significant effect on performance of employees in the Malang tax service office. This finding is indicated by the results of the F test (F count) of 10,140 which is greater than the obtained F table value 3,109. This finding is expected to give contribution in decision making process related with policy of remuneration and modernization information system in tax service office.

Determination of Individual Taxpayer Compliance in Indonesia: A Case Study

“…Then, a large percentage of the partial determination coefficient value of the tax administration system's modernization on individual taxpayer compliance is 82.63%. Meanwhile, the remaining 17.37% is influenced by other factors not examined in this study, such as quality of tax services, perceptions of the effectiveness of the tax system, tax sanctions, social norms, trust in government, and others (Bunyamin et al, 2020). Results are supported by previous research conducted by Gashenko et al (2017) that modernization of tax administration system positively affects taxpayer compliance, whereas, in Biletska's (2020) research, modernization of tax administration system cannot be used as an effort to increase mandatory compliance tax.…”

“…It shows strong relationships between taxpayer awareness and compliance with individual taxpayers. It is the following theory put forward by experts that taxpayer awareness of tax function, as state financing is needed to increase taxpayer compliance (Bunyamin et al, 2020). Attention becomes compliant taxpayer one of compliance with tax law where stated taxation law is indiscriminate and not escape exceptions, both everywhere, and everyone is same based on provisions applicable on tax laws to avoid administrative sanctions will detrimental to taxpayer himself.…”