CORE TAX SYSTEM AS AN INSTRUMENT TO STRENGTHEN CORPORATE GOVERNANCE IN TAX ADMINISTRATION
DOI:
https://doi.org/10.54199/mj7ytq25Keywords:
Core Tax System, Corporate Governance, Tax AdministrationAbstract
This study seeks to examine the impact of the Core Tax System on strengthening corporate governance in tax administration by analyzing several governance dimensions, including transparency, accountability, operational efficiency, and internal control effectiveness. This study uses quantitative data with a purposive sampling method, where the population consists of tax officers and registered taxpayers, and the research sample includes 162 respondents involved in the implementation of the Core Tax System. The data were processed using SPSS version 25. The findings of this study indicate that the Core Tax System has a significant positive effect on transparency and operational efficiency. Furthermore, the system demonstrates a positive and significant relationship with accountability and internal control effectiveness, which collectively contribute to strengthening corporate governance in tax administration. This research provides practical benefits for tax authorities in optimizing digital transformation strategies to enhance governance quality. The findings deliver valuable insights for policymakers in designing integrated digital tax systems that reduce discretionary authority, improve compliance monitoring, and minimize corruption risks. With this research, it is expected that tax institutions will continue improving system integration and data governance to ensure sustainable institutional performance. The scope of this study is limited to tax administration institutions implementing the Core Tax System during the 2021–2025 reform period. Therefore, the results should not be generalized to other public sector institutions with different digital governance structures and regulatory environments.
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