THE EFFECT OF E-BILLING USAGE, SYSTEM QUALITY, AND TAX SANCTIONS ON TAXPAYER COMPLIANCE

Abstract

Purpose: This study's goal is to investigate the effects of e-billing usage, system quality, and tax penalties on taxpayer compliance, providing empirical evidence on how these factors influence compliance levels.

Methodology: The study sampled 100 taxpayers from 38,448 at the Jepara Tax Office using the Slovin formula and accidental sampling. Data were collected via questionnaires and analyzed using multiple linear regression in SPSS, assessing e-billing, system quality, and tax penalties.

Findings: Significant influences on taxpayer compliance include the use of e-billing, system quality, and tax penalties; these factors account for 19.3% of the variation, with other factors influencing the remaining 80.7%. A significant effect is indicated by the F-test results, which show a value of 0.001. Limitation: Due to its small sample size (100 respondents) and focus on Jepara taxpayers only, the study may not be able to generalize its findings to other areas or larger populations.

Contribution: This study contributes empirical evidence on how e-billing usage, system quality, and tax penalties significantly affect taxpayer compliance, explaining 19.3% of its variation, offering insights for improving tax administration strategies.

Novelty: This study offers a novel contribution by examining the specific influence of e-billing usage, system quality, and tax sanctions on taxpayer compliance within the context of the Jepara Primary Tax Service Office. While previous studies have explored various factors affecting tax compliance, this research uniquely integrates these three variables, highlighting the role of technology (e-billing) and system quality alongside traditional compliance factors like tax sanctions.