Journal of Governance, Taxation and Auditing

Analysis of Tax Audit Authority from the Perspective of Appeal Disputes in the Tax Court

Benny SETIAWAN, Yadhy CAHYADY, Supriyadi SUPRIYADI, Faisal Ahmad CHOTIB — Tue, 30 Dec 2025 00:00:00 +0700

This study analyzes the authority of tax audits conducted by the Directorate General of Taxes (DGT) from the perspective of appeal disputes in the Indonesian Tax Court. Within Indonesia’s self-assessment tax system, tax audits function as a primary instrument for ensuring taxpayer compliance and form the basis for the issuance of Tax Assessment Letters (Surat Ketetapan Pajak/SKP). However, audit results and the resulting SKP often give rise to disputes when taxpayers question both the material correctness and the procedural legitimacy of the audit process. This research employs normative legal research with a descriptive-analytical approach, examining statutory regulations, implementing rules, and relevant Tax Court decisions concerning disputes over audit authority and procedures. The findings indicate that tax audit authority is attributive and explicitly regulated under the General Provisions and Tax Procedures Law (UU KUP) and its implementing regulations. In appeal proceedings, the Tax Court assesses both formal aspects—such as compliance with audit procedures and authority—and material aspects relating to the accuracy of tax calculations. Procedural violations do not automatically invalidate a Tax Assessment Letter; instead, judges evaluate the seriousness of the violation and its impact on taxpayer rights and material truth. The study concludes that the Tax Court plays a crucial role in controlling the use of audit authority while balancing legal certainty, protection of taxpayer rights, and the state’s fiscal interests.

Examining predatory pricing strategies: moderation of entrepreneurial orientation and intellectual capital on the impact of competitive pressures

Ni Made Rai JUNIARIANI, I Putu Mega Juli Semara PUTRA — Tue, 30 Dec 2025 00:00:00 +0700

The study aims to analyze the moderation of intellectual capital and entrepreneurial orientation on the effect of the competitive pressure towards predatory pricing in e-commerce. The study applies quantitative research involving the assistance of the SmartPLS application to review the hypothesis of the study. The data is collected by using a questionnaire survey distributed to the businessman who promote their products in E-commerce and random sampling is applied in the study for the data collection. The research results have successfully proven the proposed hypothesis and support the applied theory in the study. On the other hand, intellectual capital has a negative moderating effect. Therefore, the greater the entrepreneur's intellectual capital, the lower their willingness to utilize predatory pricing strategies to overcome competitive pressure. However, entrepreneurial orientation is unable to moderate the effect of competitive pressure on predatory pricing. This research is for business actors, especially those who market their products through online shops, to be better prepared and maximize themselves in running their business because in this dynamic environment, competitive pressure greatly affects business continuity. The results of the study completing related literature on competitive pressure, especially the ones occur among the businessman in e-commerce industry.

Supervision and Law Enforcement to Increase Taxpayer Compliance at the Pondok Aren Tax Office

Tue, 30 Dec 2025 00:00:00 +0700

This study analyzes the influence of supervision and law enforcement on improving taxpayer compliance at the Pondok Aren Tax Office (KPP Pratama), focusing on post-audit Taxable Entrepreneurs (PKP). The approach used was qualitative with descriptive-analytical methods, through data collection from interviews (tax officers and taxpayers) and surveys to identify factors influencing post-audit compliance. The study results indicate that stricter supervision and effective law enforcement have the potential to improve compliance, but their implementation still faces significant obstacles such as limited resources, weak taxpayer understanding of tax obligations, and the effectiveness of sanctions that have not yet provided an adequate deterrent effect. The findings also emphasize the importance of more intensive education and outreach for new PKPs and the need to improve internal coordination (for example, between the supervisory and audit functions) to ensure more targeted post-audit follow-up. Key recommendations include strengthening technology-based supervision systems, improving tax counseling, and stricter law enforcement, including the option of freezing electronic certificates to suppress repeated violations and encourage ongoing compliance.

Improving Taxpayer Compliance Through Assistance in Submitting Annual Income Tax Returns for the 2024 Tax Year and Education on the Coretax Application for Government Agencies

M. Ridhwan GALELA, Supriyadi SUPRIYADI, Budiasih WIDIASTUTI — Tue, 30 Dec 2025 00:00:00 +0700

Compliance with Annual Tax Return (SPT) reporting remains a challenge in Indonesia's self-assessment system, primarily due to limited taxpayer understanding and adaptation to updates to the tax administration system, including the implementation of Coretax. The Community Service Program through the 2025 Tax Volunteer Program at the Pondok Aren Tax Office (KPP Pratama) is designed to improve compliance with Annual Income Tax Return (SPT) reporting for the 2024 Tax Year while providing education on the use of the Coretax application for government agency taxpayers. The program is implemented through stages of volunteer recruitment, capability mapping and training, assistance in filling out and reporting SPTs via e-Filing, assistance for taxpayers on the DSPT list, Coretax education for treasurers/agencies, and publication of tax education through social media. The implementation results show the collection of 99 student volunteers and 59 lecturer volunteers divided into 20 teams, with SPT assistance carried out offline in the period from the end of February to March 2025. Coretax education for government agencies also helps overcome feature constraints and understanding the reporting process in the new system. Overall, this program contributes to improving tax return reporting assistance services and strengthening tax literacy, and is worthy of continuation as ongoing support for Coretax adaptation.

The Effect of Board Size, Audit Committee, Ownership Structure, Independent Commissioners, Leverage, and Firm Size on Financial Distress

Adinda Nurul Oktavia PRAYITNO, Mahroji MAHROJI — Tue, 30 Dec 2025 00:00:00 +0700

The post-pandemic period represents an economic recovery phase during which many companies face financial pressure due to declining revenues and high debt burdens. This condition is particularly critical in the infrastructure sector, which requires financial stability to sustain long-term operations. This study aims to analyze the effect of corporate governance and ownership structure on financial distress in the infrastructure sector. The data were obtained from companies listed on the Indonesia Stock Exchange (IDX) for the 2021–2024 period using a quantitative approach with purposive sampling. Data analysis was conducted using multiple linear regression. The results indicate that board size and managerial ownership have a significant negative effect on financial distress. These findings support agency theory, which posits that effective internal supervision and managerial ownership can reduce agency conflicts and enhance financial efficiency. Meanwhile, audit committee meeting frequency, independent commissioners, institutional ownership, leverage (DER), and firm size show no significant effect. The study highlights the importance of strengthening corporate governance structures and managerial ownership roles in maintaining financial stability. Future research is recommended to expand the scope and incorporate external factors for a more comprehensive understanding.

Pengaruh Firm Size, Liquidity Ratio Dan Leverage Terhadap Profitabilitas Sektor Keuangan Di Indonesia Periode 2024

Sheila Rizqya LISTY, IMRONUDIN — Tue, 30 Dec 2025 00:00:00 +0700

Sektor keuangan merupakan salah satu fondasi utama yang menopang stabilitas dan pertumbuhan ekonomi Indonesia. Peran sektor ini semakin penting seiring meningkatnya kompleksitas aktivitas bisnis dan kebutuhan pendanaan yang fleksibel. Profitabilitas menjadi indikator utama dalam menilai kesehatan dan kinerja perusahaan keuangan. Penelitian ini bertujuan untuk menganalisis pengaruh Firm Size, Liquidity Ratio, dan Leverage terhadap profitabilitas perusahaan sektor keuangan di Indonesia pada tahun 2024. Profitabilitas diukur menggunakan Return on Assets (ROA) dan Net Profit Margin (NPM), sebagai ukuran efisiensi penggunaan aset dan efektivitas dalam menghasilkan laba bersih dari pendapatan. Penelitian menggunakan pendekatan kuantitatif dengan data sekunder dari laporan keuangan 97 perusahaan sektor keuangan yang terdaftar di Bursa Efek Indonesia (BEI). Teknik analisis menggunakan regresi linier berganda dengan serangkaian uji asumsi klasik. Hasil penelitian menunjukkan bahwa Firm Size berpengaruh signifikan terhadap ROA, namun tidak terhadap NPM. Liquidity Ratio tidak berpengaruh terhadap kedua indikator profitabilitas. Leverage tidak berpengaruh terhadap ROA, tetapi berpengaruh signifikan terhadap NPM. Secara simultan, ketiga variabel independen berpengaruh signifikan terhadap profitabilitas baik dalam model ROA maupun NPM.

The Role of Assurance in Reducing Greenwashing in Sustainability Reporting: A Literature Review

Dzul FADHILATI, Muthmainnah MUTHMAINNAH — Tue, 30 Dec 2025 00:00:00 +0700

Penelitian ini bertujuan untuk memetakan dan mensintesis literatur akademis terkini mengenai peran external assurance (jaminan eksternal) sebagai mekanisme tata kelola utama dalam mendeteksi dan memitigasi praktik greenwashing pada laporan keberlanjutan. Menggunakan metode Tinjauan Literatur (Literature Review) dengan pendekatan kualitatif deskriptif pada studi periode 2018–2025, penelitian ini menganalisis dinamika pelaporan melalui lensa Agency Theory, Legitimacy Theory, dan Signaling Theory. Analisis difokuskan pada motivasi strategis manajemen dan efektivitas verifikasi pihak ketiga. Hasil sintesis mengungkap adanya dualisme peran assurance. Temuan kritis menyoroti risiko assurance yang bersifat kosmetik, di mana mekanisme ini dieksploitasi untuk tujuan legitimasi simbolis (symbolic assurance) atau praktik pencarian opini (opinion shopping) guna menutupi kinerja lingkungan yang buruk. Studi ini menyimpulkan bahwa kemampuan assurance dalam menekan greenwashing sangat bergantung pada tingkat kedalaman verifikasi (reasonable assurance) dan independensi penyedia jasa. Temuan ini mengimplikasikan perlunya standar regulasi yang lebih ketat untuk memastikan assurance tidak hanya menciptakan "ilusi transparansi," melainkan mendorong akuntabilitas lingkungan yang substantif.

Analysis of Financial Performance of Industrial Sector Companies Through Liquidity, Leverage and Efficiency Ratios

Yudia Setya ANDINI, Imronudin IMRONUDIN — Fri, 02 Jan 2026 00:00:00 +0700

In a highly competitive industrial landscape, maintaining financial strength has become essential for a firm’s long-term viability. Profitability—captured most directly through Return on Assets (ROA)—reflects how effectively a company converts its assets into earnings. This study examines how three key financial indicators shape ROA: the Current Ratio, representing short-term financial resilience; the Debt to Equity Ratio, reflecting the structure and risk profile of corporate financing; and Total Asset Turnover, indicating how efficiently assets are mobilized to generate revenue. By assessing these ratios in industrial companies listed on the Indonesia Stock Exchange during 2021–2024, the research provides a concise overview of how liquidity, leverage, and asset efficiency collectively influence corporate profitability. Each ratio reflects a different aspect of financial health: CR describes the company’s liquidity position, DER indicates its leverage and risk exposure, while TATO captures the degree to which its assets are effectively used to generate sales. The focus on this period is driven by the economic instability associated with the COVID-19 pandemic and its recovery phase, which may have reshaped corporate financial dynamics. Previous studies examining these ratios simultaneously within the industrial sector remain limited. The results of this study are anticipated to contribute to the broader academic discourse on the factors that influence corporate financial performance, while also providing practical guidance for managers and investors who aim to improve a company’s profitability.

The Effect of Digital Technology and Corporate Social Responsibility (CSR) on the Financial Performance of Manufacturing Companies with Financial Flexibility Moderation

Nada An Nur ULA, Imronudin IMRONUDIN — Sun, 04 Jan 2026 00:00:00 +0700

The development of digital technology is now an integral part of modern business strategies and is driving transformation in the manufacturing sector. Companies are increasingly expected to engage in continuous Corporate Social Responsibility (CSR) initiatives as part of maintaining constructive interactions with their stakeholders. This research investigates how digital technology adoption and CSR practices influence financial performance, while also assessing whether financial flexibility moderates these relationships, using a sample of manufacturing firms listed on the Indonesia Stock Exchange (IDX) from 2020 to 2023. The study employs a quantitative associative design with purposive selection, resulting in 125 observed firms. Data were processed using Moderated Regression Analysis (MRA) with Eviews 13. The findings reveal that digital technology does not exert a meaningful or positive contribution to financial outcomes, as its effect is negative and statistically insignificant. In contrast, CSR activities demonstrate a significant positive association with financial performance. Financial flexibility itself is shown to negatively and significantly affect financial performance. Moreover, financial flexibility fails to enhance the influence of digital technology on financial performance but does amplify the impact of CSR. Overall, the evidence indicates that CSR initiatives, when supported by robust financial flexibility, can serve as a strategic asset that elevates organizational performance and strengthens competitive positioning.