Evaluation of Tax Information System Through Accurate Online in Supporting TCF

Abstract

Objective – The purpose of this study is to evaluate the effectiveness of Accurate Online's tax information system in supporting VAT compliance based on the six principles of the OECD Tax Control Framework (TCF), namely, established tax strategy, comprehensive implementation, assignment of responsibilities, governance documentation, testing and maintenance, and provision of assurance. Design/Methodology –The method used was a qualitative case study with an evaluative approach. Data were collected through analysis of VAT documentation and in-depth interviews with system users from PT ABC, two comparator companies, and tax and IT consultants. Triangulation techniques were used to increase the validity of the findings. Results –This study evaluates the effectiveness of Accurate Online in supporting the implementation of the Tax Control Framework (TCF) at PT ABC through four IT components: hardware, software, network, and peopleware. The results show that the hardware and peopleware have supported the TCF principles well. The Accurate Online software is able to automate tax reporting, but still faces obstacles in uploading invoices due to unstable network connections. The network is well managed, but limited bandwidth still hinders the smooth operation of the system. Overall, Accurate Online is making a positive contribution to digital tax management, although improvements to the network infrastructure and system integration with the DGT are needed to support more optimal compliance. Research limitations/implications – This study is limited to one main company and two comparators, and focuses only on VAT. The data used is qualitative and does not fully describe the overall technical conditions. The implication is that companies need to increase network capacity, improve user training and strengthen the integration of the Accurate Online system with the DGT to support digital tax compliance. Future research should take a quantitative approach and cover more companies and other tax types. Novelty/Originality – This research provides a comprehensive evaluation approach by applying Tax Control Framework (TCF) principles to cloud-based tax information systems. Its original contribution lies in the in-depth analysis of four IT components-hardware, software, network, and peopleware-and practical recommendations for strengthening digital tax governance amidst the challenges of system integration and reliance on network infrastructure