THE ROLE OF STRATEGIC MANAGEMENT ACCOUNTING AND TAX AWARENESS IN SHAPING TAX COMPLIANCE: MODERATING EFFECT OF ORGANIZATIONAL PERFORMANCE

Abstract

To analyze the effect of Strategic Management Accounting and Tax Awareness on Tax Compliance, with Organizational Performance as a moderating variable. Based on Stakeholder Theory, Contingency Theory, Theory of Planned Behavior, and Compliance Theory, this study examines the factors that drive tax compliance. The research used a quantitative approach with a survey method through a questionnaire distributed to Micro, Small, and Medium Enterprises (MSMEs) in Banten, West Java, and Jakarta. The sample used was 392 MSMEs, and the data obtained was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the relationship between variables and the moderating role of organizational performance. The results show that Strategic Management Accounting and Tax Awareness significantly positively affect Tax Compliance. However, organizational performance does not moderate the relationship between Strategic Management Accounting and tax compliance but instead weakens it. Research limitations (i) respondents' apprehension when distributing questionnaires due to the many online fraud models. (ii) the complexity of the model with many latent variables, which poses challenges in the interpretation of the results. (iii) the need for further research with a more homogenous sample and more varied measurement methods to strengthen the results of this study. The practical implications of this study include the importance of (i) a more in-depth tax education strategy in the application of tax compliance-oriented strategic management accounting, (ii) increased tax awareness through a better understanding of tax regulations, and (iii) education and application of tax technology/digitalization. The Originality has contributed to the development of tax awareness measurement with 3 new dimensions that support tax compliance.