Taxation and Public Finance

Smart Tax Governance: Empirical Evidence for an Integrated Accounting Legal Reform Model in Egypt

2025-11-27T12:04:59+07:00

This study proposes an original and integrated accounting legal reform model to proactively prevent and resolve tax disputes in Egypt, a framework not previously developed or empirically tested in the national context. It addresses persistent systemic challenges, including ambiguous tax regulations, inconsistent accounting documentation, prolonged dispute resolution processes, and low stakeholder trust. Using a mixed-methods approach, data were collected from surveys of 300 stakeholders tax auditors, certified public accountants, legal experts, and corporate taxpayers supplemented by semi-structured interviews and international benchmarking with advanced tax jurisdictions. Intelligent simulation tools were employed to evaluate alternative legal accounting structures and predict dispute trajectories. The findings show that tax disputes decline significantly when accounting transparency, legal codification, and digital governance are integrated within a unified framework. The proposed model demonstrates strong predictive capacity for identifying high-risk disputes and enabling early intervention. Stakeholder engagement further improves the feasibility and acceptance of the reforms. Policy implications indicate that Egypt’s litigation-oriented tax dispute system can transition toward proactive governance through coordinated legal reforms, standardized accounting practices, and digital intelligence, aligning national tax governance with OECD standards and Egypt Vision 2030.

Financial Drivers of Tax Aggressiveness: The Impact of Deferred Tax Assets, Liquidity, and Capital Intensity

2025-11-27T12:13:44+07:00

This study examines the influence of deferred tax assets, liquidity, capital intensity, and return on assets on tax aggressiveness in coal mining companies listed on the Indonesia Stock Exchange during 2017–2021. Using a quantitative approach, secondary data from corporate financial statements were analyzed through multiple linear regression. The study contributes by highlighting how financial characteristics specific to the extractive sector shape corporate tax behavior. The results show that deferred tax assets do not significantly affect tax aggressiveness, while liquidity, capital intensity, and return on assets have a significant influence. These findings suggest that firms with stronger short-term financial capacity, greater fixed asset investment, and more efficient asset utilization have increased flexibility in managing tax obligations. From a managerial perspective, the study emphasizes the importance of aligning tax planning with liquidity management and investment decisions to achieve fiscal efficiency within regulatory limits. The study also provides policy implications for regulators by underscoring the need for stronger oversight of firms with high liquidity and capital intensity, as these characteristics create greater opportunities for tax aggressiveness. Finally, future research may incorporate corporate governance and ownership structures to further explain variations in tax-aggressive behavior across industries

Reinventing Performance: Digital Transformation and Intellectual Capital in Indonesia’s New Economy Sector

2025-11-27T12:08:39+07:00

This study examines the influence of digitalization and intellectual capital on the financial performance of new economy companies listed on the Indonesia Stock Exchange during 2021–2023. Using a saturated sample and panel data regression analysis, the findings reveal that digitalization does not have a significant effect on financial performance, while intellectual capital shows a strong positive influence on return on assets (ROA). The originality of this research lies in its focus on Indonesia’s new economy sector, which is highly dependent on intangible assets for value creation. By integrating digital transformation concepts with the resource-based view, this study provides empirical evidence that knowledge-based capabilities play a critical role in enhancing firm performance. The results suggest that digital investment alone is insufficient without strong intellectual foundations. Practically, the study highlights the importance of continuous human capital development, efficient organizational processes, and innovation-supporting structures. From a policy perspective, the findings indicate the need for regulatory support, including incentives for intellectual capital development and the integration of ESG principles in digital business practices

Optimizing Income Tax Revenue: The Roles of Taxpayer Compliance, Audit Effectiveness, and Payment Timeliness

2025-11-27T12:12:26+07:00

This study examines the impact of taxpayer compliance, tax audits, and income tax payable both independently and collectively on income tax revenue at the Penjaringan Primary Tax Office in Jakarta. Utilizing a quantitative approach, the analysis employs multiple linear regression, t-tests, and F-tests on data from corporate taxpayers. The results reveal that taxpayer compliance, the effectiveness of tax audits, and the amount of income tax payable each have a positive and significant effect on income tax revenue, with tax audits contributing the most significantly. Together, these variables account for 70.8% of the variation in income tax revenue. The originality of this research lies in its comprehensive exploration of compliance behavior, audit enforcement, and payment realization within a single administrative context, providing empirical evidence from a densely populated urban tax office that has been previously overlooked in the literature. The practical implications underscore the necessity for tax authorities to enhance compliance monitoring systems, strengthen risk-based audit frameworks, and improve the management of tax receivables to elevate the effectiveness of income tax administration and mitigate revenue leakage

How Sustainable Finance Drives Financial Performance: Evidence from KKUB Firms with 2024 Sustainability Ratings

2025-11-27T12:16:16+07:00

This study examines the influence of Sustainable Finance (SF) practices on the financial performance of companies operating in Indonesia’s NDC priority sectors by integrating evidence from 2024 sustainability ratings, global GRI-based benchmarks, and regulatory requirements under POJK 51/2017. The research analyzes how ESG integration, sustainability reporting quality, and adherence to the Indonesian Green Taxonomy shape firms’ operational efficiency and financial outcomes, particularly among companies classified as Sustainable Business Activities (KKUB). The originality of this study lies in its cross-sector comparative approach, which links SF implementation to measurable financial results while incorporating updated regional and global sustainability rating frameworks. Findings show that firms with mature ESG governance achieve stronger cost efficiency, improved risk mitigation, and enhanced access to green financing, leading to better overall financial resilience. The results also highlight the role of transparent sustainability reporting in strengthening corporate accountability, aligning environmental disclosures with emerging tax governance expectations, and reducing compliance risks related to emissions and resource use. These insights confirm that integrating SF and high-quality ESG disclosure contributes to long-term firm value while supporting national low-carbon development objectives. The study provides implications for managers, investors, and regulators in optimizing sustainability-driven financial strategies