Tax Digitalization and Transparency: The Role of Core Tax Administration System (CTAS) In Indonesia’s Tax Reform

Digitalization of tax administration is crucial for enhancing revenue collection and fostering economic growth, especially in developing countries. Indonesia's adoption of the Core Tax Administration System (CTAS) marks a significant advancement in its tax digitalization journey. This study explores the impact of CTAS on tax administration efficiency and taxpayer compliance through qualitative analysis, involving in-depth interviews with tax officials, consultants, and information systems experts. CTAS, with its advanced data interoperability and Big Data Analytics, aims to streamline tax administration processes and enhance taxpayer compliance. Despite the potential benefits, challenges such as user adaptation and resistance to digital change remain. A comparative analysis with similar systems in Brazil, China, and Peru demonstrate that effective tax digitalization can enhance tax-to-GDP ratios. While CTAS shows great potential for improving Indonesia's tax administration, its success depends on strategic implementation, comprehensive user education, and continuous refinement. This research provides important insights into the complexities of implementing advanced tax systems in developing economies, emphasizing the crucial balance between technological advancement and user adoption as key factors in successful tax reform.