Determinants of restaurant tax compliance: The moderating role of technology-based monitoring
Restaurant tax is a crucial source of funding for local government’s development activities. However, there is still very limited research that analyzes restaurant tax compliance in the context of today’s rapidly growing e-commerce. This paper is relevant because the growth of e-commerce-based resta...
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| Language: | English |
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LLC "CPC "Business Perspectives"
2025-06-01
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| Series: | Public and Municipal Finance |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22319/PMF_2025_02_Asmara.pdf |
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| author | Elly Asmara Ngatno Dwi Ratmono Augustin Rina Herawati |
| author_facet | Elly Asmara Ngatno Dwi Ratmono Augustin Rina Herawati |
| author_sort | Elly Asmara |
| collection | DOAJ |
| description | Restaurant tax is a crucial source of funding for local government’s development activities. However, there is still very limited research that analyzes restaurant tax compliance in the context of today’s rapidly growing e-commerce. This paper is relevant because the growth of e-commerce-based restaurants in local governments in Indonesia contrasts with the decrease in tax revenues. This study aims to analyze the determinants of restaurant tax compliance using e-commerce and self-assessment systems as independent variables and technology-based tax monitoring as a moderating variable. The sample consists of 68 payers of restaurant tax in the city of Semarang, Indonesia, who have used e-commerce to transact their business. The testing of the hypotheses was carried out using partial least squares-structural equation modeling (PLS-SEM). The results show that the self-assessment system has a positive significant effect on tax compliance with a path coefficient of 0.31. Technology-based tax monitoring significantly affects tax compliance with a path coefficient of 0.52. Technology-based tax monitoring acts more as the main determinant rather than as a moderating variable. The study stresses the importance of implementing technology-based restaurant tax monitoring for local governments. Local finances, primarily funded by local taxes such as the restaurant tax, are essential for bolstering regional budgets. These funds directly contribute to public services and infrastructure, making restaurant tax compliance vital for local government autonomy and development. |
| format | Article |
| id | doaj-art-5d54faceca36456ca56eafd08991cd82 |
| institution | OA Journals |
| issn | 2222-1867 2222-1875 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Public and Municipal Finance |
| spelling | doaj-art-5d54faceca36456ca56eafd08991cd822025-08-20T02:07:01ZengLLC "CPC "Business Perspectives"Public and Municipal Finance2222-18672222-18752025-06-01142859610.21511/pmf.14(2).2025.0922319Determinants of restaurant tax compliance: The moderating role of technology-based monitoringElly Asmara0Ngatno1Dwi Ratmono2https://orcid.org/0000-0002-0306-5622Augustin Rina Herawati3Master in Management, Doctoral Student, Department of Public Administration, Faculty of Social Science and Political Science, Universitas Diponegoro [University of Diponegoro], IndonesiaDoctor in Business Administration, Professor, Department of Business Administration, Faculty ofмSocial Science and Political Science, Universitas Diponegoro [University of Diponegoro], IndonesiaDoctor in Accounting, Associate Professor, Department of Accounting, Universitas Diponegoro [Diponegoro University], IndonesiaDoctor in Public Administration, Associate Professor, Department of Public Administration, Faculty of Social Science and Political Science, Universitas Diponegoro [University of Diponegoro], IndonesiaRestaurant tax is a crucial source of funding for local government’s development activities. However, there is still very limited research that analyzes restaurant tax compliance in the context of today’s rapidly growing e-commerce. This paper is relevant because the growth of e-commerce-based restaurants in local governments in Indonesia contrasts with the decrease in tax revenues. This study aims to analyze the determinants of restaurant tax compliance using e-commerce and self-assessment systems as independent variables and technology-based tax monitoring as a moderating variable. The sample consists of 68 payers of restaurant tax in the city of Semarang, Indonesia, who have used e-commerce to transact their business. The testing of the hypotheses was carried out using partial least squares-structural equation modeling (PLS-SEM). The results show that the self-assessment system has a positive significant effect on tax compliance with a path coefficient of 0.31. Technology-based tax monitoring significantly affects tax compliance with a path coefficient of 0.52. Technology-based tax monitoring acts more as the main determinant rather than as a moderating variable. The study stresses the importance of implementing technology-based restaurant tax monitoring for local governments. Local finances, primarily funded by local taxes such as the restaurant tax, are essential for bolstering regional budgets. These funds directly contribute to public services and infrastructure, making restaurant tax compliance vital for local government autonomy and development.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22319/PMF_2025_02_Asmara.pdfe-commercerestaurant taxself-assessment systemtax compliancetechnology-based tax monitoring |
| spellingShingle | Elly Asmara Ngatno Dwi Ratmono Augustin Rina Herawati Determinants of restaurant tax compliance: The moderating role of technology-based monitoring Public and Municipal Finance e-commerce restaurant tax self-assessment system tax compliance technology-based tax monitoring |
| title | Determinants of restaurant tax compliance: The moderating role of technology-based monitoring |
| title_full | Determinants of restaurant tax compliance: The moderating role of technology-based monitoring |
| title_fullStr | Determinants of restaurant tax compliance: The moderating role of technology-based monitoring |
| title_full_unstemmed | Determinants of restaurant tax compliance: The moderating role of technology-based monitoring |
| title_short | Determinants of restaurant tax compliance: The moderating role of technology-based monitoring |
| title_sort | determinants of restaurant tax compliance the moderating role of technology based monitoring |
| topic | e-commerce restaurant tax self-assessment system tax compliance technology-based tax monitoring |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22319/PMF_2025_02_Asmara.pdf |
| work_keys_str_mv | AT ellyasmara determinantsofrestauranttaxcompliancethemoderatingroleoftechnologybasedmonitoring AT ngatno determinantsofrestauranttaxcompliancethemoderatingroleoftechnologybasedmonitoring AT dwiratmono determinantsofrestauranttaxcompliancethemoderatingroleoftechnologybasedmonitoring AT augustinrinaherawati determinantsofrestauranttaxcompliancethemoderatingroleoftechnologybasedmonitoring |