Determinants of tax compliance and their impact on a sustainable information society: an investigation of MSMEs

Ariyanto, Dodik; Dewi, Ayu Aryista; Paramadani, Rizky Bagus; Paramadina, Aulia Ayu Article Determinants of tax compliance and their impact on a sustainable information society: an investigation of MSMEs Cogent Business & Management Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Ariyanto, Dodik; Dewi, Ayu Aryista; Paramadani, Rizky Bagus; Paramadina, Aulia Ayu (2024) : Determinants of tax compliance and their impact on a sustainable information society: an investigation of MSMEs, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 11, Iss. 1, pp. 1-17, https://doi.org/10.1080/23311975.2024.2414856 This Version is available at: https://hdl.handle.net/10419/326615 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Cogent Business & Management ISSN: 2331-1975 (Online) Journal homepage: www.tandfonline.com/journals/oabm20 Determinants of tax compliance and their impact on a sustainable information society: an investigation of MSMEs Dodik Ariyanto, Ayu Aryista Dewi, Rizky Bagus Paramadani & Aulia Ayu Paramadina To cite this article: Dodik Ariyanto, Ayu Aryista Dewi, Rizky Bagus Paramadani & Aulia Ayu Paramadina (2024) Determinants of tax compliance and their impact on a sustainable information society: an investigation of MSMEs, Cogent Business & Management, 11:1, 2414856, DOI: 10.1080/23311975.2024.2414856 To link to this article: https://doi.org/10.1080/23311975.2024.2414856 © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group Published online: 16 Oct 2024. Submit your article to this journal Article views: 2899 View related articles View Crossmark data Full Terms & Conditions of access and use can be found at https://www.tandfonline.com/action/journalInformation?journalCode=oabm20 Accounting, corporAte governAnce & Business ethics | reseArch Article Cogent Business & ManageMent 2024, VoL. 11, no. 1, 2414856 Determinants of tax compliance and their impact on a sustainable information society: an investigation of MSMEs Dodik Ariyantoa , Ayu Aryista Dewia, rizky Bagus paramadanib and Aulia Ayu paramadinaa aDepartment of accounting, udayana university, Denpasar, indonesia; bDepartment of informatic engineering, Brawijaya university, Malang, indonesia ABSTRACT the use of information communication technology for tax reporting has an important role in increasing economic growth and people’s quality of life. this research aims to evaluate the success of information systems and trust in the government on usage and user satisfaction, as well as the impact on tax compliance. the success of information systems consists of three variables, namely information, service, and system quality. this research also involves gender, education, and age as moderating variables. subsequently, this study investigates whether tax compliance has an impact on a sustainable information society. this research was conducted on micro, small, and medium business taxpayers in Bali province, indonesia. Data collection was carried out by distributing survey questionnaires, with 128 taxpayers participating in this research. pls-seM was then used to test the hypothesis. this study found that the tax reporting system’s quality has a positive effect on usage and user satisfaction, while trust in the government has no effect. however, this study reveals that gender, education level, and age have no significant effect on the relationship between usage and satisfaction of e-filing users and taxpayer compliance. Furthermore, the results show that usage and user satisfaction have a positive effect on tax compliance, which in turn affects the sustainable information society. this research has implications in terms of the importance of improving the quality of the tax reporting system in indonesia in realizing a sustainable society. 1. Introduction Adoption of information technology (it) is crucial for creating a sustainable information society (sis), which comprises environmental, economic, cultural, social, and political issues (Ziemba, 2018). All societal stakeholders, particularly government units and public administration, can help overcome this problem by utilizing an information system (is) and it to provide public and administrative services or known as e-government (grant & chau, 2005). the use of e-government has been shown to boost transparency, citizens’ trust, and citizens’ perceptions of the performance of public services (grimmelikhuijsen et al., 2013; lee etal., 2011). the government and stakeholders continue to encourage the strengthening of the national economic foundation by setting as one of the priorities the digital transformation agenda for micro, small, and medium enterprises (MsMes) which are the backbone of the indonesian economy. one form of e-government is e-filing, which is used for tax reporting by taxpayers in indonesia. the Directorate general of taxation has created an e-filing system to ease MsMe taxpayers when they carry out tax reporting (veeramootoo et al., 2018). e-filing as a form of e-government can reduce costs for taxpayers and the government (schaupp & carter, 2010) as well as bring net benefits (Delone & Mclean, 2003; putra et al., 2022). the use of e-filing should be appreciated and encouraged because it will increase © 2024 the author(s). Published by informa uK Limited, trading as taylor & Francis group CONTACT Dodik ariyanto [email protected].id Department of accounting, udayana university, Denpasar, indonesia https://doi.org/10.1080/23311975.2024.2414856 this is an open access article distributed under the terms of the Creative Commons attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. the terms on which this article has been published allow the posting of the accepted Manuscript in a repository by the author(s) or with their consent. ARTICLE HISTORY received 21 January 2024 revised 11 september 2024 Accepted 5 october 2024 KEYWORDS e-filing; Delone and Mclean success model; tax compliance; sustainable information society; MsMes SUBJECTS Business, management and accounting; finance; industry and industrial studies 2 D. AriYAnto etAl. awareness and benefit the community as users of e-filing and the government thereby creating tax compliance (santhanamery & ramayah, 2013). utilizing e-filing for data processing is a means of reducing tax risks, in addition to economic risks and tax legal uncertainty (neuman et al., 2019). on the other hand, the popularity and usefulness of e-filing for MsMe taxpayers and the government is feared to be less than optimal (ghobakhloo & tang, 2015; schaupp & carter, 2010). evidence from indonesia has revealed that the amount MsMes contribute to tax revenue remains low. of 64 million MsMe business units in indonesia, only 2.3 million have taxpayer identification numbers, and none of them have paid and reported taxes regularly (hamida & Wijaya, 2022). the low contribution of MsMes to tax revenues in indonesia could have an impact on the failure to create an sis and will result in government guidance and subsidies for MsMes not being on target. in particular, this research investigates the success of e-filing with the information system success model from Delone and Mclean (2003) and has replaced net benefits with taxpayer compliance is Widyari et al. (2021), and its role in realizing a sustainable information society from the point of view of MsMe users in Bali. MsMes in Bali contribute to 61 percent of the nation’s gross domestic product (gDp). therefore, it investigates factors that can influence the success of e-filing adoption in increasing MsMe taxpayer compliance, and its impact on realizing an sis is becoming crucial. there are several things that are the focus and motivation in this study. First, the net benefit variable in the model developed by Delone and Mclean (2003) or individual performance as well as organizational performance (Delone & Mclean, 1992) adapted to the goal of ease of use and the use of e-filing for taxpayers, namely taxpayer compliance (Widyari etal., 2021). second, there is the addition of trust to the e-government variable. research by Azmi and Aziz (2015) and Mahmood et al. (2019) explains that trust is a significant and major challenge for governments in developing countries when implementing e-government projects. users’ trust can positively influence the use of e-filing systems in developing countries (Munyoka & Maharaj, 2019), especially the Balinese people who are communal. third, the model of Delone and Mclean (2003) is developed by adding the moderating variables gender, level of education, and age. the gender moderator variable is included in this research because women in Bali have significant responsibilities in carrying out religious and cultural activities, as well as pursuing their careers (Komalasari etal., 2019). in addition, MsMe businesses are initiated by individuals with a good understanding of business (as a proxy for the level of education) and by young people who enjoy challenges (as a proxy for age). Finally, sustainability concepts and research are developed according to the context, such as social media adoption linked to MsMes’ sustainability (Amoah, egala, etal., 2023), the competitive sustainability of MsMes in tourism social media integration and MsMes’ sustainability opportunities (Bruce etal., 2023), and social marketing and MsMes’ sustainability (patma et al., 2021). this research contributes by highlighting the importance of the implementation of e-filing as a basis for MsMes tax compliance to create a sustainable information society. 2. Literature and hypotheses A sustainable information society (sis) is a new phase of development that has a significant impact on enhancing public information and services provided for all stakeholders and yields benefits in terms of environmental protection (ecological sustainability), economic growth (economic sustainability), socio-cultural development (socio-cultural sustainability), and governance (political sustainability) (Ziemba, 2018). the use of information technology is one of the most important tools for building an sis (Amoah, Bruce, etal., 2023). on the other hand, a study by grunwald (2007) shows that the relationship between technology and sustainability is ambivalent. Although grunwald (2007) argues that technology adoption is considered to be the reason for many sustainability problems, it is also considered to be a direct solution or at least one feature of the solution to sustainability issues. the use of technology can be used to limit environmental pollution and distortion, and thus contribute to an sis. research on the success of technology adoption was begun by Delone and Mclean (1992) and was later updated (Delone & Mclean, 2003). the success of is adoption is categorized into three levels or taxonomies. At the technical level, it is assessed in terms of production and is the construct of system quality. At the semantic level, it is examined in terms of the product and is the construct of information cogent Business & MAnAgeMent 3 quality. At the level of effectiveness or influence, it is analyzed in terms of receipt and power of the recipient. this becomes the constructs of usage, user satisfaction, individual impact, and organizational impact. Delone and Mclean (1992, 2003) present a model that is used to evaluate the success of the information system. the model of Delone and Mclean (1992) is constructed from six latent variables, namely system quality, information quality, user satisfaction, usage, individual impact, and organizational impact. then, in 2003, the Delone and Mclean model was renewed by adding service quality as a latent variable and incorporating the variables of latent individual impact and organizational impact into a net benefit. previous research had evaluated the success of si with the Delone and Mclean model in e-government or e-filing (c. chen, 2010; J. chen et al., 2015; liang & lu, 2013; veeramootoo etal., 2018; rehman etal., 2023). Based on Delone and Mclean (2003), this research adds the construct of service quality and changes the constructs of individual impact and organizational impact to a net benefit. MsMes that are able to capture potential markets in the future will be those that utilize information and communications technology (ict) in their business (Qosasi etal., 2019). in this vein, MsMe taxpayer compliance is expected to build sis so that tax incentives and government guidance for MsMes can be sustainable and on target. the database used is the MsMe taxpayer identification number which is reported by e-filing. e-filing as a tool that utilizes ict can build competitive sustainability practices (Amoah, egala, etal., 2023), MsMe sustainability (Bruce etal., 2023), and sis (Ariyanto etal., 2022; Ziemba et al., 2013). Meanwhile, some citizens have not or do not use online services and e-government applications (schaupp & carter, 2010) this condition is caused by a lack of trust in the transfer of information online (Abu-shanab, 2014). therefore, trust is an important aspect of e-government implementation and will be used as a recommendation from one user to another (Alzahrani et al., 2019) of word of mouth. research by Mellouli etal. (2020) finds that information quality positively affects the usage of e-filing. the results of research by tam and oliveira (2017), shim and Jo (2020), and tam et al. (2020) show that information quality has a significant relationship with usage and user satisfaction. in addition, there is also an indirect effect of information quality on net benefits mediated through user satisfaction. similar results have also been found by chumsombat (2014), in MsMes (prasojo & pratomo, 2015), in the rail ticket system (rukmiyati & Budiartha, 2015) in the use of accounting software, as well as Mas’ud & umar (2019) who found that the information quality has a positive effect on user satisfaction in the service sector. Alkraiji (2021) proves that perceptions of information quality affect the usage of e-government in saudi Arabia. this is in contrast to research by veeramootoo et al. (2018) who show that the quality of information has no effect on continuance intention and user satisfaction with the e-filing system in Mauritius. therefore, if the output of the e-filing system is complete, relevant, accurate, on time, and provides good information, user trust and satisfaction will be achieved. this condition will encourage taxpayers to use the e-filing system. then, the intensity of use will increase. h1: information quality has a positive effect on the usage of e-filing systems. h2: information quality has a positive effect on user satisfaction of the e-filing system. system quality has a significant impact on system usage and user satisfaction (Delone & Mclean, 2003; Delone & Mclean, 1992). the better the system quality in processing data into useful information, the more people will use the system since it is felt that it makes completing tasks easier. Because the e-filing system quality is easy, fast, reliable, and flexible, it will make people use it repeatedly in the future (tjen et al., 2019). the system quality depends on the needs of each user. research by c. chen (2010) measures the system quality using three sub-dimensions, namely access, interactivity, and ease of use. the study by veeramootoo etal. (2018) finds a positive relationship between system quality with the use of and user satisfaction with the online tax filing system in Mauritius as well. this is in line with the research by s. K. r. Zaidi, henderson, etal. (2017) and F. Zaidi, Azlina, etal. (2017) that states that the system quality constructed with functionality and responsiveness is a determinant of e-filing user satisfaction in india and Malaysia. According to chiu et al. (2016) system quality has a positive effect on user satisfaction. this means that the appearance of search results on mobile devices, 4 D. AriYAnto etAl. performance, and smooth operation have a positive effect on user satisfaction. therefore, improving the system quality is needed to increase user satisfaction. A good system will affect the usage of and user satisfaction with the e-filing system. A good system will make users feel comfortable using it, making it possible for them to use it frequently, and they will be satisfied with the system when submitting tax returns. h3: system quality has a positive effect on the usage of the e-filing system. h4: system quality has a positive effect on user satisfaction with the e-filing system. research by tam et al. (2020) shows that the use of e-commerce is influenced by the service quality in the european union. shahzad et al. (2021) examined the impact of coviD-19 on higher education e-learning in Malaysia with the full model and distinguished the male and female student models. the research states that the service quality of e-learning services has an effect on the usage of and user satisfaction with e-learning portals. it can be said that the better the service quality, the higher the intensity of the usage of the e-learning system among students. it is strengthened by the research of rehman etal. (2023) which explains that there is a positive influence of service quality on perceived use, use of e-government, and user satisfaction. in contrast, research by veeramootoo etal. (2018) shows that continuance usage intention is not affected by service quality. research by tam and oliveira (2017) confirms that service quality has a direct effect on customer satisfaction by considering a more comprehensive service model in the context of m-banking. however, service quality has no effect on usage; shim and Jo (2020) state that service quality has a significant relationship with reuse and user satisfaction, and net benefits can be achieved indirectly through user satisfaction and reuse. this is supported by the result that shows that service quality is a determinant of e-government and e-filing user satisfaction. therefore, if the quality of service provided by the system provider for the use of e-filing is getting better, the taxpayer will feel happier and more satisfied with the use of the system. therefore, they intend to use the system continuously. h5: service quality has a positive effect on the usage of the e-filing system. h6: service quality has a positive effect on user satisfaction with the e-filing system the theory of belief developed by Mayer etal. (1995) elaborates that trust is motivated by the three most important factors, namely ability, benevolence, and integrity. in an information system, users must trust not only the website but also the organization and infrastructure behind it (Beldad et al., 2010). trust is a significant challenge for governments in developing countries when implementing e-government projects. trust in e-government refers to individual beliefs and expectations of e-government. several studies have investigated the effect of trust in e-government on system usage. According to research by Fakhoury and Aubert (2015), trust in the internet and government have a significant effect on the usage of e-government. research by Franque et al. (2022) which shows that trust affects the use and users’ continued intention of mobile payment services. According to a study by contreras and perez (2018), there is a positive relationship between the level of trust in e-government in european countries. it can be said that the higher the level of trust in e-government, the higher the use of e-government services and vice versa. in contrast, carter etal. (2011); and santa etal. (2019) find trust has no effect on the use and satisfaction of e-government users. trust plays a crucial role in the implementation and adoption of e-government because, with trust, citizens may feel comfortable interacting with the government digitally. this lack of trust can hinder the optimal realization of e-government benefits and lead to resistance within the community. research by Azmi and Aziz (2015) and Mahmood et al. (2019) explains that trust is a significant and major challenge for governments in developing countries when implementing e-government projects. people in developing countries prefer conventional or face-to-face methods to fulfill their tax obligations, compared to e-government services, such as e-filing. trust in the government can increase trust in e-filing websites (tjen et al., 2019). A study by Khan et al. (2021) shows a significant relationship between e-government trust in perceived usefulness and intention to participate. trust in e-government will increase the usage of e-government services (Munyoka & Maharaj, 2019) continuously, so user satisfaction will be reached cogent Business & MAnAgeMent 5 (Alzahrani etal., 2019). citizen satisfaction with and use of e-filing are influenced by trust in using e-filing to report MsMes’ taxes. therefore, user trust can positively influence the use of e-filing systems in developing countries, especially among the Balinese people who have a strong sense of community. h7: trust in e-government has a positive effect on the usage of the e-filing system. h8: trust in e-government has a positive effect on user satisfaction with the e-filing system. research on taxpayer satisfaction with online tax e-filing has been conducted (tjen et al., 2019), on how user satisfaction impacts individual and organizational performance (Delone & Mclean, 1992), and on net benefit (tam & oliveira, 2017). research by Widyari etal. (2021) demonstrates that taxpayers who are satisfied with e-filing will feel encouraged to comply with e-filing. research by pramanita et al. (2020) also changes the net benefits variable to a more specific variable related to taxpayer compliance using e-filing. it has been discovered that using the e-filing system has a positive effect on tax compliance. Furthermore, research by Masunga etal. (2021) shows that the intention to use and satisfaction of users of the electronic tax system has a positive effect on taxpayer compliance behavior in tanzania. research by taing and chang (2021) examined the determinants of taxpayer compliance by focusing on the theory of planned behavior (tpB). the results show that perceived behavior control, which is proxied by tax complexity, affects intentional non-compliance. Meanwhile, the study by found that the usage of and user satisfaction with e-filing affected taxpayer compliance. thus, higher usage and user satisfaction because easy reporting through e-filing can increase tax compliance. h9: the usage of the e-filing system has a positive effect on taxpayer compliance. h10: user satisfaction with the e-filing system has a positive effect on taxpayer compliance. some researchers have examined gender roles because it can be said that women and men behave differently in all conditions, including in terms of individual tax compliance (Bruner et al., 2017). research by Ariyanto et al. (2020) shows that sex differences result in differences in tax evasion. Women tend to behave more submissively than men. generally, women maintain higher ethical standards, whereas men tend to be more daring in tax evasion. research by Bruner etal. (2017) obtained evidence that women are more compliant when reporting their income for tax purposes in european countries. in contrast, Kirchler and Maciejovsky (2001) state that men are more obedient in fulfilling their tax obligations. taing and chang (2021) use some demographic variables as control variables (age, education, gender, and occupation). Meanwhile, v. venkatesh etal. (2003) and v. venkatesh etal. (2012) also use demographic variables (age, education, and gender) as moderating variables. it can be said that female taxpayers tend to be obedient and consciencious in tax compliance or have feelings of guilt if they are not compliant. the moderator variable is essential in this context because MsMes are typically initiated by men who have a good understanding of business (as a proxy for the level of education) and young individuals who enjoy challenges. Besides that, taxpayer compliance is a psychological contract between the taxpayer and the government. therefore, it is important to examine the effect of gender as a moderating variable on the use of information systems and is based on the utAut1 and utAut2 theories. h11, 12, 13: gender, level of education, and age moderate the effect of usage of the e-filing system on tax compliance. h14,15,16: gender, level of education, and age moderate the effect of user satisfaction with e-filing on tax compliance. there is research on ict adoption with a sustainable information society (Ziemba, 2019) and the successful adoption of information systems and it with a sustainable information society (Ariyanto et al., 2022; patma et al., 2021). research conducted by susanto and Aljoza (2015) states that e-government could increase the efficiency of public administration, the affordability of broader government services, the accountability and transparency of public services, and public trust in government. if it is related to MsMe taxpayer compliance using e-filing, MsMes’ business information can be continuously registered 6 D. AriYAnto etAl. and properly integrated. Finally, coaching, providing financial incentives, and tax incentives for MsMes are right on target, and a sis is formed. h17: tax compliance influences the sustainable information society Based on the literature review, the research model of this study was put together, as shown in Figure 1. 3. Research method this study was conducted through an online questionnaire using google Forms and distributed via MsMe associations in the indonesian province of Bali. this study, informed consent was obtained from all participants before their involvement. the consent process involved clearly explaining the purpose of the study, procedures, potential risks, and benefits. participants were given the choice to either agree or decline participation. the written consent process was thoroughly documented, and participants were assured of their right to withdraw from the study at any time without any repercussions. the population of this study comprises MsMe taxpayers in the province. MsMes have become the dominant sector in Bali and the growth of MsMes during the crisis caused by the coviD-19 pandemic has demonstrated the ability of the province’s MsMes to innovate in order to sustain their businesses in the long term. the classification of MsMe taxpayers is businesses with a turnover of under iDr 4.8 billion a year, as well as active and registered at the primary tax service office (ptso). Based on government regulations (pp 23/2018 and pp 55/2022), MsMes in indonesia are only subject to a final income tax of 0.5% according to their cumulative turnover. if MsMes are individual taxpayers with a year’s cumulative turnover of less than iDr 500 million, income tax will not be imposed. this study has been certified regarding its efforts to protect the human rights and welfare of its research subjects by the ethics committee of udayana university. in conducting the survey, the authors conveyed the objectives of this research and guaranteed the confidentiality of the respondents’ identities. this is done so that respondents are enthusiastic about sharing information and ideas comfortably and free of stress (cooper & schindler, 2014). the sampling technique used is proportional sampling or balanced sampling, namely taking representatives of MsMes from each regency and city (hair et al., 2019). the determination of a representative sample is based on the minimum sample criteria for survey research using partial least squares structural equation modeling (pls-seM) established by Barclay et al. (1995), known as the ‘10-times rule’. Because this study has eight latent variables, the minimum sample size obtained should therefore be 80. Additionally, using the g*power application based on the F-test, a minimum sample size of 107 is Figure 1. Research model. cogent Business & MAnAgeMent 7 obtained. the sample size tested with the appropriate structural equation modeling (seM) is between 100-200 (hair et al., 2019) so there were 441 copies of the questionnaire distributed for this study because the average response rate is 20%. the sampling technique used is proportional sampling or balanced sampling, namely taking representatives of MsMes from each regency and city (hair et al., 2019). there were 441 respondents to this study from various regencies. the details of the total population are presented in table 1. in this study, the research data were collected through questionnaires distributed in person and online via google Forms. All variables were measured by using a 5-point likert scale where 1 = strongly disagree, 2 = disagree, 3 = doubt, 4 = agree, and 5 = strongly agree. then, the hypothesis was tested with pls-seM (hair, 2019). For the analysis using pls, three stages of testing can be carried out; they are outer model analysis, inner analysis, and hypothesis testing. the exogenous variables in this study consist of information Quality (iQ) (Delone & Mclean, 2003; J. chen et al., 2015; Antonopoulou & Kotsilieris, 2019; Mellouli et al., 2020), system Quality (syQ) (Antonopoulou & Kotsilieris, 2019; Delone & Mclean, 2003; teo, 2008), service Quality (serQ) (Antonopoulou & Kotsilieris, 2019; Delone & Mclean, 2003; Mellouli et al., 2020), and trust in the government (tieg) (teo, 2008; J. chen et al., 2015). Meanwhile, endogenous variables are variables that are affected or become a result because of the independent variables (hair et al., 2019); they are usage (u) (Delone & Mclean, 2003; Mellouli etal., 2020), user satisfaction (us) (Delone & Mclean, 2003; Mellouli etal., 2020), tax compliance (tc) (Do et al., 2022; Kochanova etal., 2020; setyoko etal., 2023; taing & chang, 2021), and sustainable information society (sis) (Ariyanto etal., 2022; Mellouli et al., 2020; Ziemba, 2019). 4. Result the research data were collected through questionnaires distributed in person and online via google Forms. Before distribution to the MsMe respondents, the questionnaire was tested for validity and reliability (hair etal., 2019) on 35 master of accounting students at udayana university in Bali. the students were chosen because they already have experience and understanding of e-filling and tax reporting. preliminary test results show that all statements are declared valid and reliable. in this study, 441 questionnaires were distributed, but only 154 were returned. After screening, 26 questionnaires were not filled out completely, leaving only 128 questionnaires that could be used. Questionnaire distribution and return rates that can be processed in this study are presented in table 2. respondent characteristics which include gender, level of education, age, type of MsMe, MsMe ownership, business size, and age of business are presented in table 3. Figure 1 and table 4 show that the loading factor values for all reflective elements are more than 0.60 (chin etal., 2013) for new model and using outer loading values of more than 0.7 if the research model has been frequently used (hair et al., 2019). it shows that all latent variable statements are said to be valid. however, there are only four statements regarding the sustainable information society (sis) latent variables, namely (sis-4,5,7 and 9), whose loading factor values are more than 0.7, (chin et al., 2013) so the others were removed from the model. latent variable information quality (iQ) has one statement removed (iQ-4), latent variable trust in government (tie-g) has two statement removed (tie-g2 and tie-3) and latent variable user satisfaction (us-4) has one statement removed. For more details, see Figure 2 and table 4. Table 1. number of MsMes in Bali province. no Regency and city number of MsMes MsMe taxpayers 1. Badung Regency 40,989 30,194 2. Bangli Regency 44,693 5,121 3. Buleleng Regency 57,216 10,872 4. Denpasar City 32,226 27,481 5. gianyar Regency 75,620 15,046 6. Jembrana Regency 66,537 4,237 7. Karangasem Regency 40,614 217 8. Klungkung Regency 36,072 280 9tabanan Regency 47,160 5,119 total 441,127 98,567 Source: office of Cooperatives and MsMes in Bali Province, 2022 https://diskopukm.baliprov.go.id/data-dan-informasi/data-umkm/. 14 D. AriYAnto etAl. Funding this research was funded by the research and community service unit (lppM) of udayana university, Bali, indonesia under the scheme of udayana excellent research grant [grant number: B/78.695/un14.4.A/pt.01.03/2022]. About the authors Dodik Ariyanto is a lecturer in Accounting at the Faculty of economics and Business, udayana university, Bali, indonesia. his research interests include the impact of information systems on business processes related to accounting, both at the organizational and corporate levels. Additionally, he investigates changes in individual behavior before and after the implementation of information systems, as well as the effects of these systems on the performance and adaptation of individuals within organizations or companies. Ayu Aryista Dewi is a lecturer of Accounting at the Faculty of economics and Business, udayana university, Bali, indonesia. her research interests include corporate social responsibility, corporate governance, sustainability reporting and corporate sustainability performance. Rizky Bagus Paramadani is a computer science student at the Faculty of computer science, universitas Brawijaya, Malang, indonesia. his research interests cover various topics, including information systems, improving application performance in terms of accuracy and efficiency, as well as analyzing the impact of applications on users, both at the individual and organizational levels. Aulia Ayu Paramadina is an undergraduate student studying Accounting at the Faculty of economics and Business, udayana university, Bali, indonesia. she is interested in researching the impact of information systems on organizations or companies. Additionally, she aims to explore how the integration of accounting information systems can enhance decision-making and improve transparency in financial reporting. ORCID Dodik Ariyanto http://orcid.org/0000-0002-2022-850X rizky Bagus paramadani http://orcid.org/0009-0003-8254-2793 Data availability statement the data that support the findings of this study are available from the corresponding author upon reasonable request. References Abu-shanab, e. (2014). Antecedents of trust in e-government services: An empirical test in Jordan. Transforming Government: People, Process and Policy, 8(4), 480–499. https://doi.org/10.1108/tg-08-2013-0027 Alkraiji, A. i. (2021). An examination of citizen satisfaction with mandatory e-government services: comparison of two information systems success models. Transforming Government: People, Process and Policy, 15(1), 36–58. https://doi. org/10.1108/tg-01-2020-0015 Al-okaily, A., Al-okaily, M., Ai ping, t., Al-Mawali, h., & Zaidan, h. (2021). An empirical investigation of enterprise system user satisfaction antecedents in Jordanian commercial banks. Cogent Business & Management, 8(1), 1918847. https://doi.org/10.1080/23311975.2021.1918847 Alzahrani, A. i., Mahmud, i., ramayah, t., Alfarraj, o., & Alalwan, n. (2019). Modelling digital library success using the Delone and Mclean information system success model. Journal of Librarianship and Information Science, 51(2), 291–306. https://doi.org/10.1177/0961000617726123 Amoah, J., Bruce, e., shurong, Z., egala, s. B., & Kwarteng, K. (2023). social media adoption in sMes sustainability: evidence from an emerging economy. Cogent Business & Management, 10(1), 2183573. https://doi.org/10.1080/233 11975.2023.2183573 Amoah, J., egala, s. B., Keelson, s., Bruce, e., Dziwornu, r., & Duah, F. A. (2023). Driving factors to competitive sustainability of sMes’ in the tourism sector: An introspective analysis. Cogent Business & Management, 10(1), 2163796. https://doi.org/10.1080/23311975.2022.2163796 Antonopoulou, M., & Kotsilieris, t. (2019). A literature review of user satisfaction models towards information system success. International Journal of E-Services and Mobile Applications, 11(2), 71–87. https://doi.org/10.4018/ iJesMA.2019040105 Ariyanto, D., Andayani, g. W., & putri, i. g. A. p. (2020). influence of justice, culture and love of money towards ethical perception on tax evasion with gender as moderating variable. Journal of Money Laundering Control, 23(1), 245–266. https://doi.org/10.1108/JMlc-06-2019-0047 cogent Business & MAnAgeMent 15 Ariyanto, D., Dewi, A. A., hasibuan, h. t., & paramadani, r. B. (2022). the success of information systems and sustainable information society: Measuring the implementation of a village financial system. Sustainability, 14(7), 3851. https://doi.org/10.3390/su14073851 Azmi, A. c., & Aziz, n. F. (2015). trust, justice and the continued use of e-filing, electronic. Electronic Government, an International Journal, 11(3), 207–222. https://doi.org/10.1504/eg.2015.070132 Barclay, D., thompson, r., & higgins, c. (1995). the partial least squares (pls) approach to causal modeling: personal computer use as an illustration. Technology Studies, 2, 285–309. Beldad, A., De Jong, M., & steehouder, M. (2010). how shall i trust the faceless and the intangible? A literature review on the antecedents of online trust. Computers in Human Behavior, 26(5), 857–869. https://doi.org/10.1016/j. chb.2010.03.013 Bruce, e., Keelson, s., Amoah, J., & Bankuoru egala, s. (2023). social media integration: An opportunity for sMes sustainability. Cogent Business & Management, 10(1), 2173859. https://doi.org/10.1080/23311975.2023.2173859 Bruner, D. M., D’Attoma, J., & steinmo, s. (2017). the role of gender in the provision of public goods through tax compliance. Journal of Behavioral and Experimental Economics, 71, 45–55. https://doi.org/10.1016/j. socec.2017.09.001 carter, l., christian shaupp, l., hobbs, J., & campbell, r. (2011). the role of security and trust in the adoption of online tax filing. Transforming Government: People, Process and Policy, 5(4), 303–318. https://doi. org/10.1108/17506161111173568 chen, c. (2010). impact of Quality antecedents on taxpayer satisfaction with online tax-filing systems-An empirical study. Information & Management, 47(5–6), 308–315. https://doi.org/10.1016/j.im.2010.06.005 chen, J., Jubilado, r. J. M., capistrano, e. p. s., & Yen, D. c. (2015). Factors affecting online tax filing—An application of the is success Model and trust theory. Computers in Human Behavior, 43, 251–262. https://doi.org/10.1016/j. chb.2014.11.017 chen, s., chen, X., cheng, Q., & shevlin, t. (2010). Are family firms more tax aggressive than non-family firms? Journal of Financial Economics, 95(1), 41–61. https://doi.org/10.1016/j.jfineco.2009.02.003 chin, W. W., thatcher, J. B., Wright, r. t., & steel, D. (2013). controlling for common method variance in pls analysis: the measured latent marker variable approach. in h. Abdi, W. W. chin, v. esposito vinzi, g. russolillo, & l. trinchera (eds.), New perspectives in partial least squares and related methods (pp. 231–239). springer. chiu, p., chao, i. c., Kao, c. c., pu, Y. h., & huang, Y. M. (2016). implementation and evaluation of mobile e-books in a cloud bookcase using the information system success model. Library Hi Tech, 34(2), 207–223. https://doi. org/10.1108/lht-12-2015-0113 chumsombat, n. (2014). Factors influencing user satisfaction of e-tax filing: the study of small and medium enterprises (sMes). in 2014 IEEE 11th International Conference on e-Business Engineering (pp. 68–73). ieee. https://doi. org/10.1109/iceBe.2014.23 contreras, l., & perez, J. (2018). importance of the use of the internet of things and its implications in the manufacturing industry. European Scientific Journal, ESJ, 14(10), 378–378. https://doi.org/10.19044/esj.2018.v14n10p378 cooper, D. r., & schindler, p. s. (2014). Business research methods (12th ed., p. 723). Mcgraw-hill’s primis online Assets library. Delone, W. h., & Mclean, e. r. (1992). information systems success the quest for the dependent variable. Information Systems Research, 3(1), 60–95. https://doi.org/10.1287/isre.3.1.60 Delone, W. h., & Mclean, e. r. (2003). the Delone and Mclean model of information systems success: A ten-year update. J. of Management Information Systems, 19, 9–30. https://doi.org/10.1080/07421222.2003.11045748 Do, h. t. h., Mac, Y. t. h., tran, h. t. v., & nguyen, t. t. l. (2022). the impact of attitude towards an e-tax system on tax compliance of vietnamese enterprises: Adoption of an e-tax system as a mediator. Journal of Entrepreneurship, Management and Innovation, 18(1), 35–64. https://doi.org/10.7341/20221812 Fakhoury, r., & Aubert, B. (2015). citizenship, trust, and behavioural intentions to use public e-services: the case of lebanon. International Journal of Information Management, 35(3), 346–351. https://doi.org/10.1016/j.ijinfomgt.2015.02.002 Fornell, c., & larcker, D. F. (1981). evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312 Franque, F. B., oliveira, t., & tam, c. (2022). continuance intention of mobile payment: ttF model with trust in an African context. Information Systems Frontiers, 25(2), 775–793. https://doi.org/10.1007/s10796-022-10263-8 ghobakhloo, M., & tang, s. h. (2015). information system success among manufacturing sMes: case of developing countries. Information Technology for Development, 21(4), 573–600. https://doi.org/10.1080/02681102.2014.996201 grant, g., & chau, D. (2005). Developing a generic framework for e-government. Journal of Global Information Management, 13(1), 1–30. https://doi.org/10.4018/jgim.2005010101 grimmelikhuijsen, s., porumbescu, g., hong, B., & im, t. (2013). the effect of transparency on trust in government: A cross-national comparative experiment. Public Administration Review, 73(4), 575–586. https://doi.org/10.1111/ puar.12047.the grunwald, A. (2007). Working towards sustainable development in the face of uncertainty and incomplete knowledge. Journal of Environmental Policy & Planning, 9(3–4), 245–262. https://doi.org/10.1080/15239080701622774 hair, J. F. (2019). Multivariate data analysis (8th ed.). cengage. 16 D. AriYAnto etAl. hair, J. F., Babin, B. J., Black, W. c., & Anderson, r. e. (2019). Multivariate data analysis. cengage. https://books.google. co.id/books?id=0r9ZsweAcAAJ hamida, Y. A., & Wijaya, s. (2022). Kepatuhan perpajakan uMKM dengan optimalisasi Data online system (studi Di Yogyakarta). JURNAL PAJAK Indonesia (Indonesian Tax Review), 6(2), 327–341. https://doi.org/10.31092/jpi.v6i2.1883 henseler, J., ringle, c. M., & sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/ s11747-014-0403-8 Khan, s., umer, r., umer, s., & naqvi, s. (2021). Antecedents of trust in using social media for e-government services: An empirical study in pakistan. Technology in Society, 64, 101400. https://doi.org/10.1016/j.techsoc.2020.101400 Kirchler, e., & Maciejovsky, B. (2001). tax compliance within the context of gain and loss situations, expected and current asset position, and profession. (Journal of Economic Psychology, 22(2), 173–194. www.elsevier.com/locate/ joep https://doi.org/10.1016/s0167-4870(01)00028-9 Kochanova, A., hasnain, Z., & larson, B. (2020). Does e-government improve government capacity? evidence from tax compliance costs, tax revenue, and public procurement competitiveness. The World Bank Economic Review, 34(1), 101–120. https://doi.org/10.1093/wber/lhx024 Komalasari, Y., Wirajaya, i. g. A., & ratna sari, M. M. (2019). Akuntabilitas Akuntan perempuan-Karir Bali: sebuah studi Fenomenologi. Jurnal Ilmiah Akuntansi dan Bisnis, 14(1), 70–85. https://doi.org/10.24843/JiAB.2019.v14.i01.p07 lee, J., Kim, h. J., & Ahn, M. J. (2011). the willingness of e-government service adoption by business users: the role of offline service quality and trust in technology. Government Information Quarterly, 28(2), 222–230. https://doi. org/10.1016/j.giq.2010.07.007 liang, s. W., & lu, h. p. (2013). Adoption of e-government services: An empirical study of the online tax filing system in taiwan. Online Information Review, 37(3), 424–442. https://doi.org/10.1108/oir-01-2012-0004 Mahmood, M., Weerakkody, v., & chen, W. (2019). the influence of transformed government on citizen trust: insights from Bahrain. Information Technology for Development, 25(2), 275–303. https://doi.org/10.1080/02681102.2018.1451 980 Mas’ud, A., & umar, M. A. (2019). structural effects of trust in e-filing software on e-filing acceptance in services sector. International Journal of Enterprise Information Systems, 15(2), 76–94. https://doi.org/10.4018/iJeis.2019040105 Masunga, F. J., Jeremia Mapesa, h., Mwakibete, A. n., Derefa, M. J., Myava, J. e., simon Kiria, J., Masunga, F. J., Mapesa, h. J., & Derefa, A. n. (2021). the role of mediating effects of user satisfaction and behavioral intention on the influence of the electronic tax system on tax compliance behavior: An application of bootstrapping technique. TIJAB (The International Journal of Applied Business), 5(2), 137–154. https://doi.org/10.20473/tijab.v5.i2.2021.29229 Mayer, r. c., Davis, J. h., & schoorman, F. D. (1995). An integration model of organization trust. The Academy of Management Review, 20(3), 709–734. https://doi.org/10.2307/258792 Mellouli, M., Bouaziz, F., & Bentahar, o. (2020). e-government success assessment from a public value perspective. International Review of Public Administration, 25(3), 153–174. https://doi.org/10.1080/12294659.2020.1799517 Munyoka, W., & Maharaj, M. s. (2019). privacy, security, trust, risk and optimism bias in e-government use: the case of two southern African development community countries. SA Journal of Information Management, 21(1), 1–9. https://doi.org/10.4102/sajim.v21i1.983 neuman, s. s., omer, t. c., & schmidt, A. p. (2019). Assessing tax risk: practitioner perspectives. Contemporary Accounting Research, Forthcoming. Available at ssrn: http://dx.doi.org/10.2139/ssrn.2579354 patma, t. s., Wardana, l. W., Wibowo, A., narmaditya, B. s., & Akbarina, F. (2021). the impact of social media marketing for indonesian sMes sustainability: lesson from covid-19 pandemic. Cogent Business & Management, 8(1), 1953679. https://doi.org/10.1080/23311975.2021.1953679 pramanita, i. g. A. A., ngr, g., & rasmini, i. K. (2020). sistem e-Filing dan Kepatuhan Wajib pajak orang pribadi: studi D&M is success Model pada Kpp pratama Denpasar timur. E-Jurnal Akuntansi, 30(11), 2825–2838. prasojo, l. h., & pratomo, D. (2015). pengaruh Kualitas informasi, Kualitas sistem, dan Kualitas layanan Aplikasi rail ticket system (rts) terhadap Kepuasan pengguna sistem (studi Kasus pada pt. Kereta Api indonesia (persero) DAop 2 Bandung). E-Proceeding of Management, 2(1), 555–562. putra, r., sobri, K. M., Azhar, A., & santoso, A. D. (2022). Antecedents of e-government perceived net benefits: A study of e-filing in indonesia. TELKOMNIKA (Telecommunication Computing Electronics and Control), 20(5), 1016. https://doi. org/10.12928/telkomnika.v20i5.22560 Qosasi, A., permana, e., Muftiadi, A., purnomo, M., & Maulina, e. (2019). Building sMes’ competitive advantage and the organizational agility of apparel retailers in indonesia: the role of ict as an initial trigger. Gadjah Mada International Journal of Business, 21(1), 69. http://journal.ugm.ac.id/gamaijb https://doi.org/10.22146/gamaijb.39001 rehman, i. h. u., turi, J. A., szyrocka, J. r., Alam, M. n., & pilař, l. (2023). the role of awareness in appraising the success of e-government systems. Cogent Business & Management, 10(1), 2186739. https://doi.org/10.1080/233119 75.2023.2186739 rukmiyati, n. M. s., & Budiartha, i. K. (2015). pengaruh Kualitas sistem informasi, Kualitas informasi Dan perceived usefulness pada Kepuasan pengguna Akhir software Akuntansi (studi empiris pada hotel Berbintang Di provinsi Bali). Journal of Management Information Systems, 2(1), 1–11. https://doi.org/10.1016/j.giq.2003.08.002 cogent Business & MAnAgeMent 17 santa, r., MacDonald, J. B., & Ferrer, M. (2019). the role of trust in e-government effectiveness, operational effectiveness and user satisfaction: lessons from saudi Arabia in e-g2B. Government Information Quarterly, 36(1), 39–50. https://doi.org/10.1016/j.giq.2018.10.007 santhanamery, t., & ramayah, t. (2013). the effect of personality traits on user continuance usage intention of e-filing system. Journal of Economics, Business and Management, 1(1), 25–29. https://doi.org/10.7763/JoeBM.2013. v1.6 schaupp, l. c., & carter, l. (2010). the impact of trust, risk and optimism bias on e-file adoption. Information Systems Frontiers, 12(3), 299–309. https://doi.org/10.1007/s10796-008-9138-8 setyoko, p. i., Faozanudin, M., Wahyuningrat, W., harsanto, B. t., simin, s., isna, A., & rohman, A. (2023). the role of e-billing and e-spt implementation on user satisfaction of e-filing taxpayers. International Journal of Data and Network Science, 7(2), 965–972. https://doi.org/10.5267/j.ijdns.2022.12.014 shahzad, A., hassan, r., Aremu, A. Y., hussain, A., & lodhi, r. n. (2021). effects of coviD-19 in e-learning on higher education institution students: the group comparison between male and female. Quality & Quantity, 55(3), 805– 826. https://doi.org/10.1007/s11135-020-01028-z shim, M., & Jo, h. s. (2020). What quality factors matter in enhancing the perceived benefits of online health information sites? Application of the updated Delone and Mclean information systems success Model. International Journal of Medical Informatics, 137, 104093–104093. https://doi.org/10.1016/j.ijmedinf.2020.104093 susanto, t. D., & Aljoza, M. (2015). individual acceptance of e-government services in a developing country: Dimensions of perceived usefulness and perceived ease of use and the importance of trust and social influence. Procedia Computer Science, 72, 622–629. https://doi.org/10.1016/j.procs.2015.12.171 taing, h. B., & chang, Y. (2021). Determinants of tax compliance intention: Focus on the theory of planned behavior. International Journal of Public Administration, 44(1), 62–73. https://doi.org/10.1080/01900692.2020.1728313 tam, c., loureiro, A., & oliveira, t. (2020). the individual performance outcome behind e-commerce: integrating information systems success and overall trust. Internet Research, 30(2), 439–462. https://doi.org/10.1108/ intr-06-2018-0262 tam, c., & oliveira, t. (2017). understanding mobile banking individual performance: the Delone & Mclean model and the moderating effects of individual culture. Internet Research, 27(3), 538–562. https://doi.org/10.1108/ intr-05-2016-0117 teo, t. (2008). A cross-cultural examination of the intention to use technology between singaporean and Malaysian pre-service teachers: An application of the technology Acceptance Model (tAM). Educational Technology and Society, 11(4), 265–280. tjen, c., indirani, v., & Wicaksono, p. t. (2019). prior experience, trust, and is success model: A study on the use of tax e-filing in indonesia. Journal of The Australian Tax Teacher Association, 14(1), 240–263. veeramootoo, n., nunkoo, r., & Dwivedi, Y. K. (2018). What determines success of an e-government service? validation of an integrative model of e-filing continuance usage. Government Information Quarterly, 35(2), 161–174. https:// doi.org/10.1016/j.giq.2018.03.004 venkatesh, v., chan, F. K. Y., & thong, J. Y. l. (2012). Designing e-government services: Key service attributes and citizens’ preference structures. Journal of Operations Management, 30(1–2), 116–133. https://doi.org/10.1016/j. jom.2011.10.001 venkatesh, v., Morris, M. g., Davis, g. B., & Davis, F. D. (2003). user acceptance of information technology: toward a unified view (utAut). MIS Quarterly, 27(3), 425–478. https://doi.org/10.2307/30036540 Widyari, n. Y. A., Ariyanto, D., suprasto, h. B., & suputra, i. D. g. D. (2021). understanding the impact of e-filing system performance on tax compliance using the Delone and Mclean model. Jurnal Dinamika Akuntansi Dan Bisnis, 8(2), 161–180. https://doi.org/10.24815/jdab.v8i2.21746 Zaidi, F., Azlina, A. B., & Abdullah, W. s. (2017). how perceived effort expectancy and social influence affects the continuance of intention to use e-government. A study of a Malaysian government service. Electronic Government, an International Journal, 13(1), 69–69. https://doi.org/10.1504/eg.2017.083943 Zaidi, s. K. r., henderson, c. D., & gupta, g. (2017). the moderating effect of culture on e-filing taxes: evidence from india. Journal of Accounting in Emerging Economies, 7(1), 134–152. https://doi.org/10.1108/JAee-05-2015-0038 Ziemba, e. (2018). The ICT adoption in government units in the context of the sustainable information society. Proceedings of the [paper presentation]. 2018 Federated conference on computer science and information systems, Fedcsis 2018 (pp. 725–733). https://doi.org/10.15439/2018F116 Ziemba, e. (2019). the contribution of ict adoption to sustainability: households’ perspective. Information Technology & People, 32(3), 731–753. https://doi.org/10.1108/itp-02-2018-0090 Ziemba, e., papaj, t., & Żelazny, r. (2013). A model of success factors for e-government adoption—the case of poland. Issues in Information Systems, 14(2), 87–100.