Taxpayer Behavioral Adaptation to Algorithmic Risk Profiling and Emerging Compliance Strategy Displacement
DOI:
https://doi.org/10.59890/ijmbi.v4i5.63Keywords:
Algorithmic Risk Profiling, Tax Compliance, Tax Audit, Digital Taxation, Taxpayer BehaviorAbstract
Digital transformation in taxation has encouraged the adoption of algorithmic risk profiling in tax audits; however, this technological advancement may alter taxpayer compliance behavior and reshape emerging compliance strategies. This study aims to analyze the effects of algorithmic risk profiling perception, perceived audit risk, and trust in digital tax administration on taxpayer compliance behavior. The study employs a quantitative approach through a survey of 200 taxpayers in Surabaya, Indonesia. Data were analyzed using linear regression analysis supported by instrument testing and classical assumption tests. The findings indicate that algorithmic risk perception and trust in digital tax systems contribute to improving taxpayer compliance behavior. This study contributes to the development of risk-based audit strategies and digital tax administration practices.
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