DIGITALIZATION OF TAX ADMINISTRATION: ANALYSIS OF THE IMPLEMENTATION OF THE CORE TAX ADMINISTRATION SYSTEM

Abstract

Taxation is the main instrument for financing national development, but the effectiveness of state revenue is often hindered by fragmented administration. This research aims to analyze the effectiveness of tax administration transformation thru the implementation of the Core Tax Administration System in strengthening law enforcement and encouraging taxpayer compliance during the transition period. The research uses the empirical legal method (socio-legal) with a descriptive-analytical approach and is conducted at the KPP Pratama Cibinong, Bogor Regency. Data were obtained thru legal document studies and in-depth interviews with fiscal authorities and corporate taxpayers. The research results show that CTAS functions as a more objective oversight mechanism thru end-to-end data integration and the optimization of Compliance Risk Management. The digital standardization increased the efficiency of formal law enforcement, as reflected in the office inspection effectiveness of 120% and the billing effectiveness of 79.50% in 2024. However, operational implementation still faces challenges such as technology adaptation, the rigidity of third-party data validation algorithms, and low digital literacy among some small business and agrotourism operators. KPP Pratama Cibinong mitigates these obstacles thru the optimization of PER-11/PJ/2025 as a persuasive legal bridge that aligns digital supervision with the principle of ultimum remedium in the HPP Law. These findings emphasize that the success of tax law enforcement in the digital era depends on the balance between technological reliability and the guaranty of procedural justice for taxpayers.