Analysis of the Effectiveness of Tax Audit Implementation on Tax Revenue at the Blora Primary Tax Office In 2021 and 2022

Abstract

Tax constitutes one of the largest sources of state revenue in Indonesia and makes a significant contribution to the State Budget (APBN). The Indonesian tax administration system must be capable of anticipating various tax avoidance strategies. One of the measures undertaken by the Directorate General of Taxes (DJP) is the implementation of tax audits. Tax audits result in a Tax Audit Report, which serves as the basis for issuing a Tax Assessment Letter (Surat Ketetapan Pajak/SKP). Each year, the government establishes tax revenue targets for every Primary Tax Office (KPP), including the Blora Primary Tax Office. Revenue targets that are excessively high and disproportionate to the number of Functional Tax Auditors available during a given year may reduce both the quality and quantity of tax audits conducted. This study aims to determine and analyze the effectiveness of tax audit implementation using five evaluation variables. The research employs a descriptive method with a quantitative approach. Conclusions are drawn from the results of data analysis and interviews. The findings indicate that tax audit implementation at the Blora Primary Tax Office in 2021 and 2022 was effective and showed improvement.