When Both Parties Act Rationally: The Dialectic Between Account Representatives and Taxpayers in Tax Revenue

Abstract

Income tax revenue at Tax Office level is primary foundation of the state fiscal which is determined by the effectiveness of tax authority supervision and taxpayer compliance. This study examines the association between Account Representative Supervision Intensity and Tax Return Filing Volume and the realization of corporate and personal income tax revenue, using monthly administrative data from the tax office rather than self-reported perception. This study uses a quantitative approach based on pooled data consisting of 72 monthly observations from Jakarta Cilandak and Jakarta Pasar Minggu Tax Offices for the 2022–2024 period, analyzed using robust standard errors regression (GLM HC3) and contextualized through interviews with senior Account Representatives. The results indicate that ARSI shows no significant association with income tax revenue realization, whereas TRFV shows a positive and significant association. These findings suggest that strengthening tax revenue depends less on the intensity of coercive supervisory activity and more on the effectiveness of administrative system in facilitating routine reporting compliance