Omnichannel Taxation, Perceived Tax Audit Probability and Digital Tax Compliance: A Game Theoretic Analysis
DOI:
https://doi.org/10.62486/agma2025323Keywords:
Omnichannel taxation, digital transformation, audit probability, game theory, tax complianceAbstract
Introduction: As AI-enhanced omnichannel taxation becomes increasingly prevalent in digital government landscapes, understanding its influence on taxpayer compliance behaviour is essential, particularly in emerging economies where digital tax initiatives are still evolving.
Objective: This study investigates the strategic interactions between omnichannel taxation, perceived tax audit probability, digital tax transformation, and tax compliance behaviour within a game theory framework, distinguishing between voluntary and enforced compliance.
Method: A quantitative research design was employed, analysing survey data from 485 individual taxpayers residing in Indonesia’s Greater Jakarta Area. The proposed research model was tested using Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine both direct and mediating relationships amongst key variables, thereby ensuring a rigorous assessment of the hypothesised framework.
Results: Findings reveal that omnichannel taxation significantly drives digital transformation and enhances voluntary compliance, highlighting its role in building trust and convenience. In contrast, perceived audit probability exerts a strong effect on enforced compliance, consistent with deterrence theory. Furthermore, digital transformation mediates the relationship between omnichannel taxation and voluntary compliance, demonstrating the importance of technological adoption in shaping behavioural outcomes. Together, these findings indicate that voluntary and enforced compliance represent complementary rather than competing mechanisms in the digital tax environment.
Conclusion: Theoretically, this study advances the application of game theory in taxation by showing an evolution from zero-sum to positive-sum dynamics in compliance behaviour. Practically, tax authorities should prioritise improving error-prevention features, enabling seamless cross-platform integration, and adopting pre-filled tax returns to stimulate voluntary compliance and strengthen taxpayer trust.
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