Impact of IT Leadership on Transformation of the Role of IT in Improving Individual Tax Return Reporting Compliance at the Directorate General of Taxes

The Directorate General of Taxes (DGT) applies technological advances in filing applications for tax return reporting, which was previously carried out manually. This enables DGT to reduce administrative work. IT is inseparable from the presence of IT leadership that can direct existing resources to get maximum results. Based on the interviews with four section heads in DGT, there are still problems regarding late and even not submitting taxpayers tax return reports. It can affect the level of tax return reporting compliance. This study aims to determine the role of IT leadership in supporting the role of IT to improve tax return reporting compliance. The results showed that the increase in online tax return reporting compliance was due to a massive campaign carried out by the DGT Head Office, DGT Regional Offices, and Tax Offices in terms of services, counseling, public relations, and IT infrastructure upgrades. This study indicates differences in the IT role in several phases of the tax return reporting service development at DGT. The success of IT support in achieving tax return reporting was inseparable from the IT leadership approach applied at DGT, namely collaboration, efficiency, organizational values, cooperation with the IT industry, competency development, clear division of duties, optimization of services, and changes in IT project leader. It showed that the increase in the role of IT in an organization had to be following the strengthening of IT leadership within an organization and support to driver started from the reformation and efficiency of IT within the organization.