The Impact of E-Government on Tax Compliance Behavior: A Study of Administrative Reform in Developing Countries

Abstract

This study investigates the impact of e-government reforms on tax compliance behavior in developing countries, addressing the persistent challenge of low voluntary compliance despite technological advancements in tax administration. The research aims to assess how digital platforms influence taxpayer behavior, particularly through factors such as perceived ease of use, trust in tax authorities, and fairness. Employing a mixed-methods approach, data were collected through surveys of 400 individual taxpayers and 100 SMEs, alongside in-depth interviews with key stakeholders in two developing countries that recently adopted e-tax systems. Quantitative analysis using regression and structural equation modeling, complemented by thematic qualitative analysis, reveals that e-government implementation significantly improves tax compliance by enhancing transparency and institutional trust. However, the impact varies across income groups and digital literacy levels, underscoring the need for inclusive policies and user support. The study concludes that e-government reforms contribute to more effective and equitable tax systems only when combined with efforts to build taxpayer trust and digital capacity. This research contributes to the literature by integrating behavioral and institutional perspectives within the context of digital governance in developing countries and offers practical recommendations for policymakers to design citizen-centered tax reforms.